Head Count:

Excite@Home's CEO moves on By Julie Landry

Redherring.com, September 25, 2000.

HEAD COUNT HEADLINERS / September 25

GEORGE BELL, formerly chairman and CEO of Excite@Home, now looking to retire by the end of 2001.

JEANI DELAGARDELLE, formerly general partner with Weiss, Peck & Greer, now venture partner with the Sprout Group.

JENNIFER JONES, formerly president of Jennifer Jones Consulting, now marketing partner with Mayfield Fund.

ALSO: President and COO depart Divine, former presidential hopeful Bill Bradley finds a new hobby, and Justice Department's Klein resigns.

E-Business: Starting Gate

Chiaro Networks Cashes In On Hot Fiber-Optic Market

By LISA BRANSTEN Staff Reporter of THE WALL STREET JOURNAL

Seedlings

While the Iron Is Hot

NETWORKING COMPANY Chiaro Networks is more than a year away from having a product to test, but it decided to move now to collect the cash needed to get the product out the door. After all, investors right now are tossing big bucks at anything that is even close to the red-hot area of optical networking.

Unlike some other companies in this sector, Chiaro (www.chiaro.com), Richardson, Texas, doesn't make an all-optical product, but one with an optically based interior. The device is known as a "switch," and moves data around the Internet. Much of Chiaro's switch uses traditional electronics, rather than optics. But it is optical enough for today's marketplace. Indeed, Ken Lewis, Chiaro's chief executive, said the product will use optical technology to process more traffic than anything on the market today.

Mr. Lewis says he made a calculated decision to go after venture backing right now, "given the fact that the money was there now and not knowing what the situation might be next year."

The company is announcing Tuesday that it has raised $100 million in a round led by Polaris Venture Capital.

Chiaro will face competition not only from giants such as Cisco Systems and Juniper Networks but also from such well-financed start-ups as Ironbridge Networks, already starting to test its product. Mr. Lewis says he is betting he can build a product with more capacity than any of his competitors could; that seemed to be enough for investors.

"It was easier for us to raise this $100 million than it is to get a credit card from the bank," he laughs.

Giving Something Back

A TREND AMONG the growing legions of young cyber-rich involves finding new ways to put some of that wealth back into the community. The latest to jump into the fray is Full Circle Fund.

Known until last week by the code name "Mona Lisa Project," the fund was organized by Josh Becker, 31 years old, an associate at the Menlo Park venture firm Redpoint Ventures, along with friends from other venture firms and start-ups. The Full Circle Fund is another entry into the arena of "venture philanthropy," in which donors try to help nonprofits in much the same way venture capitalists help start-ups. Full Circle participants, for example, will take board seats at the nonprofits they fund to help them run their operations.

Already the group has raised $200,000 from about 20 people, Mr. Becker says, with the goal being to raise $500,000 by year end.

Managing the Data

ONE OF THE TRICKY issues created by the Web is how to manage the explosion of digital content that companies own. Artesia Technologies (www.artesiatech.com) is tackling the problem with software allowing customers to organize and distribute digital information, including text, audio and video files.

The Rockville, Md., company is announcing today that a group of investors, including software makers Vignette and BEA Systems and Internet consultancy Razorfish, is putting $25.5 million into the company, bringing total investments to $40 million.

Artesia was spun out of Canadian media company Thomson. Chris Veator, Artesia's chief executive, expects the company to become a big player as Web speeds increase and users gain easier access to new kinds of content, like sound and video.

Artesia's systems allow such content to be stored and grouped together. For example, a company could store digital brochures about a product along with files of its television advertisements. The product can deliver that content to computers and all kinds of devices.

Seedlings

ONE INCREASINGLY COMMON post at venture firms is that of "marketing partner" -- a staffer who both helps the firm hone its image and works with portfolio companies to do the same. Mayfield Fund is one of the latest to add such a role by bringing on Jennifer Jones, who had been an outside marketing consultant. Others with such a post include Foundation Capital and Sequoia Capital. ... UReach, a unified messaging company of Holmdel, N.J., is announcing that it has raised $16 million from Argo Global Capital and BancOne.

Write to Lisa Bransten at lisa.bransten@wsj.com

VENTUREWIRE --- Tuesday, September 26, 2000

Private Company Business News Published Daily by

Technologic Partners

http://technologicpartners.com

Top Stories:
  • Optical Networker Chiaro Gets $100 Million in Round Three
  • Bertelsmann and iSyndicate Create Joint European Venture
  • Novalux Holds Third Round of Financing for $109 Million
  • Online Jewelry Retailer Miadora Closes Down
  • Sun Microsystems Starts $50 Million Asian Investment Program
  • Mayfield Fund Names Consultant as Marketing Partner

Also in This Issue:

New Money:

  • Healthcare Financial ASP Gets $32 Million First Round
  • IP Platform Firm Palmchip Gets $13 Million in First Round
  • Telcom Global Solutions Raises $11 Million from Bear Stearns
  • Network Infrastructure Firm Nexsi Gets $75 Million
  • Ballroom Dancing Site DanceScape Lands $650,000 First Round
  • Consulting Firm Netigy Raises $75 Million in Round Three
  • Energy Marketplace Myutility.com Gets Seed Funding
  • Integration Service Firm YellowShirt Closes First Round
  • Mobile ISP Brightpod Gets $5 Million First Round
  • Net Business Services Firm Hencie Has $2.8 Million Round One
  • Net Services Firm Epylon Raises $47 Million in Second Round
  • Hart InterCivic Gets $32.5 Million in Second Funding Round
  • Lineo Raises $22.5 Million From Motorola Subisidiary
  • Communications ASP uReach Raises $16 Million in Funding
  • Expedia.com Takes an Equity Stake in eGulliver Travel Site
  • ISP NextWeb Gets Round B Funding from Kaiser and Monet
  • Net Software Provider ANT Raises $7.3 Million Second Round
  • Petroleum Marketplace FuelSpot.com Raises Funds, Lauches
  • Routing Platform Firm Gotham Secures $25 Million Round Two
  • ChemNavigator.com Secures $6.25 Million in Series C Funding
  • Ford Takes Equity Stake in Expense Management Firm Captura
  • Online Privacy Firm Predictive Has $45 Million Round Three
  • Semiconductor Software Firm Cynergy Raises $4.5 Million
  • Web Navigation Tools Developer Annotate.net Gets $4 Million
  • Wireless Infrastructure Firm qServe Secures $32.5 million
  • Nonstop Solutions Raises $50 Million in Mezzanine Round
  • Artesia Technology Secures $26 Million in Mezzanine Round
  • Interactive TV Maker Telecruz Raises $35 Million Mezzanine
  • Siemens Joins Sitara's $20 Million Series G Funding Round
  • Winfield Capital Invests in Online Books Retailer Espiral
  • Online Learning Platform Tuesday Interactive Raises Funds
  • Online Lease Financing Firm eMarket Raises $5 Million
  • STM Wireless Invests in Streaming Media Firm BroadEdge

New Products:

  • SmartPipes, Backed by Kleiner and Clark, Launches Beta
  • Online Payment System Provider PocketPass.com Launches
  • Fujitsu-ICL and Foursan Partner to Serve the Middle East
  • w-Trade Technologies Changes Name To w-Technologies

M&A:

  • Auto Auction Site Autodaq Buys Remarketing Firm MarketWise
  • Burley House Weddings and Confetti Network Merge
  • DeepBridge Content Solutions Acquires Online Communications

New Directors:

  • Greenhouse Fund CEO Joins E-Commerce Firm @TheMoment's Board
  • Database Marketer ROI Direct Taps Intuit CFO for Board
  • IBM Executive Joins Network Services Firm E-smith's Board
  • Lease Management Software Firm LeaseForum Names Board Member
  • Supply Chain Firm Efinity Names Ex-PairGain CFO to Board
  • Two From Internet HealthCare Group Join ActiveCyte Board
  • Two Investors Take Seats on Sharing Technologies' Board

New People:

  • ePromos.com Names Former NetCreations Exec as President, CEO
  • Internet Barter Appoints Ex-beenz.com Chairman as CEO
  • Net Authentication Systems Firm Authentor Names CEO

VC Fund News:

  • Venturelab Partners Launches $100 Million Second Fund
  • Atle Fvretagskapital Restuctures Investment Subsidiary
  • Net Value Holdings Changes Name to Stonepath Group

VC Personnel:

  • Former 3Com Ventures President Joins Matrix as a Partner

VW Amplification:

  • Sharing Technologies

VW Corrections:

  • epipeline.com

Top Stories

Optical Networker Chiaro Gets $100 Million in Round Three

RICHARDSON, Texas -- Chiaro Networks, a provider of optical networking equipment, said it secured more than $100 million in third round funding. Polaris Venture Capital led the round with Koor Corporate Venture Capital acting as co-lead. Other new investors Charter Growth Capital, Mustang Ventures, Robertson Stephens' Bayview 2000 Fund, and Vitesse Venture Fund also participated. Existing investors CenterPoint Ventures, Crown Advisors, Intel Capital, InterWest Partners, Rho Management, Sevin Rosen, and Star Ventures contributed to the round as well. The funds will be used to develop and launch the company's product. Last December, the company moved its headquarters from Jerusalem to Richardson, Texas, but still maintains facilities in Jerusalem. http://www.chiaro.com/

Bertelsmann and iSyndicate Create Joint European Venture

HAMBERG, Germany -- Global media corporation Bertelsmann and Internet content marketplace provider iSyndicate said they agreed to form a joint venture to provide content syndication services and technology in Europe. Each founding company will hold a 50% stake in the new joint company, doing business as iSyndicate Europe. As a result of the agreement. Bertelsmann will acquire 4% of iSyndicate. The company will have headquarters in Hamberg, Germany. iSyndicate's London office will be the first affiliate office of the new ventures. Bertelsmann has the right to appoint the new firm's chief executive officer and its chief creative officer, Rolf Schmidt-Holtz, will sit on the company's board of directors. iSyndicate's co-founder, president, and CEO Joel Maske will chair iSyndicate Europe. iSyndicate is backed by Hambrecht & Quist, InfoSpace, Labrador Ventures, Microsoft, NBC, News Digital Ventures, Scripps Ventures, and Vignette. http://www.isyndicate.com/ http://www.bertelsmann.com

Novalux Holds Third Round of Financing for $109 Million

SUNNYVALE, Calif. -- Novalux, a developer of fiber optics components, said it raised its third round of funding for $109 million. Morgan Stanley Dean Witter Venture Partners led the round, which included new investors Cisco Systems, Credit Suisse First Boston, Intel Capital, Lamoreaux Partners, MSD Capital, NorthEast Ventures, Salomon Smith Barney, Sternhill Partners, Telesoft Partners, and U.S. Bancorp Piper Jaffray. Previous investors that funded the round include Crescendo Ventures, Crown Advisors, DynaFund, RWI, Tredegar Investments, and Vanguard Venture Partners. Morgan Stanley Dean Witter Venture Partners managing director William Harding will join the company's board of directors. The company will use the funding to expand its manufacturing capacity and create design teams to develop additional photonic products. http://www.novalux.com/

Online Jewelry Retailer Miadora Closes Down

SAN FRANCISCO -- Miadora, an online jewelry retailer, has shut down. According to a posting on the company's Web site, it closed operations on Friday. The company had raised $20 million in its third round of funding in May from investors including Freeman Spogli, Aesop Capital, Capital Research and Management, HarbourVest, Oracle Venture Fund, Pivotal Partners, and Sequoia Capital. Two months prior to the funding Miadora had acquired another jewelry site on the Web, Jewelry.com. http://www.miadora.com/

Sun Microsystems Starts $50 Million Asian Investment Program

PALO ALTO, Calif. -- Sun Microsystems said it launched its Sun Asia Pacific Venure Investment Program with $50 million. The company said it will co-invest with local partners to provide a total of $250 million. The program will invest in Asian companies that focus on Internet, communications, and Internet commerce companies that will complement the company's iForce and Developer.com programs that already invest in Asia Pacific firms. Sun Microsystems said it would partner with venture capital groups in Australia, Japan, Korea, and Taiwan and said it expected to start talks with venture capital firms in other countries soon. http://www.sun.com/

Mayfield Fund Names Consultant as Marketing Partner

MENLO PARK, Calif. -- Mayfield Fund, an investment firm that funds telecommunications, e-commerce, healthcare and semiconductor companies, said it appointed Jennifer Jones as marketing partner, a newly created position. Ms. Jones has served as a marketing consultant to Mayfield Fund since 1989 through her firm, Jennifer Jones Consulting. Ms. Jones will advise Mayfield portfolio companies on branding and marketing as well as directing Mayfield's internal marketing programs. As part of her arrangement with Mayfield, Ms. Jones will also continue to advise Goldman Sachs Global Technology Group. http://www.mayfield.com/

New Money

Healthcare Financial ASP Gets $32 Million First Round

LEXINGTON, Mass. -- eHealth Direct, a developer of ASP-based financial transaction software and services for the health insurance and benefits administration industries, said it raised $32 million in its first round of funding. Investors include Advanced Technology Ventures, the Audax Group, Bain Capital Partners, Chase Capital Partners, Psilos, and Utah Ventures. http://www.ehealthdirect.com/

IP Platform Firm Palmchip Gets $13 Million in First Round

SAN JOSE, Calif. -- Palmchip, which develops and licenses configurable semiconductor IP platforms for embeded system on chip integrated circuits, said it has secured $13 million in its first round of funding led by Index IT, a division of Beeson Gregory. The company said it will use the funds to develop its platform. Palmchip also said it has appointed Michael L. Hackworth, chairman and former president of Cirrus Logic, to its board of directors. Palmchip also named Joseph T. Rodgers, formerly chief financial officer of Quantum, as board chairman. The company also announced ARM Holdings, an early investor in Palmchip, has restructured its investment and retains a minority position below ten percent. http://www.palmchip.com/

Telcom Global Solutions Raises $11 Million from Bear Stearns

IRVING, Texas -- Telcom Global Solutions Holdings, which provides telecom network and radio frequency engineering services for the wireless communications industry, said it received $11 million in its Series A round of funding from Bear Stearns Merchant Banking. The round will be used to expand the scope of the company's wireless deployment operations worldwide, for technology development and enhancement, as well as for recruitment in international markets. http://www.telcomglobalsolutions.com/

Network Infrastructure Firm Nexsi Gets $75 Million

SAN JOSE, Calif. -- Nexsi, a developer of network infrastructure routing systems, said it raised $75 million in a round of funding led by Amerindo Investment Advisors. Capital Research Group, Presidio Venture Partners, Mitsui, and Soros Investments also contributed to the round. Previous investors Sequoia Capital and Raza Ventures also participated. Nexsi is developing routers called to serve as service delivery platforms for high-bandwidth security and traffic management services. http://www.nexsi.com/

Ballroom Dancing Site DanceScape Lands $650,000 First Round

BURLINGTON, Ontario -- DanceScape, a Web site that provides news and information on competitive ballroom dancing, said it received $650,000 in its first round of funding from Timberline Venture Partners. William Kallman, managing partner of Timberline, has joined the board of directors. http://www.dancescape.com/

Consulting Firm Netigy Raises $75 Million in Round Three

SAN JOSE, Calif. -- Netigy, which provides infrastructure consulting and services to enterprise companies, said it raised $75 million in its third round of funding. Van Wagoner Capital Management led the round followed by J&W Seligman, Pilgrim Baxter and Associates, Avalon Capital Management, Trinity Ventures, Morgan Stanley Dean Witter, and Eric Greenberg, founder and chairman of Scient Corporation. The round also included strategic investors Genuity and Dell Ventures. The company plans to use the funds for expansion into the U.K. and staffing. Previous investors are Benchmark Capital, Cisco Systems, and Trinity Ventures. http://www.netigy.com/

Energy Marketplace Myutility.com Gets Seed Funding

NEW YORK -- Myutility.com, an energy services marketplace and information provider for businesses, said it has secured an undisclosed amount of seed capital. The funding was led by TSG Equity Partners, formerly the Shepherd Group. Thomas R. Shepherd, chairman and co-founder of TSG Capital, has joined Myutility.com's board of directors. Mr. Shepherd is also a special partner of Thomas H. Lee Company (THL), a private equity firm. Myutility.com, which is seeking its first round of funding, said it would use the financing to develop its Web site. http://www.myutility.com/

Integration Service Firm YellowShirt Closes First Round

PASADENA, Calif. -- YellowShirt, a provider of hosted integration services, said it has closed its first round of funding at an undisclosed amount. Investments came from Kleiner Perkins Caufield & Byers, Palomar Ventures, and included a strategic investment from webMethods. The company said the funds will be used for sales and marketing. http://www.yellowshirt.com/

Mobile ISP Brightpod Gets $5 Million First Round

RESEARCH TRIANGLE PARK, N.C. -- Brightpod, a mobile Internet services provider incubated by Ericsson, said it has secured $5 million in its first round of funding led by the Aurora Funds. Ericsson will maintain an equity stake and preferred technology relationship with Brightpod. The company also announced it has entered into agreements with a wide range of technology partners, including IBM. http://www.brightpod.com/

Net Business Services Firm Hencie Has $2.8 Million Round One

DALLAS -- Hencie, a service provider and product developer for online companies, said it closed its first round with $2.8 million from Edge Technology Group. The company will use the funds to open new offices, market its Enterprise Plug-in product, create new products and launch new services. Edge's president and CEO Pierre Koshakji will join the company's board of directors. Edge to date has invested $1.4 million in the company. http://www.hencie.com/

Net Services Firm Epylon Raises $47 Million in Second Round

SAN FRANCISCO -- Epylon, a provider of hosted online business services for education and government institutions, said it has raised $47 million in its Series B funding round. The round was led by Highland Capital Partners, and included investments by AC Ventures, Deloitte Consulting Ventures, Galleon Group, Information Technology Ventures, Osprey Ventures, Palladin Group, and Brand Equity Ventures. The company said it will use the funds for sales and marketing. Epylon was funded in previous rounds by Highland Capital Partners, Intel Capital, and ITV. Over the summer, Epylon also sold equity stakes and formed alliances with Andersen Consulting and Deloitte. http://www.epylon.com/

Hart InterCivic Gets $32.5 Million in Second Funding Round

AUSTIN, Texas -- Hart InterCivic, formerly Hart Information Services, which provides election products and Internet government services, said it secured $32.5 million in second round funding led by new investor Texas Growth Fund Management with new investors RES Partners, Summit Capital, and Stratford Capital contributing. Previous investor Triton Capital also participated in the round. Stephen Soileau, principal of the Texas Growth Fund; Fredrick R. Lummis, principal and managing director of Summit Capital; and Scott Collier, managing director of Triton Ventures, joined Hart's board, which now has seven members. The company will use the funds for product development and marketing. http://www.hartintercivic.com/

Lineo Raises $22.5 Million From Motorola Subisidiary

SCHAUMBURG, Ill. -- Motorola, through its subisidiary Metrowerks, said it would acquire 8% of the Lineo, a developer and retailer of embedded Linux technologies, for $22.5 million. The share acquisition gives Lineo a valuation of $281.3 million. Motorola said the acquisition was a step forward for its support of open source technology and open platform computing. The companies said the strategic partnership will result in a variety of joint products and services. Lineo has received previous investments from Egan Managed Capital Group and the Canopy Group. http://www.lineo.com/

Communications ASP uReach Raises $16 Million in Funding

HOLMDEL, N.J. -- uReach, a communications applications service provider, said it received $16 million in financing from Banc One and Argo Global Capital. uReach said the funds will be used to expand its consumer base, and to provide communications services to CLECs, telcos, ISPs, wireless carriers, and portals. uReach also announced Thomas A. Wooters, Jr., vice president and partner at Argo Global Capital, and Gordon Pan, principal at Banc One Equity Capital, have joined its board of directors http://www.ureach.com/

Expedia.com Takes an Equity Stake in eGulliver Travel Site

ORLANDO, Fla. -- Travel site Expedia said it will make an undisclosed equity investment in eGulliver.com, which offers customers advice from travel consultants. The two companies will also form a strategic relationship, giving Expedia's customers access to eGulliver's network of travel specialists. eGulliver is also backed by Atlanta-based Noro-Moseley Partners. http://www.egulliver.com

ISP NextWeb Gets Round B Funding from Kaiser and Monet

SANTA CLARA, Calif. -- NextWeb, an Internet service provider that offers broadband wireless access to small and medium-sized businesses and residents in California, said it received an undisclosed amount of funding in its Series B round from Kaiser Permanente and Monet Capital. The funds will be used for regional expansion. The company said two undisclosed individuals from Monet Capital will join its board of directors. http://www.nextweb.cc/

Net Software Provider ANT Raises $7.3 Million Second Round

CAMBRIDGE, U.K. -- ANT, a provider of embedded communication appliance software for Internet devices and consumer electronics, said it raised $7.3 million in its second round of funding led by Inflexion, which contributed $4.3 million. Beeson Gregory Technology Investments and individual investors also participated in the funding round. ANT said it will use the investment to expand its sales, marketing, and engineering teams. http://www.antlimited.com/

Petroleum Marketplace FuelSpot.com Raises Funds, Lauches

DENVER -- FuelSpot.com, a trade, exchange and e-commerce portal for petroleum transactions, said it launched its Web-based marketplace for the refined products industry. FuelSpot, which recently secured $7.8 million in Series B financing from new investor Internet Capital Group (ICP), also raised an additional $5 million from previous investor Zero Stage Capital. The company said it expects approximately $7.8 million more from ICG in a subsequent phase of the round. FuelSpot.com said it will use the funds to enhance its technology, to expand management team and staff, and for marketing. http://www.fuelspot.com/

Routing Platform Firm Gotham Secures $25 Million Round Two

ACTON, Mass. -- Gotham Networks, which is developing a switching and routing platform, said it received $25 million in second round financing. Crescendo Ventures led the round with ComDisco Ventures contributing. First round investors, Charles River Ventures, and Bessemer Venture Partners also participated in the financing. http://www.gothamnetworks.com/

ChemNavigator.com Secures $6.25 Million in Series C Funding

SAN DIEGO, Calif. -- ChemNavigator.com, which provides online services allowing scientists to gain access to information on chemical compounds, said it raised its Series C round of funding for $6.25 million. The round was the company's first to involve venture capital firms, and was funded by new investors Castle Rock Ventures, Chitung Venture Capital, Life Science Venture Fund, Taurus Enterprises, Source One Ventures Fund, United Overseas Bank, YFY Global Investment, and individual investors. The company will add one representative from a venture capital investor to its board of directors. ChemNavigator.com will use the funding to expand its services offerings and to form additional strategic partnerships. ChemNavigator has also been backed by strategic partner Trega Biosciences. http://www.chemnavigator.com/

Ford Takes Equity Stake in Expense Management Firm Captura

BOTHELL, Wash. -- Captura, which provides automated expense-management systems to businesses, said it has received an undisclosed equity investment from Ford Motor Company. Captura said it will use the funding to create a single, unified system for automating all corporate expenses and online business transactions. Investors for Captura include Hewlett-Packard, MasterCard International, Anschutz Investment, WestBridge Ventures, Merrill Lynch, Oak Investment Partners, Sprout Group, Tudor Global Trading, U.S. Trust Company of New York, and Voyager Capital. http://www.captura.com/

Online Privacy Firm Predictive Has $45 Million Round Three

CAMBRIDGE, Mass. -- Predictive Networks, which is developing technology for online privacy, said it has raised $45 million in its third round of funding led by Advent International and previous investor Battery Ventures. Additional investors included C.E. Unterberg Towbin, Net2Phone, NetRatings, PSINet, and Nippon Telephone and Telegraph. The company said it would use the funds to build its technology, increase marketing in the U.S., and establish new markets in Japan and Europe. http://www.predictivenetworks.com/

Semiconductor Software Firm Cynergy Raises $4.5 Million

SANTA CLARA, Calif. -- Cynergy System Design, which provides embedded system simulation software to semiconductor and embedded system companies developing system-on-a-chip (SoC) products, said it completed a $4.5 million round of financing. Dallas-based Broadband Venture Partners, Motorola Semiconductor Products Sector, and an unnamed Japanese semiconductor company participated in this round. The funds will be used for expansion and sales and marketing. http://www.cynergysd.com/

Web Navigation Tools Developer Annotate.net Gets $4 Million

NEW YORK -- Annotate.net, a Web navigation tools developer, said it received $4 million in additional funding from new individual investors Fayez Sarofim, chairman and founder of Fayez Sarofim & Co., and Eric J. Gleacher, chairman and CEO of Gleacher & Co. The company secured Series A funding from Merrill Lynch, Millennium Technology Ventures, and individual investor Kevin O'Connor, chairman and founder of DoubleClick. Mr. Gleacher will be company's fifth board member. The funds will be used for marketing, distribution deals, and working capital. http://www.annotate.net/

Wireless Infrastructure Firm qServe Secures $32.5 million

GREENVILLE, S.C. -- qServe Communications, which provides wireless infrastructure provisioning services, said it has raised $32.5 million in additional funding. The company said the funds would be used to support its growth through strategic acquisitions. qServe said it has raised $47.5 million to date. The company is backed by Talisman Capital of Little Rock, Arkansas, and Boston's Tudor Investment. http://www.qserve.com/

Nonstop Solutions Raises $50 Million in Mezzanine Round

SAN FRANCISCO -- Nonstop Solutions, a provider of supply chain technology to manufacturers, wholesale distributors and retailers, said it raised $50 million in a mezzanine round of financing. Lead investor Lehman Brothers Venture Partners was joined by new investors Credit Suisse First Boston, Bank of America Securities, and Needham. Previous investors Kleiner Perkins Caufield & Byers, Partech International, Chase H&Q, Altos Ventures, REI, and Integral Capital Partners also participated in the round. The company said it will use the funds to expand its customer base and pursue strategic acquisitions. http://www.nonstop.com/

Artesia Technology Secures $26 Million in Mezzanine Round

ROCKVILLE, Md. -- Artesia Tecnhology, a provider of digital asset management technology, said it has secured $26 million in its mezzanine round of funding. New investors joining first round investor Warburg Pincus Ventures include BEA Systems, Enron Broadband Services, Vignette, Razorfish, and Protege Virtual Management Solutions. Artesia said it will use the funds to continue global expansion of its product development, customer service, sales and marketing, and professional services operations. http://www.artesiatech.com/

Interactive TV Maker Telecruz Raises $35 Million Mezzanine

SAN JOSE, Calif. -- Telecruz Technology, a developer of interactive television technology, said it has raised $35 million in its mezzanine round of funding led by Kavanaugh Media Funds and Oakmont. The round also included Sands Brothers, an investment firm; Spyglass Entertainment Group, an affiliate of Walt Disney; Mark Canton, the former chairman of Columbia TriStar; John Peters of Peters Entertainment and former CEO of Sony Entertainment; Jim Wiatt, CEO of The William Morris Agency; Bob Philpott of Philpott, Bill and Stoles; and Page Jenkins, a registered Investment Advisor. The company said it would use the funds to develop its technology. http://www.telecruz.com/

Siemens Joins Sitara's $20 Million Series G Funding Round

WALTHAM, Mass. -- Sitara Networks, a provider of software and hardware designed to allow large companies and ISPs to more effectively manage their networks, said Siemens invested several million in the company's $20 million Series G funding. As part of the deal, the two companies will set up joint marketing programs. The funds will be used for sales, marketing, and to develop a voice over IP product line. The round also included previously announced investors MFS Investment Management, Van Wagoner Capital Management, Essex High Technology Fund, Deutsche Banc Alex Brown, Thomas Weisel Partners, and private investors. Sitara has raised over $70 million to date. http://www.sitaranetworks.com/

Winfield Capital Invests in Online Books Retailer Espiral

WHITE PLAINS, NY. -- Winfield Capital, a publicly traded small business investment company, said it made an undisclosed investment in Miami Beach, Fla.-based Espiral.com, an online provider of books and textbooks in Spanish and Portuguese. The site serves as a literary community where users can buy books as well as learn and share ideas. http://www.espiral.com/

Online Learning Platform Tuesday Interactive Raises Funds

NEW YORK -- Tuesday Interactive, a developer of customized online learning environments, said it closed a round of financing from institutional and individual investors, including the Wolfson Group and Devor Capital Investments, at an undisclosed amount. The funding will be used for sales, product development, and the anticipated launch of the company's newest application, Accipio. The company said it expects to raise an additional round by the end of the year. Telephone 212-677-8585.

Online Lease Financing Firm eMarket Raises $5 Million

WAYNE, Pa. -- eMarket, a Web-based lease financing company, received $5 million from Internet Capital Group. The company will use the funds to develop its service. eMarket offers fully customized, private-label leasing services on a turnkey basis to equipment manufacturers and their agents, who in turn offer leasing to their customers. http://www.emarketcapital.com/

STM Wireless Invests in Streaming Media Firm BroadEdge

IRVINE, Calif. -- STM Wireless announced that it has invested an undisclosed amount in BroadEdge, a new satellite-based broadband access provider of streaming media content. BroadEdge is also backed by Infonet Services, a provider of global communication services for multinationals, which has invested $2.5 million in the company. Emil Youssefzadeh, the CEO of STM, has been named chairman of BroadEdge. Infonet's vice president of business development, Ken Felderstein, and its director of broadband services, Jan Stevens, will also join BroadEdge's board. http://www.broadedge.net/

New Products

SmartPipes, Backed by Kleiner and Clark, Launches Beta

ATLANTA -- SmartPipes, an IP services company, announced the beta availability of its Global IP Services at a trade show in Atlanta. The launch will enable businesses to activate and manage advanced IP services such as security, virtual private intranet and extranet networks, and voice and interactive collaboration services. Smartpipes is backed by Kleiner Perkins Caufield & Byers and individual investors Jim Clark, founder of Silicon Graphics, Netscape Communications, and Healtheon/WebMD, Tom Jermoluk, former @Home CEO and a partner at Kleiner Perkins, and Dave Roux, co-founder of Silver Lake Management. John Doerr represents Kleiner Perkins on the board. http://www.smartpipes.com/

Online Payment System Provider PocketPass.com Launches

SAN JOSE,Calif. -- PocketPass.Com, a provider of a pre-paid Internet payment system announced its launch. PocketPass offers a plastic card, distributed through retail establishments such as convenience stores, that enables users to make purchases online without a credit card. PocketPass began operations in September 1999 and is backed by $1.25 million in individual funding provided primarily by Inder Singh, chairman and CEO of LynuxWorks, and Yaqub Mirza, president and CEO of both Sterling Management Group and MarJac Investments. Other investors include Alan Meckler, chairman of Internet.com. The company is now raising its first round, a $15 million Series B offering. http://www.pocketpass.com/

Fujitsu-ICL and Foursan Partner to Serve the Middle East

DALLAS -- Fujitsu-ICL, a joint venture between Fujutsu and ICL that provides Internet business services, said it will form a joint venture with Amman, Jordan-based venture capital firm Foursan Technology Partners. The new firm, 4Mena Systems, will be based in the Middle East and provide Internet business design, development, and integration services to companies in the Middle East and North Africa. Fujitsu-ICL provides technical design, systems integration, and managed infrastructure services. Foursan Technology Partners funds Middle East-based startup IT companies. http://www.fjicl.com/ http://www.4san.com/

w-Trade Technologies Changes Name To w-Technologies

NEW YORK -- w-Trade Technologies, a wireless application software and mobile business services provider, said it changed its name to w-Technologies. The company, which began as a wireless trading system provider, now provides a range of wireless applications. w-Technologies is backed by Merrill Lynch, Paine Webber, Deutsche Telecom, Upper Brook Limited, and Eden Capital Fund. http://www.w-trade.com/

M&A

Auto Auction Site Autodaq Buys Remarketing Firm MarketWise

MENLO PARK, Calif. -- Autodaq, an online wholesale automobile auction site, said it purchased Market Wise, an automative remarketing services company, for an undisclosed amount. The combined company will be named Autodaq. Market Wise will be a wholly owned subsidiary run by its current management team. Autodaq is backed by August Capital, Madison Dearborn Partners, and Zilkha Ventures. http://www.market-wise.com/ http://www.autodaq.com/

Burley House Weddings and Confetti Network Merge

LONDON -- The Board of Findel, a home shopping and third party fulfilment business, said it plans to merge the company's Burley House Weddings business with Confetti Network, which operates Web sites that enable users to research and plan weddings. The Burley House Wedding Gift Service was launched by Findel and provides users with an online wedding directory and gift shopping. The combined business will operate under the Confetti brand. Confetti investors include now include Findel, Durlacher, Atlas Venture, Botts & Co., LGT and Marks & Spencer. http://www.burleyhouse.co.uk/ http://www.confetti.co.uk/

DeepBridge Content Solutions Acquires Online Communications

NEW YORK -- DeepBridge Content Solutions, a provider of integrated e-business and content management technology, said it acquired Washington-based Online Communications, a provider of multimedia, video, and Web projects for the healthcare market. OnLine Communications CEO Mark Hollander will join DeepBridge as executive vice president. The financial terms of the acquisition were not disclosed. DeepBridge is backed by $50 million from Jupiter Partners. http://www.deepbridge.com/

New Directors

Greenhouse Fund CEO Joins E-Commerce Firm @TheMoment's Board

SAN MATEO, Calif. -- @TheMoment, provider of a hosted service that enables online marketplaces to use dynamic pricing, such as auctions and negotiated exchanges, said it appointed David Lockwood to its board of directors. Mr. Lockwood is a co-CEO of the Reuters Group's Greenhouse Fund. Mr. Lockwood joins board members Larry Frye, @TheMoment co-founder, president and CEO; Dave Moshal, @TheMoment co-founder and CTO; Ken Goldman, CFO of Siebel Systems; and Jason Strober, a partner at VantagePoint Venture Partners. The Greenhouse Fund led @TheMoment's third round of funding that included investments from Comdisco Ventures, Tarrant Venture Partners, Tibco Software, and VantagePoint Venture Partners. http://www.themoment.com/

Database Marketer ROI Direct Taps Intuit CFO for Board

SAN FRANCISCO -- ROI Direct, a provider of Internet-based direct marketing services, said it has appointed Intuit CFO and senior vice president Greg Santora to its board of directors. ROI Direct is backed by Crosspoint Venture Partners, Accel Partners, HarbourVest Partners, Pivotal Asset Management, and Vanguard Venture Partners. ROI offers database marketing, e-mail marketing, and e-commerce services to mid-tier businesses. http://www.roidirect.com/

IBM Executive Joins Network Services Firm E-smith's Board

BOSTON -- E-smith, a provider of network server technology for small and mid-sized businesses, said it appointed the vice president of technology strategy for IBM Worldwide John Landry to its board of directors. Investors for e-Smith include Greylock and Red Hat. The company's flagship product, the e-smith server and gateway, is an open-source, Linux-based network server. http://www.e-smith.com/

Lease Management Software Firm LeaseForum Names Board Member

SANTA CLARA, Calif. -- LeaseForum, a provider of Web-based lease and asset management software and services, said it will appoint James Tenner to its board of directors. Mr. Tenner was formerly the president and chief operating officer of the Family Education Network and one of the five founding members of AT&T Capital. Shawmut Capital Partners is LeaseForum's sole investor. http://www.leaseforum.com/

Supply Chain Firm Efinity Names Ex-PairGain CFO to Board

ALISO VIEJO, Calif. -- Efinity, which provides a Web-based marketplace that allows manufacturers to exchange supply chain and business data with their trading partners, said it named Charles W. McBrayer to its four-member board of directors. Mr. McBrayer was CFO and executive vice president of PairGain Technologies. Efinity is backed by private investors. http://www.efinity.com/

Two From Internet HealthCare Group Join ActiveCyte Board

AVON, Conn. -- Internet HealthCare Group (IHCG), an e-health holding company, said two of the senior members of its Boston-based management team, Sena Biswas and Jason P. Rhodes, joined the board of ActiveCyte, a provider Internet-based decision support services and licensing exchange for the biopharmaceutical industry. The board appointment follows IHCG's $10 million investment in ActiveCyte, which was founded by Boston Consulting Group. http://www.ihcg.com/ http://www.activecyte.com/

Two Investors Take Seats on Sharing Technologies' Board

PARIS -- Sharing Technologies, which develops knowledge management applications, said it has appointed Mizuhiko Hashimoto and Pierre Brunet to its board of directors. Mr. Hashimoto is head of International Investment Team of NIF Ventures, and Pierre Brunet is the senior vice president of Investissement Desjardins. Both NIF Ventures and Investissement Desjardins have invested in Sharing. http://www.sharing.com/

New People

ePromos.com Names Former NetCreations Exec as President, CEO

NEW YORK -- ePromos.com, a business-to-business provider of promotional product services, said it named Mitchell York, former president and COO of NetCreations, as president and chief executive officer. Mr. York will be replacing the company founder, Jason Robbins, who will continue on as chairman of the board. ePromos is backed by Axalon Internet Group and Industry Ventures. http://www.epromos.com/

Internet Barter Appoints Ex-beenz.com Chairman as CEO

SAN FRANCISCO, Calif. -- Internet Barter, which maintains the business-to-business electronic barter trade network BarterTrust.com, said it named Philip L. Letts, former chairman and chief executive officer of beenz.com, as chief executive officer. Mr. Letts will succeed founder Mike Edelhart as CEO. Mr. Edelhart served as president and chief executive officer since 1999 and will continue as director of the company. Backers for Internet Barter include Vector Capital, General Motors Investment Management, GE Equity, Venture Strategy Partners, Generation Partners, MSC Industrial Direct, PurchasePro.com, and Argus Capital. http://www.bartertrust.com/

Net Authentication Systems Firm Authentor Names CEO

ENGLEWOOD, Calif -- Authentor Systems, which provides authentication systems to secure Internet commerce and corporate information, said it has appointed George Schad as its new president and CEO replacing Al Latif. Mr. Schad worked at Intergram, an Internet protocol telephony. Authentor, formerly known as Sentry Systems, is backed by Catalyst Partners, FLV Fund, Sandlot Capital, and SI Venture Associates. http://www.authentor.com/

VC Fund News

Venturelab Partners Launches $100 Million Second Fund

SANTA MONICA, Calif. -- Venturelab Partners said it launched its second fund, Venturelab Delta, a $100 million fund that will focus on Internet telecommunications services and fund approximately 10-15 companies with an average investment of $2.5 million each. The fund will also consider investing in companies involved in informational technology, computer sciences and software, electrical engineering, pharmaceuticals, medical devices, chemistry and chemical processes, and new media technology. http://www.venturelabpartners.com/

Atle Fvretagskapital Restuctures Investment Subsidiary

STOCKHOLM -- Atle Fvretagscapital is restructuring its investment subsidiary, Teknologiparkernas Utveckling, into Atle Ventures. The company said the maneuver will enable it to increase its investments in early-stage information technology companies. The company said that part of the restructuring will entail investments of SEK 200 million ($20.8 million) in around 20 enterprises through Atle Ventures over the next 3-4 years. Christer Nillson, an investment manager with Atle Fvretagskapital, will become chief executive of Atle Ventures. Mr. Nillsen said Atle Ventures intends to triple in size over the next five years. Atle Ventures will assume the development and management of investments in Accra Teknik, SuperForm, COX Analytical Systems, Biosurface Pharma, Flexprop Production, and C-Power. http://www.atle.se/

Net Value Holdings Changes Name to Stonepath Group

SAN FRANCISCO -- Net Value Holdings, a publicly traded investment and services firm, said it changed its name to Stonepath Group. The company plans to expand its early-stage investment focus by making later-stage investments and developing its technology consulting. Net Value Holdings holds interests in AlarmX.com, AssetExchange, BrightStreet.com, FlowerGarage.com, Metacat, SwapIt.com, YesAsia.com, and Webmodal.

VC Personnel

Former 3Com Ventures President Joins Matrix as a Partner

WALTHAM, Mass. -- Matrix Partners, a venture capital firm that invests in technology companies with an emphasis on e-commerce, said that Edgar Masri, a former senior executive with 3Com, has joined the firm as a partner. Most recently, Mr. Masri was president of 3Com Ventures and senior vice president of 3Com's corporate business development. Prior to that, Mr. Masri was senior vice president and general manager of 3Com's network systems. http://www.matrixpartners.com/

VW Amplification

Sharing Technologies

NEW YORK -- A story in yesterday's VentureWire wasn't clear about the sources of Sharing Technologies' $15 million third round funding. The company raised $9 million in equity and $6 million in a bridge loan from IBM Global Financing.

VW Corrections

epipeline.com

NEW YORK -- A story in VentureWire on September 13 about epipeline's new president incorrectly listed Healtheon/WebMD, Alston & Bird, and VerticalOne as investors in the company. The story also omitted SunTrust Equitable Securities as an investor.

SEND TO A FRIEND

To subscribe to VentureWire, tell your friends and colleagues to go to: http://venturewire.net/. This copy of VentureWire may be distributed freely, provided that the distribution is without charge, that the issue is distributed complete and unaltered, and that all copies retain the Technologic copyright notice.

TO SUBSCRIBE go to: http://venturewire.net/. To CHANGE your address, send your old and new e-mail address to: change@venturewire.com. To UNSUBSCRIBE, send e-mail to: listoff@venturewire.com. Send COMMENTS, QUESTIONS, or NEWS ITEMS to: editor@venturewire.com. Entire Contents Copyright 2000 by Technologic Partners VentureWire is a Service Mark of Technologic Partners.

Contact: Yogen K. Dalal or Kevin A. Fong
Managing Partners, Mayfield Fund
(650) 854-5560
info@mayfield.com