VC Buzz - $138+ Million in Today's Deals
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New in the News
CLEVELAND -- PlanSoft Corp., an Internet-based business-to-business solution provider for the $100 billion North American meeting and convention industry, raised $24 million in venture capital funding. The sum brings PlanSoft's total invested capital to $40 million. ted industry suppliers. The latest financing round is led by Cornerstone Equity Investors andComcast Interactive Capital. Other new investors include Key Mezzanine Capital; Cleveland Pacific Equity Partners; and Randolph Street Partners. All venture capital investors from earlier venture rounds also invested in this latest financing. Those investors include Patricof & Co. Ventures, Primus Venture Partners, Wasserstein Adelson Ventures, IDG Ventures, and M.H.M. & Co.http://www.plansoft.com http://www.cornerstone-equity.com http://www.civentures.com
LOS ANGELES-- PeopleSupport Inc., a provider of mission-critical Internet customer care, announced investments totaling nearly $18 million from a group led by Accel Partners and Benchmark Capital. Also participating were previous PeopleSupport investors idealab Capital Partners and TMCT Ventures. To date, $25 million has been raised.http://www.PeopleSupport.com http://www.accel.com http://www.benchmark.com http://www.icp.com
CAMBRIDGE, Mass.-- Excelergy Corp., a technology leader for the deregulated energy industry, secured $17.6 million for a second round of venture funding, bringing the total amount invested in 1999 to approximately $25 million. The new financing led by Nassau Capital LLC includes significant new funding from Portal Software. Excelergy's two existing venture capital investors, Battery Ventures and Hummer Winblad Venture Partners, are also investors in this round. This round of financing will be used to fund Excelergy's development of next generation customer choice transaction and billing systems, as well as to support the nationwide expansion of Excelergy's e-ChoiceNet, an Internet-based auction site for retail energy procurement.http://www.excelergy.com http://www.nassau.com http://www.portal.com http://www.battery.com http://www.humwin.com
NOVATO, Calif.-- Brightware Inc., a supplier of eCustomer assistance software for the Internet, completed a fourth round of venture capital financing totaling $14.4 million. CDIB Venture Management, a new investor in Brightware, led the round and was joined by other new investors including UOB Venture Management Pte. Ltd., the venture capital arm of United Overseas Bank Group, Concord Venture Capital, Woodside Fund, the Starwood Capital Group and B.T. Investment Partners.http://www.brightware.com
SANTA CLARA, Calif. -- Paragon Software, a developer of synchronization software for use with mobile phones, received an injection of capital investment funds totaling $14 million. This second round of financing includes five investors from key global markets. 3Com Ventures, business development group of 3Com Corp. (Nasdaq:COMS), US-based Hambrecht & Quist's Access Technology Partners L.P. and Hikari Tsushin Inc., the largest distributor of wireless communication devices in Japan. Completing the financing are 3i plc and Kennet Capital, who are both investing in Paragon Software for a second time. Paragon's mission is to be the world's leading developer of software for synchronizing personal information between the desktop, the Internet and mobile devices. http://www.paragonsoftware.com
BERKELEY and MENLO PARK, Calif.-- Gamers.com, an Internet gaming portal, secured a commitment from @Ventures, the affiliated venture capital arm of CMGI Inc. (Nasdaq:CMGI), guaranteeing the site's $11 million initial round of financing. Gamers.com will use the capital to fund aggressive marketing and business development activities and to support the build-out of additional, user-requested site features and services. http://www.gamers.com http://www.cmgi.com
ANDOVER, Mass. -- I-Logix Inc., a provider of development environments for embedded systems, received $10.5 million in a mezzanine round of venture financing, the largest single investment in the company's history. The investment was led by ABS Ventures (Baltimore, MD), an affiliate of Deutsche Bank Alex Brown -- a new I-Logix investor -- and included North Bridge Venture Partners (Waltham, MA), which was already an investor in the company.http://www.ilogix.com http://www.nbvp.com
WELLESLEY, Mass., WASHINGTON and NEW YORK -- Battery Ventures invested an additional $10 million in Pedestal Inc., an Internet-based secondary mortgage market exchange. This investment represents Pedestal's second venture capital financing from Battery.http://www.pedestal.com http://www.battery.com
WALTHAM, Mass. -- Vigil Technologies Inc., a pioneer in online intelligence solutions, raised $5.5 million in a second round of private financing from Polaris Venture Capital, Chase Capital Partners, and Seed Capital Partners, a SOFTBANK affiliate fund. This financing will be used to build Vigil's marketing, sales and customer support infrastructure, and to fund the launch of e-Sense, Vigil's initial service offering for online intelligence.http://www.vigiltech.com http://www.chasecapital.com
NEWTON, Mass.-- NewMediary.com, a Web-based business-to-business directory that connects buyers and sellers of Internet services, completed a $5 million second round of funding. The $5 million infusion was received from a Boston-based syndicate of venture capital firms, including Advanced Technology Ventures, Commonwealth Capital and Still River Fund.http://www.newmediary.com
SATSOP, Wash.-- SafeHarbor.com, a provider of dynamic, loyalty-building Web-based customer relationship management support services, completed a $4.5M second round of financing including significant investments from Olympic Venture Partners and Silknet Software Inc. (Nasdaq:SILK). Olympic Venture Partners, which invested in SafeHarbor.com's seed round in January 1999, led the second round with an investment of $2M. Silknet Software contributed $1.5M. http://www.SafeHarbor.com http://www.silknet.com
LOS ANGELES-- Brand3 Inc., a developer of Internet-based relationship-building programs for branded organizations, completed its seed round of venture funding. The infusion of $2 million from Trans Cosmos USA Inc., Silicon Valley Angels, Colman Partners and individual investors will enable Brand3 to launch its first programs on schedule, in early 2000. Brand3 targets its programs at merchants looking to establish close, durable relationships with their target audiences via the Internet.http://www.brand3.com
LOS ANGELES -- Numex Corp. (OTCBB:NUMX) received $1.5 million in debt financing from Bastion Capital Corp., a private equity investment firm. The company, which recently launched its Web site at http://www.InternetMercado.com, will utilize the funding to expand and promote its consumer e-commerce strategy. The company's Web site has been designed for Hispanic consumers residing within the U.S. The site is completely bilingual and currently offers Hispanic consumers secure, on-line ordering capabilities, for a range of computer products. http://www.InternetMercado.com
MIAMI -- Power Capital Partnership Inc. (OTCBB:PCPI) signed a Heads of Agreement to establish a joint venture to deliver education and training services via the Internet. The target markets for the joint venture are Asia and developing countries. Power Capital will initially own 50% of the common stock of the joint venture through a newly established Australian subsidiary, Power Venture Partners Pty Ltd. The remainder of the common stock will be owned by a group of investors from the Asia Pacific region involved in creating the Internet delivery platform and developing potential marketing and distribution channels. Power Capital will provide up to $1million in working capital for the joint venture, and will raise this money and a limited amount of additional working capital through a private placement of convertible redeemable preferred stock. Power Capital will also undertake a 50 to 1 reverse split of its common stock.
MONTREAL-- Martlet Venture Management Inc. (Alberta SE: MVM) made a strategic investment in The Gay Financial Network Inc. The Gay Financial Network Inc. is the first Internet financial services company whose mission is to help the gay and lesbian community build wealth by providing comprehensive financial information and the highest-quality financial services. Financial terms were not disclosed.http://www.gfn.com http://www.martlet.com
PEARL RIVER, NY-- Quintel Communications, Inc. (NASDAQ:QTEL) made a strategic investment in itarget.com, an on-line, permission-based e-mail database marketing and development company. In addition to Quintel's investment in itarget.com, the two companies have signed a definitive marketing agreement whereby Quintel will have access to itarget's entire database for a minimum of four promotional programs per month. http://www.itarget.com
DEERFIELD, Ill.-- Woodhead Industries Inc. (NASDAQ:WDHD) made an equity investment in Symphony Systems. Terms of the transaction were not disclosed. Located in Campbell, CA., Symphony Systems is developing a comprehensive, open architecture solution for web-based equipment application software. Symphony's products enable advanced connectivity between the factory floor manufacturing equipment and the many distributed users, providing real-time access to the information that is required to manage and optimize the equipment operations. http://www.woodhead.com
SAN FRANCISCO -- Informative Inc., a provider of Web-based, real-time information solutions, received venture funding from Nokia Ventures. Informative will use the funds to expand its product offering and advance its mission of making customer feedback available globally to businesses of all sizes. Terms were not disclosed. In other news, the company appointed William J. Vaughan as CFO and treasurer. Vaughan comes from Palo Alto, CA-based Salix Pharmaceuticals, where he served as corporate controller.http://www.informative.com http://www.nokiaventures.com
REDWOOD CITY, Calif.-- Niku Corp., a provider of software that enables businesses to source, manage and deliver professional services using the Internet, signed a definitive agreement to acquire Proamics Corp. in an equity deal valued in excess of $40 million. Based in Lincolnshire, Ill., Proamics is a provider of back-office solutions for professional services firms, including time and expense, project accounting and billing solutions. When the acquisition is complete, Niku will have more than 200 customers and 325 employees in offices in Atlanta, Chicago, Redwood City, Calif., Amsterdam, Sydney and Toronto. The acquisition is expected to close by the end of the year.http://www.niku.com http://www.proamics.com
MCLEAN, Va. -- PRIMUS Telecommunications Group (Nasdaq:PRTL), a facilities-based global communications company offering a portfolio of bundled domestic and international voice, data and Internet services, acquired the business of closely held 1492 Technologies LLC of Alexandria, VA. For more thanthree years, 1492 Technologies has been working with businesses in the planning, design, implementation and management of their web activities and enabling e-commerce applications. The entire management and key staff of 1492 Technologies will remain with the company. Terms of the acquisition were not disclosed. http://www.iPRIMUS.com http://www.mxdii.com
TORONTO - AT&T Canada Inc. (TSE/ME: TEL.B and NASDAQ:ATTC) reached an agreement to purchase the 49% minority stake of Netcom Canada it does not own and said that it will merge and integrate its four Canadian Internet businesses, as well as the recently-acquired Microsoft Network Services customers in Canada. Ron Close, who was previously president, CEO and co-founder of Netcom Canada Inc. will lead the combined company, to be called AT&T Canada Internet and E-Business Services. http://www.attcanada.com
AUSTIN, Texas -- AV Labs, the new spin-off fund from Austin Ventures, closed its first fund of $60 million. Additionally, AV Labs announced investments in early stage ventures Covasoft, Ireturnit.com, MediaPrise and Webtaggers. The fund focuses on seed and first round Internet companies delivering business-to-business, business-to-consumer, applications and infrastructure products and services through the Internet.http://www.avlabs.com
PASADENA, Calif.-- Acacia Research Corp. (Nasdaq:ACRI) received $10.5 million in proceeds from the exercise of warrants and has formed a wholly owned subsidiary, Acacia Launchpad LLC. The common stock purchase warrants, which had been issued in conjunction with prior privately-placed equity financings, were exercised to purchase approximately 1.2 million shares of the company's common stock. Acacia Launchpad's mission is to incubate and accelerate the development of new Internet companies. Launchpad will provide seed capital and an environment that enables ideas to grow and get to market quickly. http://www.acaciaresearch.com
Internet Fact of the Day
Thirty percent of U.S. Hispanic households now own computers, up from 13% in 1994, a number that is growing at twice the national average, according to the Tomas Rivera Policy Institute. Internet use among U.S. Hispanic households has increased from 2% in 1994 to 15% today.
ANDOVER, Mass.-- CMGI Inc. (NASDAQ:CMGI) launched the CMGI @Ventures B2B Fund, a new venture fund to be focused exclusively on business-to-business Internet venture capital investments. The fund is expected to reach up to $1 billion in capital. Nearly two-thirds of the companies in the current @Ventures portfolio operate in the business-to-business arena. To be managed by the current team of @Ventures partners, the CMGI @Ventures B2B Fund will have CMGI as its sole limited investor. To date, @Ventures has made more than 50 Internet venture capital investments. In other news, the company appointed Robert Alperin to spearhead the company's business development and integration team. Alperin comes to CMGI from Arch Communications Group, where he was vice president of business development. http://www.cmgi.com
MENLO PARK, Calif.-- Mohr, Davidow Ventures announced MDV VI, a $300 million fund that will fuel the growth of entrepreneurial companies in e-Commerce, Internet services, Internet infrastructure and semiconductors. MDV VI brings to $800 million the total amount under management by MDV, which specializes in building early-stage investments into large, highly successful companies and has had seven IPOs just this year. MDV VI will fuel the growth of 20 to 25 companies.http://www.mdv.com
Who's Who & Where
IRVING, Texas-- iCelebrate.com, a holiday and seasonal decorating site, has formed its executive team. J. Russell Denson has been named chairman of the board and chief executive officer and Jason McCann has been appointed president and chief operating officer. Tim Hinkhouse named as executive vice president and chief financial officer, Michael Pannullo appointed vice president of merchandise, Justin Anderson named as chief technology officer, Julie Abdinoor named vice president of marketing and Barry Stiles as vice president of operations. The company is privately held.http://www.icelebrate.com
HOLLYWOOD-- Leading distributor of short-form entertainment QuickBand Networks signed on Kim Adelman as editor of SHORT, the popular compilation of award-winning live-action, animated, experimental and documentary short films distributed exclusively on DVD. She joins QuickBand Networks from fXM: Movies From Fox. The company also promoted Craig Wells to director of acquisitions.http://www.quickband.com
ALHAMBRA, Calif.-- PropertyFirst.com Inc., creator of an online multiple listing service for the commercial real estate industry, announced that Sterling Champ has joined the company as vice president, marketing and business development for the For Lease product line. Champ will be responsible for the successful business initiation and ongoing revenue production for the new For Lease product line that is planned to launch January 2000. The privately held company recently closed a $44.3 million financing round.http://www.propertyfirst.com
SAN FRANCISCO-- mPower, formerly known as Emergent Advisors, a provider of online retirement investment advice, named Dennis Chookaszian chairman and CEO of the firm. Chookaszian joins the company from CNA, where he served as chairman and CEO from 1992 to 1999. He joined CNA in 1975 and served as the company's CFO, president and COO before becoming CEO. MPower investors include Media Technology Ventures, GE Capital's Equity Capital Group, Norwest Venture Partners, and Capital Z Partners.http://www.mpower.com
SAN FRANCISCO -- Small business partner Bigstep.com announced the hire of a COO. John D. Spottiswood brings to the team a rich background of national and international management experiences with Toys "R" Us, McKinsey & Company, Sony Enterprise Company and most recently, the Internet's leading matchmaker, Match.com. Bigstep.com is funded by US Venture Partners, Mayfield Fund, The Washington Post Company, Partech International, Draper Richards, Angel Investors LP, Argus Capital, Staenberg Private Capital and private investors.http://www.bigstep.com
CUPERTINO, Calif. -- Kanisa Inc., an e-Service solution provider, announced the appointment of Dominique Trempont as chief executive officer. Prior to joining Kanisa, Trempont was chief executive officer and president of Gemplus Corp. Kanisa completed its second round of financing in July, with Ernst & Young and Sierra Ventures.http://www.kanisa.com
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