VC Buzz - $174.55+ Million in Today's Deals
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New in the News
STAMFORD, Conn.-- Icon International, a surplus and excess inventory solutions provider with annual revenues of $120 million, announced completion of a financing round in which it raised $95 million from a group of investors which include J.H. Whitney & Co., Canaan Partners, Technology Crossover Ventures and Allied Capital. The funds will be used by Icon to complete the development and subsequent launch of a new web-based full-service, business-to-business company dedicated to new, like-new, returned and surplus inventory. The new company will offer its customers a web site to conduct business-to-business transactions to buy and sell goods and inventory. In addition, customers will be able to select from a broad array of Icon's strategic services including inventory disposition, channel control, merchandising, comprehensive logistics and sophisticated finance solutions that go beyond cash settlements.http://www.icon-intl.com
MALVERN, Pa.-- United Messaging Inc., a company that delivers high performance electronic messaging solutions for business, closed on a second round of funding, raising $31 million from a group led by Oak Investment Partners and the Infinity Capital Group. Also participating were previous United Messaging investors Internet Capital Group (Nasdaq:ICGE), which earlier this year acquired an interest in United Messaging, Labrador Ventures, K.B. Chandrasekhar, co-founder and chairman of Exodus Communications (Nasdaq:EXDS), and David Lipson, the vice chairman of FCG's Integrated Systems. http://www.unitedmessaging.com http://www.oakinv.com http://www.infinityllc.com http://www.icge.com http://www.labrador.com
CHARLOTTESVILLE, Va. -- Boxerjam.com, a producer of primetime gameshows online, received a second round of financing worth $12 million from New Enterprise Associates and Oak Investment Partners. Boxerjam Inc. produces original gameshows that have a broad demographic appeal, drawing players from all over the world for intelligent multi-player competition. Over two million Boxerjam gameshow hours are logged each month and as many as 15,000 simultaneous players participate for prize games.http://www.boxerjam.com http://www.nea.com http://www.oakinv.com
MOUNTAIN VIEW, Calif.-- click2send.com Inc., a company that specializes in online file delivery, handling and storage, secured $10 million in its first institutional round of funding led by Vertex Management. Other primary investors included East/West Capital; Angel Investors LP; and individual strategic angel investors, including executives from AboveNet and USWest.http://www.click2send.com http://www.vertexmgt.com http://www.svangel.com
SYOSSET, N.Y. -- Kirlin Holding Corp. (Nasdaq:KILN) completed a $7.65 million private placement on behalf of its new subsidiary, VentureHighway.com Inc. Kirlin Securities, Inc. acted as exclusive placement agent on the deal. Kirlin Holding Corp. holds 63.7% with a minority interest held by Individual Investor Group Inc. (15.8%) (Nasdaq: INDI). Launched in mid-1999, http://www.venturehighway.com is an Internet matching service linking angel investors, venture capitalists, and corporate strategic partners with small and mid-sized businesses seeking capital.
ARLINGTON, Va. -- MIRUS Information Technology Services, a new enterprise application services provider, completed its first round of venture capital funding and announced the finalization of its acquisition of Houston-based Greer Information Services. The $7 million in financing was received from a combination of institutional and private sources, including several investors from Houston, where MIRUS' headquarters is located. Greer Information Services, an information technology services organization, provides MIRUS with a team of 20 highly experienced technical professionals specializing in the implementation and management of the J.D. Edwards Enterprise Resource Planning software and the Information Builders data warehousing and analysis package for the MIRUS service offering.http://www.mirus-its.com
FREMONT, Calif.--Amplify.net Inc. announced the closing of a round of $6.1 million in equity funding from three corporate investors, including 3Com Corp. (Nasdaq:COMS), Wi-LAN Inc. (ASE: WIN) and Kingston Technology Corp. Amplify's existing investors Alpine Technology Ventures, Aspen Ventures and two individual "angel" investors also participated in this round of funding. The current investments follow a first venture capital round of $3.63 million in June 1998. Amplify.net develops and markets broadband access enabling solutions that provide multiservice subscriber provisioning, guaranteed class of service, traffic shaping, data warehousing and usage billing and analysis for service providers and network equipment suppliers. http://www.amplifynet.com
CEDAR KNOLLS, NJ-- IBS Interactive Inc. (Nasdaq:IBSX), an Internet and IT business solutions provider, raised $5.8 million in equity capital through two private placements of equity securities and the conversion of $600,000 in convertible debt. Terms were not disclosed. IBS Interactive provides comprehensive, cost-effective e-business and information technology solutions to businesses and organizations. http://www.interactive.net
SAN FRANCISCO-- Eveo Inc., a digital entertainment company, secured its first round of funding, an undisclosed investment from venture capital firm Media Technology Ventures. Eveo is creating a unique participatory broadband destination, empowering a user to produce and premiere original short form digital video. Media Technology Ventures is a broadband and convergence-focused venture capital fund. Eveo is launching in the first quarter of 2000.http://www.mtventures.com
ATLANTA-- eHatchery LLC, a next-generation e-business incubator, announced investments in Figleaves, an upscale one-stop-shop featuring an extensive selection of brand name essential wear (undergarments, socks, hosiery, etc.), and VetExchange, a Web-based veterinary practice management solution that links veterinarians, suppliers and animal owners. Both companies are currently going through an intense incubation process within the eHatchery facility and are anticipated to launch within the next 90 days. eHatchery institutional investors include idealab!, United Parcel Service, Donaldson, Lufkin & Jenrette and Botts & Company.http://www.ehatchery.com
PACIFIC PALISADES, Calif.-- TopTutors.com, a real-time online tutoring company, received a major investment from technology incubator idealab!, and idealab! Capital Partners. TopTutors.com uses state-of-the-art proprietary technology to provide quality tutoring for students around the country. With TopTutors.com, students learn from credentialed teachers who deliver personalized instruction as they tutor in real-time via the Internet.http://www.toptutors.com http://www.icp.com
Internet Fact of the Day
Internet-based learning will grow to a $50 billionmarket by 2005, according to a new research report by U.S. Bancorp Piper Jaffray. Among the trends supporting this explosive growth are increased Internet access both in the United States and worldwide, with 350 million Web users expected by 2003; the recognized importance of "lifelong learning" in ensuring job security and financial well being; and the surge in e-commerce revenues and online advertising spending, which will help underwrite Internet-based learning initiatives.
NEW YORK-- Bessemer Trust Company N.A., a wealth management and investment advisory firm, announced the final closing of two Bessemer-managed venture capital funds of funds with aggregate commitments of $600 million. These funds - Old Westbury Venture Capital Fund II and BSC Venture Fund -- will co-invest in other funds focused primarily on early-to-mid stage companies in technology, technology related, communications, and healthcare industries. To date, the funds have committed to invest with 16 managers in the U.S. and Europe. As of the close, the funds have committed $180 million to 16 different funds, and expect to invest in more than 30 funds in total. Bessemer also plans to commit a portion of the assets to newer venture capital management groups. Everest Ventures, an affiliate of the General Partners of Bessemer Venture Partners, will serve as portfolio consultant.
WASHINGTON-- Trade Compass, an international trade process solutions and global business web site, announced that FDX Corp. (NYSE:FDX), parent of Federal Express Corp. and RPS Inc., made an equity investment in Trade Compass Inc. In addition to the, FDX has also licensed Trade Compass' online tools and services for use by FDX employees via the FDX corporate intranet. These tools and services include Stat-USA Plus, an essential trade information service, the Trade Acronym Expander, HS Code Classifier, the Trade Compass Daily Brief and the monthly Gateway E-Zine that provide valuable information on the latest events affecting global trade. David J. Roussain, FedEx vice president, electronic commerce marketing, and Gerald P. Leary, FedEx vice president, global trade services, have become members of the Trade Compass board of directors. http://www.tradecompass.com
PEARL RIVER, NY-- Quintel Communications, Inc. (NASDAQ:QTEL) made a strategic investment in generationA.com Inc., which has developed a website that hopes to become the premier online community for Americans aged 50 and over. The site features nine core channels, including personal health, personal finance, travel, family, arts & entertainment, Internet & training, sports, lifestyle and politics. A portion of the content will be designed to help GenerationA.com members "bridge the gap" between themselves and their grandchildren. Quintel has made a number of investments recently: Innovation Factory, itarget.com, and SkyMall. http://www.generationa.com
NEW YORK-- THCG Inc. (NASDAQ:THCG) signed a Letter of Intent to acquire Mercury Coast Inc., an Internet business creation company based in New York for approximately $11 million (700,000 shares of THCG unregistered common stock) with additional equity-linked compensation to be paid to Mercury Coast's management team over time. Pursuant to the acquisition, THCG will acquire 100% of Mercury Coast, including equity interests in a number of Internet companies served by Mercury Coast. In addition, all officers and employees of Mercury will join THCG. Upon completion of the acquisition, expected by December 31, 1999, Larry W. Smith, co-founder and CEO of Mercury Coast will join THCG as president and will be appointed to the THCG board of directors. Prior to founding Mercury Coast, Smith was co-founder and CEO of U.S. Interactive (NASDAQ: USIT), an Internet professional services company. http://www.thcg.com http://www.mercurycoast.com
SAN JOSE, Calif.-- Puma Technology Inc. (NASDAQ:PUMA), a provider of mobile device management and synchronization software, signed a definitive agreement to acquire NetMind Technologies Inc., a provider of Internet infrastructure software for personalization. Puma will exchange five million shares of Puma common stock for all of NetMind's outstanding capital stock, warrants and options. The merger is expected to qualify as a tax-free reorganization and the parties expect to account for the transaction as a pooling of interests. Certain affiliates of NetMind have agreed to vote their shares in favor of the merger. The transaction is expected to close in Puma's third fiscal quarter ending April 30, 2000. Netmind's investors include Softbank, BancBoston Ventures, Techfarm, Techfund Capital, Chase Capital Partners, Draper Fisher Jurvetson and Charter Venture Capital. http://www.pumatech.com
SAN DIEGO -- The Titan Corporation (NYSE:TTN) announced that its subsidiary Cayenta.com has executed a definitive agreement to acquire all of the stock of ASSIST Cornerstone Technologies Inc. for cash and stock of Cayenta.com. Cayenta.com will purchase ASSIST for $13 million in cash and 4% of Cayenta.com stock subject to a post-closing audit and adjustments. ASSIST's technology provides a complete front to back-end solution to companies focused on conducting business over the Internet. ASSIST's technology and employees will become an integral part of Titan's e-business solutions subsidiary Cayenta.com. The transaction is expected to close by the end of December. http://www.titan.com http://www.assistintl.com
PLEASANT HILL, Calif. -- Tut Systems Inc. (Nasdaq:TUTS), a provider of integrated communications systems for the multi-tenant unit market, signed a definitive agreement to acquire FreeGate Corp. FreeGate designs, develops and manufactures low cost, easy-to-use, Internet service appliances that enable advanced Internet applications. Tut will integrate FreeGate's flagship product, OneGate, into its MTU product line to allow service providers to enhance their suite of Internet access solutions by offering additional business-class services such as email, firewalls, remote management, virtual private networking, and future capabilities such as voice and video. FreeGate has been funded by Accel Partners, Integral Capital Partners, AT&T Ventures, Convergence Partners, Intel Corp., DynaFund, and NetOne, FreeGate's Japanese distributor. http://www.tutsys.com http://www.freegate.com
RESTON, Va. -- VIA NET.WORKS, an international Internet and electronic commerce company serving primarily the small and mid-size business market, has marked its entry into Mexico with the acquisition of Mexico City-based InfoAcces S.A. de C.V., a network and Internet integrated solutions company. Terms of the acquisition were not disclosed. VIA NET.WORKS is funded by BCI Advisors, Bessemer Venture Partners, Boston Millennia Partners, Centennial Funds, Chase Equity Associates, Crescendo World Fund, First Union Investors,Harbourvest International, Norwest Venture Partners, Providence Equity Partners, Telecom Partners and Verio Inc.http://www.via-net-works.com
LAS VEGAS-- FiberChem Inc. (OTCBB:FOCS) reached a definitive agreement with Intrex Data Communications Corp. of Vancouver, British Columbia, to combine the businesses of FiberChem and Intrex. Under the terms of the Agreement, the shareholders of each company will own an equal share of the combined company. FiberChem is to be renamed DecisionLink Inc., which will continue to be traded on OTCBB.
Intrex is a private company and its proprietary Internet and communications technology provides customers with a real-time system for communicating data to or from remote or mobile assets using wireless, satellite or cellular data systems. That data is routed through Intrex's Global Data Network which acts as a data gateway and an Applications Service Provider. Using the Internet and wireless communications, the GDN allows a customer to monitor and control remote or mobile assets such as gas wells, pipelines, compressors, storage tanks, offshore platforms, or service vehicles directly from a desktop PC using the Internet and wireless communications.http://www.intrexsat.com
SYDNEY, Australia-- The directors of Hunter Exploration NL announced that the company has entered into an agreement to subscribe for a 31% interest in E-Auction Australasia Pty Ltd with a right to acquire an additional 4% and a right of first refusal over an additional 12.4%. EAA is the holder of an exclusive license to exploit the business strategies and technology of e-Auction Global Trading Inc in Australia and New Zealand. e-Auction (OTCBB:EAUC) has a current market capitalization of approximately $60M. http://www.eauctioninc.com
CAMBRIDGE, Mass.-- Effective immediately, Arepa, an innovative provider of broadband content on demand, has changed its name to Into Networks. The change was made to communicate the company's mission to create a worldwide platform for the real-time delivery of rich media over broadband networks. Into Networks secured more than $15 million in third-round financing in June from investors including Cisco Systems, MediaOne Ventures, Motorola Inc., Inktomi Corp., Intel Corp., National Computer Board of Singapore, Lauder Partners, BancBoston Capital, Fidelity Ventures and Venrock Associates.http://www.intocorp.com
REDMOND Wash.-- The board of directors of Spacelabs Medical Inc. (Nasdaq:SLMD) authorized the engagement of investment bankers to explore a spin-off or other means to re-capitalize its new Internet subsidiary, Lifeclinic.com. The Lifeclinic.com web site was launched December 6, 1999. The new site helps consumers benefit from over 10,000 vital-signs monitoring kiosks that measure parameters, such as blood pressure, pulse and weight, in pharmacies and other retail locations across the United States. The kiosks have an established community of approximately 3 million unique users who generate approximately 200 million readings per year. The web site provides health-related content and utilizes proprietary personal medical record charting software that enables consumers to track and facilitate the management of their health. It is expected that the 10,000 existing vital-signs kiosks will initially provide monitoring locations for users of the web site. The company is at an advanced stage in the development of a web-enabled kiosk that will allow consumers to have their vital-signs measurements automatically downloaded into their personal health chart on Lifeclinic.com. This e-kiosk is expected to be completed in the first half of the year 2000. http://www.spacelabs.com
GERMANTOWN, Md. and CINCINNATI, Ohio-- Broadwing Inc. (NYSE:BRW), a data and Internet-centric communications company with a next-generation network, and e-Net Inc. (Nasdaq:ETEL), an Internet telephony company, announced that Broadwing is making an equity investment in e-Net. Broadwing will purchase 18.26 percent of e-Net's issued and outstanding shares for $10.8 million. Broadwing will now be the sole provider of network capacity, termination and other network elements for e-Net's subsidiary ZeroPlus.com for two years. Under an agreement reached in September, Broadwing already provides e-Net with access to Gemini2000 - Broadwing's coast-to-coast, next-generation Internet backbone - along with network support, collocation services, joint marketing and sales support. e-Net provides its ZeroPlus customers with software and installation support, long distance routing on an Internet Protocol network, technology and customer support. http://www.broadwing.com http://www.e-net.com
KING OF PRUSSIA, Pa.-- EarthMed.com launched its online alternative health portal, a new Web site that provides a comprehensive foundation of alternative medicine practitioners, associations, services, articles, products, remedies and events. Evolving from a two-year-old online practitioner referral service, EarthMed.com has received private capital investments totaling $3.5 million for launch.http://www.earthmed.com
Who's Who & Where
MENLO PARK, Calif.-- Mambo.com, an online activity and event planning and payment service, announced the appointment of two highly experienced Bay Area professionals to its executive team -- Kim Kapoor, as vice president of brand marketing, and Maggie Young, as senior director of corporate communications. Kapoor and Young bring their consumer brand marketing and public relations experience from Netscape, AOL, Unilever and Ernest and Julio Gallo Winery. The company has received funding from Hummer Winblad Venture Partners and angel investors.http://www.mambo.com
SAN FRANCISCO-- NextPlanetOver, an Internet destination for the entertainment hobbyist, has added strength to its merchandising, business development and information systems with the addition of three experienced leaders. Matthew Schwartz is now the company's vice president of merchandising; Victor Limongelli has joined NPO as general counsel and vice president of business development; and Kenneth D. Johnson now serves as the company's vice president of information systems. NextPlanetOver is backed by CMGI @Ventures (Nasdaq:CMGI) and IDG Ventures. http://www.npo.com
SAN FRANCISCO-- Fort Point Partners Inc., an Internet services firm dedicated to helping companies sell better online, announced the addition of three key executives to its management team. The new members are: Barbara Beasley, vice president, people, who joins Fort Point Partners from Andersen Consulting; Rob Schmults, vice president, strategy, who joins the firm from McKinsey & Co; and John Strain, vice president, projects, who also comes to Fort Point from Andersen Consulting. Its venture capital partners include Accel Partners and Baker Communications Fund L.P.http://www.ftpoint.com
SAN FRANCISCO -- reflect.com, the first interactive, personalized beauty service created solely for the Internet, appointed Amazon.com logistics veteran Alex Zelikovsky as chief logistics officer. The company was formed in September by Procter & Gamble and Institutional Venture Partners (which recently merged with Brentwood Venture Capital to form Redpoint Ventures).http://www.reflect.com
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