VC Buzz – $152.85 Million in Today’s Deals

New in the News



AdminiQuest, ADTECH, AetherWorks, Camdens, Cogit.com, computerActive, ConnecTech, Embion, iCOMS, InfoNow, NetGift Registry, ON Technology, On2.com, Research Connections, Respond.com, RightNow Technologies, SalesLogix, ServerCom, Sick-bay.com, SkyMall, Sunrise Web Development, Webb Interactive Services



 






Alan Bratton and Thoma Cressey Equity Partners Form IT Solutions Firm



SAN FRANCISCO– Alan Bratton and private equity investment firm Thoma Cressey Equity Partners announced their partnership in the formation of ConnecTech Inc., an information technology systems implementation firm. Alan Bratton will be the company’s president and chief executive officer. Thoma Cressey Equity Partners committed $40 million in equity to fund the company’s acquisition strategy and aggressive internal growth program. Bratton, former operating officer and executive vice president of Decision Consultants Inc., will focus on pursuing strategic acquisitions that enable ConnecTech to build an organization of information technology professionals that are in high demand and short supply in today’s market.


http://www.tc.nu






SalesLogix Secures $32.5 Million of Additional Financing



SCOTTSDALE, Ariz. –SalesLogix Corp. (Nasdaq: SLGX), a provider of customer relationship management and e-commerce software, raised $32.5 million in subordinated debt financing with common stock warrants from affiliates of Bank of America and GE Capital Corp. The proceed

s will be used in part to fund the acquisition of ACT! by SalesLogix, as well as activities related to the launch of Interact.com as a business-to-business sales community.


http://www.saleslogix.com






RightNow Technologies Secures $16.2 Million in First Round



BOZEMAN, Mont.– RightNow Technologies Inc., a developer of Internet customer care systems, announced that Greylock and Summit Partners participated in RightNow Technologies’ $16.2 million first round of venture funding. Greylock acted as the lead investor. Greylock’s general partner, Roger Evans, joined the RightNow Technologies board of directors. RightNow Technologies automates customer service and technical support operations for Internet-connected organizations.


http://www.rightnowtech.com


http://www.greylock.com


http://www.summitpartners.com






InfoNow Closes First Round of $16 Million Financing with Putnam Investments



DENVER — InfoNow Corp. (OTCBB: INOW) closed the first round of a $16 million investment in the company by a group of institutional investors. The first round represents an investment of $5 million in the company by two investment funds advised by Putnam Investments. The second round is expected to close on or about January 25, 2000, and will provide an additional $11 million of equity capital to the company, invested by affiliates of Soros Private Equity Partners and Stolberg, Meehan & Scano. InfoNow enables channel dependent companies to use the Internet to close more sales through their local channel partners.


http://www.infonow.com






Cogit.com Secures $14,150,000 in Latest Funding Round



San Francisco — Cogit.com, a provider of real-time, relevant eMarketing services bringing together offline consumer data and analytics with online interests and behavior, closed its fourth round of venture financing amounting to $14,150,000. The funding is being led by New Enterprise Associates, with continued participation by Institutional Venture Partners, Crosslink Capital and Wilson, Sonsini Goodrich & Rosati. In addition, Cogit.com has added new investors in this round, including Dain Rauscher Wessels; Dresdner Kleinwort Benson; C.E. Unterberg, Towbin; Lighthouse Capital Partners; Mindful Partners; and Springcreek Partners.


http://www.cogit.com






ON Technology Consummates $12 Million Private Placement



WALTHAM, Mass.– ON Technology Inc. (NASDAQ: ONTC), completed a $12 million private placement of common stock and warrants to two

institutional investors. The financing was lead by Castle Creek Technology Partners LLC, and the other investor was Marshall Capital Management Inc., an affiliate of Credit Suisse First Boston. The investors each purchased 514,837 shares of common stock and received warrants to purchase 257,419 shares of common stock at $15.15 per share. The investors also received warrants to purchase additional shares of common stock upon certain events. ON Technology is a provider of advanced solutions for managing and configuring software across corporate networks and the Internet.


http://www.on.com






Webb Interactive Services Obtains $10 Million Financing Commitment



DENVER, Jan. 3 — Webb Interactive Services Inc. (Nasdaq: WEBB), a provider of infrastructure services for local Internet commerce, announced that Marshall Capital Management, a wholly owned subsidiary of Credit Suisse First Boston Inc., committed to lead a $10 million financing that also includes Castle Creek Technology Partners LLC, which is an existing investor in Webb as well. The investment will be in the form of a new class of convertible preferred stock with warrants. Webb Interactive Services is building a business and technology infrastructure to enhance buyer-seller interaction in the local commerce market.


http://www.webb.net






SkyMall Raises $8 Million Through a Private Placement



PHOENIX– SkyMall Inc. (NASDAQ: SKYM) completed the private placement of an $8 million equity transaction with Wand Partners that will be convertible into approximately 1,143,000 shares of SkyMall’s common stock, subject to the prior approval of shareholders, at a price of $7.00 per share; there are no reset provisions in the terms of conversion. In addition, SkyMall issued warrants in connection with the equity transaction to purchase approximately 572,000 shares of common stock. SkyMall is best known for its in-flight catalog, which is available on more than 70 percent of all domestic airlines. Through its skymall.com inc. subsidiary, which operates the skymall.com and skymalltravel.com Web sites, SkyMall offers an expanded selection of products and services to online shoppers and enables other companies to conduct electronic commerce using skymall.com’s merchant solution.


http://www.skymall.com






New $4 Million Investment For AdminiQuest



COLORADO SPRINGS, Colo. AdminiQuest, a Web-enabled full-service outsourcing solutions partner to the insurance industry, closed a $4 million follow-on round of financing, led by GE Financial Assurance. Prior investors Sequel Venture Partners Inc., US Bancorp Piper Jaffray, The Hillman Companies, Greystone Venture Partners and Century Capital Management all participated in the round. GEFA’s interest in AdminiQuest is non-controlling, and its investment entitles GEFA to one seat on AdminiQuest’s board of directors.


http://www.adminiquest.com






CMGI to Acquire ADTECH



ANDOVER, Mass. and FRANKFURT, Germany– CMGI Inc. (Nasdaq: CMGI), a large and diverse network of Internet companies, entered into a binding letter of agreement to acquire an 80+% interest in ADTECH Advertising Service Providing GmbH, a European provider of third-party, independent ad serving and campaign management solutions to both online advertisers and Web publishers. Financial terms were not disclosed. It is intended that after closing, CMGI will contribute its investment in ADTECH to AdForce Inc. (Nasdaq: ADFC). ADTECH will be integrated to lead European operations for AdForce following AdForce shareholder approval and closing of the AdForce / CMGI merger announced on Sept. 20, 1999.


http://www.cmgi.com


http://www.ADTECH.de






Nx Networks Acquires AetherWorks



HERNDON, Va., and WESTBORO, Mass. — Nx Networks (Nasdaq: NTRX), a leader in voice over internet protocol and virtual private networking, acquired AetherWorks Corp., a privately held provider of innovative voice and data, carrier class convergence solutions, including soft switch technology, for the telecommunications industry. Terms were not disclosed. AetherWorks founder, current president and CEO, Jonathan A. Sachs, will join the Nx senior management team as senior vice president of engineering.


http://www.nxnetworks.com






Talk City Acquires Online Market Research Firm



CAMPBELL, Calif.– Talk City Inc. (Nasdaq:TCTY) announced the acquisition of Research Connections Inc., a provider of online market research. RCI’s advanced proprietary technology will combine with Talk City’s full set of interactive community services to create a source of primary market research and analysis of the Internet’s growing population. Talk City’s Research Connections division will be directed by Amy J. Yoffie, RCI’s founder and CEO.


http://www.talkcity.com


http://www.researchconnections.com






RMI.NET Acquires Web Hosting and Dedicated Access Provider



DENVER — RMI.NET Inc. (Nasdaq: RMII), a national e-business solutions company, acquired the assets of ServerCom Inc., a privately held, web hosting and dedicated access service

provider for business customers based in Bloomington/Normal, Ill. The purchase price was approximately $300,000. RMI.NET will relocate its Great Lakes division operations to ServerCom’s web hosting and carrier-class data center.


http://www.rmi.net






Xetal Acquires Sick-bay.com



MELVILLE, N.Y. — Xetal Inc. (OTCBB: XETX), acquired all of the shares of Sick-bay.com Inc., a private Internet health portal. Sickbay.com offers its visitors an array of health-related products and services. The acquisition was effectuated by a stock-swap of more than 80% of the outstanding shares of Xetal Inc. common stock for all of the issued stock of Sick-bay.com Inc. Sick-bay.com management will assume management of Xetal.


http://www.sick-bay.com






The Internet Advisory Corp. Acquires Sunrise Web Development



FORT LAUDERDALE, Fla. — The Internet Advisory Corp. (OTCBB: PUNK) (Frankfurt Symbol: IAS) acquired Sunrise Web Development Inc. for stock. Sunrise Web Development owns an interactive Internet website and Internet browser. The company says it will generate revenues such as online service revenues from subscribers, advertising revenues, E-commerce and transaction fees associated with electronic commerce.


http://www.thepunk.com






Advantage Learning Systems Acquires Web-based Software Developer



WISCONSIN RAPIDS, Wis. — Advantage Learning Systems Inc. (Nasdaq: ALSI), a provider of learning information systems to the K-12 school market, acquired computerActive Inc., an Ottawa, Canada-based software development firm specializing in Web-based applications. The acquisition is expected to accelerate the company’s introduction of Web versions of its school software products as well as providing new product opportunities. Transaction terms were not disclosed.


http://www.advlearn.com






Lycos Takes 14 Percent Stake in iCOMS



NASHUA, N.H. & WALTHAM, Mass — Internet Commerce Services Corp., a commerce applications services provider and Lycos Inc. (NASDAQ: LCOS) entered into a long-term strategic relationship in which Lycos acquired an approximately 14 percent minority stake in iCOMS. iCOMS plans to use the Lycos investment to fund general operations, expand its infrastructure and pursue potential acquisitions. As part of the relationship between Lycos and iCOMS, merchants who use iCOMS services will have access to Lycos visitors when they register as LYCOShop merchants.


http://www.lycos.com


http://www.icoms.com






Who’s Who & Where



Embion Appoints Bill Elliott as CEO



MINNEAPOLIS — Embion Inc., a business-to-business medical e-commerce and information company, appointed Bill Elliott as chairman of the board and CEO. Elliott was most recently president of Bergen Brunswig Medical Corp. and president of intePlex, both wholly owned subsidiaries of Bergen Brunswig with annual sales of $20 billion. Acacia Venture Partners along with U.S. Bancorp Piper Jaffray Ventures recently invested $10 million in Embion.


http://www.embion.com






NetGift Registry Names Fadel as New CEO



DURHAM, N.C.– NetGift Registry, an online gift registry service provider, named Ed Fadel the new chief executive officer of the company. After first creating and coming up with the idea for the company in 1998 and acting as its first chairman, Fadel returns to lead NetGift. In 1998, Fadel founded Fusion Ventures, a seed-stage venture capital fund and full services venture incubator. Fusion Ventures provided seed money to NetGift.


http://www.netgiftinc.com






Respond.com Appoints Dana C. Stalder as CFO



Redwood City, Calif. Respond.com, an online shopping service that connects buyers and sellers, appointed Dana C. Stalder as chief financial officer. Stalder was previously the vice president of finance and operations at Netscape Communications . Respond.com is funded by The Barksdale Group, Benchmark Capital and Hummer Winblad Venture Partners.


http://www.respond.com





Camdens Names Antonio A. Yenidjeian as Chief Technology Officer



NEW YORK — Camdens, an e-commerce services company focused on the corporate and executive gift market, announced that Antonio Yenidjeian has joined the company in the newly created role of vice president and chief technology officer. Yenidjeian joins Camdens from Doubleday Direct, where he held the position of CIO for the publishing arm of the global multi-media corporation Bertelsmann AG. Investment in Camdens is led by [email protected] and ARCH Venture Partners.


http://www.camdens.com






Stephen Klein Joins On2.com Board of Directors



NEW YORK — On2.com Inc. (Amex: ONT), a provider of broadband content delivery over the Internet, announced the addition of Stephen D. Klein to the company’s board of directors. Klein’s career in interactive media and strategic branding and communications includes executive positions at

Grey Advertising and Scali McCabe Sloves (now Lowe & Partners) in New York. He is a founding partner and serves as a managing director of Dawntreader LP; a venture capital fund dedicated to early-stage Internet companies.


http://www.on2.com






Do you think YOUR cool company ought to be featured in a VC Watch column?


Then go here …


http://www.flashbase.com/forms/VCWatch


… and tell us all about yourself.






GET BUZZED!



VC Buzz, that is.

The latest buzz on the daily deals coming down in the femtosecond pace of the Venture Capital world

VC Buzz brings you the latest on who’s gotten their funding and from whom, what’s happening at the VCs and who’s just swallowed whom in the maniacally fast, deadly serious Darwinian scramble for Internet success and dominance.

Don’t get trampled by the herd … stay ahead with VC Buzz, delivered every business day to your e-mail box.

Check it out online or SIGN UP get it delivered FREE every day to your e-mail. When you sign up, scroll down to the “Internet Stocks Channel” subhead and check the VC Buzz box.



News Around the Web