VC Buzz – $157.2+ Million in Today’s Deals

New in the News



2order.com, Arthur Andersen Ventures, ETour, Greenlight.com, HomePoint, Internosis, Legal Anywhere, mylackey.com, NetClerk, Optical Networks, Servicesoft Technologies, StreetFusion, workz.com







Deal News



Optical Networks Raises $75M



SAN JOSE, Calif.– Optical Networks Inc., a Silicon Valley-based optical networking system provider, received an additional $75 million in funding from strategic partners and financial institutions, bringing its total to $125 million to date. Bowman Capital Management was the lead investor. Other investors include: Amerindo Investment Advisors, Integral Capital, J. & W. Seligman and Mohr, Davidow Ventures. Strategic partners investing in this round include: Brocade Communications Systems, Juniper Networks (Nasdaq:JNPR), E-TEK Dynamics (Nasdaq:ETEK), and Williams Communications (NYSE:WCG).


http://www.opticalnetworks.com


http://www.bowmancapital.com


http://www.mdv.com






Servicesoft Technologies Receives $32 Million in Additional Financing



NATICK, Mass.– Servicesoft Technologies Inc., a provider of Internet Customer Service software, closed a round of financing valued at $32 million. Led by Goldman Sachs & Co., new investors Morgan Stanley Dean Witter & Co. and Itochu join repeat investors JL Albright, CIBC Capital Partners, Sofinov, Internet Capital Group and Sigma Partners in fueling Servicesoft’s growth in the eService market.


http://www.servicesoft.com


http://www.msvp.com


http://www.jlaventures.com


http://www.cibc.com


http://www.sigmapartners.com






ETour Raises $25 Million



ATLANTA — eTour Inc., a Web surfing guide that automatically connects users with Web sites that match their personal interests, expanded its investor base with a new round of funding. The company raised $25 million in new investments from a consortium representing radio interests and private investors, as well as additional funding from NeoCarta Ventures. eTour.com is a free, member-based service that connects people directly with Web sites that interest them, allowing them to explore the Web without searching.


http://www.eTour.com






StreetFusion Secures Over $14 Million in Series A Financing



SAN FRANCISCO — StreetFusion closed its first round of financing totaling approximately $14 million. Investors in the round include Woodside Fund, Blue Chip Venture Company, Blackstone Technology Partners and WI Harper Group. StreetFusion has invested over $10 million to date in building a platform to enable the secure, accurate and targeted exchange of information between public companies and the financial community. The company has conducted over 2,000 webcasts this earnings season.


http://www.streetfusion.com


www.woodsidefund.com


www.bcvc.com






NetClerk Raises $10M in Second Round Financing



SOUTH SAN FRANCISCO, Calif.– NetClerk Inc., a provider of web-based business services for the build & repair subcontracting industries, received $10 million in venture capital financing. This second round of funding was co-led by H&Q Venture Associates and Adobe Ventures, and included Wheatley Partners, Integral Capital Partners, Osprey Ventures, and Angel Investors LP.


http://www.netclerk.com


www.hqva.com






mylackey.com Receives $1.2 Million in Financing



SEATTLE– mylackey.com, a new way to do errands, chores and more — online, closed on $1.2 million in its Series B Preferred Stock financing, led by Vault Capital and other local angel investors. Consumers can order, schedule and pay for time-saving mylackey.com services such as car detailing, dry cleaning, laundry services, housecleaning, onsite massage therapy, errands and more through the secure e-commerce site in just a few clicks.


http://www.mylackey.com






Winfield Capital Invests in HomePoint



WHITE PLAINS, N.Y.– –Winfield Capital Corp. (Nasdaq: WCAP) closed an equity investment in HomePoint Corp. of Greenville, South Carolina. Terms of the investment were not disclosed. HomePoint is a business-to-business distributor and marketer of home furnishings on the Internet.


http://www.homepoint.com






Reshuffling News



Intelligent Systems Sells Stake in 2order.com to Primus



NORCROSS, Ga. — Intelligent Systems Corp. (Amex: INS) sold one of its portfolio companies, 2order.com Inc., to Primus Knowledge Solutions Inc. (Nasdaq: PKSI) in a merger transaction valued at $90 million in total. Primus is a provider of eService software and services and 2order.com Inc. is a provider of eSales solutions. Intelligent Systems was an early stage minority investor in 2order.com.


http://www.intelsys.com


http://www.primus.com






workz.com Acquires Banner Tips



SEATTLE — workz.com acquired Banner Tips, a Web site that teaches small businesses how to improve their own Web site’s banners and increase site traffic. The terms were not disclosed. workz.com is a one-stop, online resource for small-business owners wanting to market, manage and maximize the capabilities of their Web sites. Banner Tips is a Web site and monthly e-zine dedicated to the study of banner-related topics including banner advertising, banner link exchanging and click-through ratios.


http://www.workz.com


http://www.bannertips.com






Niku to Acquire Legal Anywhere in Equity Deal Valued at $10 Million



REDWOOD CITY, Calif. — Niku Corp., a provider of Internet solutions for sourcing, management and delivery of professional services, agreed to acquire Oregon-based Legal Anywhere Inc. in an equity deal valued at $10 million. Legal Anywhere Inc. is a provider of intranet and extranet solutions to law firms


http://www.niku.com






Amazon.com and Greenlight.com Announce Strategic Investment and Promotional Agreement



SEATTLE– Amazon.com (Nasdaq:AMZN) agreed to acquire a stake in Greenlight.com, an online car buying company with a network of premiere auto dealers. Amazon.com agreed to acquire 5% of the outstanding shares of Greenlight.com. In addition, Amazon.com will help introduce Greenlight.com to Amazon.com’s more than 16 million experienced online shoppers, and, in return, Amazon.com will receive $82.5 million over five years and receive warrants to increase its stake to as much as 30% over the five years. Greenlight.com is backed by Kleiner Perkins Caufield & Byers and Asbury Automotive, a large private network of national auto dealerships, backed by Ripplewood Holdings and Freeman Spogli.


http://www.greenlight.com


http://www.amazon.com






Division of Corporate Software & Technology Becomes Internosis in $30 Million Transaction



ARLINGTON, Va.– General Atlantic Partners completed the buyout of the Technology Services Division of Corporate Software & Technology Inc. to form a new company that will provide advanced software and IT solutions. The new company, named Internosis, will be owned by General Atlantic Partners and the company’s employees. The transaction represents a $30 million commitment by General Atlantic Partners.





Fund News



Arthur Andersen Establishes New $500 Million Venture Fund



SAN DIEGO– Arthur Andersen announced its establishment of Arthur Andersen Ventures, initially a $500 million venture fund to provide equity financing of advisory and outsourcing services to early stage companies focused on business-to-business commerce, new media, and internet based services. Arthur Andersen Ventures has formed a strategic partnership with U.S. Venture Partners. As part of the relationship, the portfolio companies of U.S. Venture Partners will have access to Arthur Andersen’s range of services and the firm’s global distribution network.

Arthur Andersen also announced a new internet venture to leverage the value of intellectual property assets. In partnership with Lend Lease IT&T Investments (Australia), and the ICM Group, an intellectual capital management consulting firm, this business-to-business venture will provide a broad range of capabilities to manage intellectual property assets.


http://www.arthurandersen.com






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