New in the News
Apex Learning, Ashford.com, DailyShopper.com, DVD EXPRESS, GroceryWorks, Home Director, IT Utility, MMT Computing, Net-mercial.com, Netpliance, Ninth House Network, OnlineChoice, ServiceMagic.com, SiteLine, TravelNow.com, WealthMetrics.com, White Pine Software
GroceryWorks Completes $48.5 Million in Financing
DALLAS — GroceryWorks, a Dallas-based online home fulfillment business specializing initially in high-quality grocery delivery, completed its first round of venture capital financing totaling $48.5 million. The Sprout Group, the venture capital affiliate of Donaldson, Lufkin & Jenrette Inc. (NYSE:
DLJ), led the group. Other contributing firms included Enterprise Capital Partners, J.P. Morgan Investment Bank, Blue Rock Capital Partners and a group of private investors headed by Dallas-based Carl Wescott. The company named former Electronic Data Systems Corp. vice chairman Gary J. Fernandes as its president and chief executive officer.http://www.groceryworks.com
http://www.sproutgroup.com
http://www.bluerockcapital.com
http://www.jpmorgan.com
Ninth House Network Announces $40 Million Second Round Funding
SAN FRANCISCO – Ninth House Network, a broadband media network for e-learning, raised $40 million in second round equity funding. The funding was led by Chase Capital Partners and included Merrill Lynch, the Meta Group, Hambrecht & Quist, W. R. Hambrecht, Arena Capital and others. Ninth House Network created an
interactive, personalized, and cinematic e-learning solution. Through a combination of storytelling, instant advice from personalized virtual mentors and Hollywood-style role-playing adventures, employees can rehearse real-world business skills and build critical business and communication skills.
http://www.ninthhouse.com/
http://www.chasecapital.com
SiteLine Acquires inBuilding Systems and Closes Second Round of Financing
CHICAGO — SiteLine, a provider of AccessReady building-centric data services, acquired inBuilding Systems of San Diego, Calif., a provider of enhanced high-speed Internet services for the building-centric market. With the inBuilding acquisition, SiteLine will significantly expand its footprint throughout the West Coast, including cities such as San Diego, Los Angeles, San Francisco, and Seattle. SiteLine also completed its Series C preferred equity financing, raising more than $42 million in growth capital during the past six months. Investors for the Series C round include Edgewater Funds and an affiliate of Insignia Financial Group (NYSE:
IFS).http://www.accessready.com
$20 Million Equity Infusion for Apex Learning
BELLEVUE, Wash.– Apex Learning Inc, formerly known as Apex Online Learning, raised $20 million in a new round of equity financing led by Warburg, Pincus Equity Partners L.P. Investors include Maveron Equity Partners, Vulcan Ventures Inc., and Kaplan Inc. In conjunction, the company also received $5 million in additional equity financing from Edison Schools Inc., representing the second phase of Edison’s previously-announced $10 million investment. Apex Learning is a provider of online curriculum products for high achieving students in K-12 education. Apex Learning was founded by Paul Allen with funding from Vulcan Ventures.
http://www.ApexLearning.com
http://www.maveron.com
http://www.paulallen.com
White Pine Receives $20 Million Private Placement
NASHUA, N.H.– White Pine Software Inc. (NASDAQ:
WPNE) received $20 million in gross proceeds in late December 1999 from private placements of its common stock with an affiliate of GE Capital and three other investors. White Pine sold 325,521 shares of common stock to each of CFE Inc., an affiliate of GE Capital; Altamira Management Ltd., on behalf of three mutual funds for which it acts as investment advisor; Private Equity Holding (Cayman) Ltd., an investment company managed by the Vontobel Group; and the Special Situations Funds. The shares were sold at a price of $15.36 per share, which was the 30-day weighted average closing price of the common stock at the date the terms of the financings were negotiated. White Pine develops software solutions that facilitate worldwide video and audio communication and data collaboration across the Internet.
http://www.wpine.com
ServiceMagic.com Garners $12 Million in Financing
GOLDEN, Colo.– ServiceMagic.com, formerly Wisen.com, an online connection for consumers and qualified local service providers, completed $12 million in funding from Sequel Venture Partners, SOFTBANK Venture Capital, and Tango Group. ServiceMagic.com uses a proprietary technology to match a consumer’s request for local home services to a network of qualified, interested local service professionals. Service Magic currently addresses over 240 different common home service needs from simple home repairs and maintenance to complete home remodeling projects.
http://www.servicemagic.com
http://www.sequelvc.com
http://www.sbvc.com
TravelNow.com Receives Equity Infusion
SPRINGFIELD, Mo.– TravelNow.com Inc. (OTCBB:
TNOW) received a $4.5 million equity infusion from Tudor Investment Corp. of Boston. Tudor purchased 500,000 new restricted convertible preferred shares from TravelNow at $9.00 per share. TravelNow is an Internet-based travel services company.http://www.travelnow.com
THCG and THCG Venture Partners I Acquire 33% Stake in IT Utility
NEW YORK– THCG, INC. (NASDAQ:
THCG) acquired a 33% stake in IT Utility, an Internet-based total solution provider / application service provider company. IT Utility Inc., based in Atlanta, Georgia, offers a complete, Internet-based, thin-client, server-centered information systems outsourcing service to small and mid-size companies. THCG arranged for approximately $2.3 million of capital for an approximate 23% ownership stake in IT Utility. In addition, THCG, which provided IT Utility with its initial seed capital, will provide IT Utility with an array of venture development and venture banking services, for an approximate 10% ownership stake in the company.http://www.thcg.com
Net-mercial.com Receives Funding From Bear Ventures
SPRINGVILLE, Utah — Net-mercial.com, developers of interstitial advertising products, completed its first round of funding from Bear Ventures. Terms were not disclosed. The company’s first product, called a Net-mercial, impacts e-commerce, Web advertising, revenues and benefits for Web sites, and consumer control of ads.
http://www.net-mercial.com
DailyShopper.com Finalizes Investment From Madrona Venture Group
SEATTLE — DailyShopper.com, an online guide to offline shopping, finalized its first round of Series A financing with a major investment from Madrona Investment Group. DailyShopper.com officials did not disclose the amount. Initially launched in Seattle, DailyShopper.com now serves 18 markets across the country, including New York, Los Angeles and San Francisco, with plans to be operating in over 30 major markets by early spring of 2000.
http://www.DailyShopper.com
http://www.madronagroup.com
Home Director Launched as Independent Company
LAS VEGAS– Home Director Inc. and Spencer Trask Intellectual Capital Company announced that the former IBM Home Networking Solutions unit has been launched as an independent company dedicated to delivering state-of-the-art home networking systems to the consumer marketplace. Home Director is financed by Spencer Trask Intellectual Capital Company and also maintains a connection to its former company, IBM, which retains an equity stake in the venture. In addition, Home Director will continue to market its products under the IBM brand.
http://www.ibm.com/homedirector
http://www.spencertrask.com
Second Round Funding of OnlineChoice
PITTSBURGH– OnlineChoice announced that Duquesne Enterprises, Lycos Ventures, and Draper Triangle Ventures provided a second round of funding for the Internet start-up company, which pools customers to maximize buying power using a reverse auction among the suppliers of essential home services. OnlineChoice’s first buying pool website is www.ElectricityChoice.com. The company is about to launch GasChoice.com and is developing buying pool sites for telephone service, Internet access, and home security systems.
http://www.OnlineChoice.com
SS&C Takes Stake in New Internet Venture
WINDSOR, Conn.– SS&C Technologies Inc. (Nasdaq:
SSNC) announced that the company has invested in start-up Internet venture WealthMetrics.com Inc., founded by former SS&C senior vice president, Robert C. Shepro. WealthMetrics.com will provide web-based financial software applications to high-net worth investors and their professional financial advisors. Shepro will continue in a consulting role with SS&C focusing on product strategy.http://www.ssctech.com
Internet Fact of the Day
Cahners In-St
at Group projects that the home networking market will grow 60%, to $1.4 billion by 2003, while the Yankee Group says that by 2003, there will be 10 million internally networked U.S. homes.
Ashford.com to Acquire Jasmin.com
HOUSTON — Ashford.com (Nasdaq:
ASFD), an Internet retailer of luxury and premium products, will acquire Jasmin.com, an e-commerce site specializing in prestige fragrances. The addition of Jasmin.com is intended to help Ashford.com’s rapidly growing fragrance business become the leading provider of fine fragrances on the Internet. Terms of the deal were not disclosed.http://www.ashford.com
http://www.jasmin.com
MMT Computing Acquires Web Site Design Company
LONDON — MMT Computing plc, an IT services and specialist software products group, acquired Hypnosis Media Ltd for a maximum consideration of £2.5m ($4 million). London-based Hypnosis specialises in building web-sites for a wide range of clients. Initially the business focused on the music industry, but has moved on to develop sites for a more diverse client base. The initial consideration is £400,000 in cash with the deferred consideration of £2.1m being paid over the next four years subject to the achievement of agreed profit targets. The deferred consideration will be satisfied by MMT shares at the then prevailing price. The company will be renamed MMT Computing (Hypnosis) Limited.
U S WEST Takes Equity Stake in Netpliance
AUSTIN, Texas — Netpliance, a consumer Internet appliance services company, announced that U S WEST (NYSE:
USW), which already provides Web access over televisions and telephones, will take a minority equity stake in the company. Under the terms of the agreement, U S WEST will assume a position on Netpliance’s board of directors. The investment is also expected to lead to a strategic relationship for the distribution of Netpliance’s i-opener, a consumer Internet appliance solution that gives consumers instant access to the Internet, email and a personalized portal.http://www.netpliance.com
http://www.uswest.com
DVD EXPRESS and Maximum Holdings Complete Merger
LAS VEGAS– DVD EXPRESS Inc. and Maximum Holdings Inc. announced the merger of both companies, which will initially retain the DVD EXPRESS (www.dvdexpress.com) name. The new company has acquired the URL www.express.com and plans to launch the new brand in first quarter 2000. Immediately before the merger, Eidos PLC (Nasdaq:
EIDSY), a developer and publisher of entertainment software, announced an investment of $55 million in Maximum. Eidos also entered into a strategic marketing relationship with Maximum to promote its popular Internet properties
http://www.dvdexpress.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.