VC Buzz – $230 Million in Today’s Deals

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Avanex,, ComVentures, CoolEmail, Corio,,,, Geocast Network Systems, HotDispatch,, Kanbay, LightLogic, Netera, Neuromedia,, RioPort, SOFTBANK,, Technology Crossover Ventures, Wit Capital Group

 Venture Fund I Portfolio Company Receives $25 Million in Second Round of Funding

WESTPORT, Conn.– Venture Fund I LLC, the affiliated venture arm of Corp. (Nasdaq:INTM), announced that, the first company added to its investment portfolio, has received $25 million in equity financing from the following venture capital firms: C.C. Entertainment Partners (C.C.E.P, a strategic partner of Chase Capital Partners), WaterView Partners, SunAmerica Ventures, Ares Management and individual investor Michael Fuchs. Corp. is also an equity investor in

TCV Invests $130 Million in 14 New Companies in the September Quarter

PALO ALTO, Calif.–Technology Crossover Ventures announced that it invested more than $130 million in fourteen Internet enterprises during the quarter ending September 30. These new investments expand TCV’s Internet portfolio to over 60 companies since the firm’s founding in 1995.

TCV invested in, an ecommerce site focused on art and fine crafts; Inc., a small business destination site, and eSociety Inc., a provider of business solutions to trade associations; several companies in the infrastructure sector, including Advanced Switching Communications, a multi-service access switching systems company; BrightMail an email management solutions company; Cosine Communications, an IP service delivery platform company; eMachines, a provider of value-priced PCs and Internet solutions; iBasis, a voice over IP solutions company; Top Layer Networks, a next generation switching supplier; and Xiotech a storage area networking solutions provider; the spinout of eLoyalty Solutions from its parent, Technology Solutions Corporation; and EXE Technologies, a supplier of eFulfillment solutions.

RioPort Raises $30 Million in First-Round Financing

SAN JOSE, Calif.–RioPort Inc. announced that it has closed $30 million in first-round venture financing and has begun operations as a separate company from S3 Inc. (Nasdaq:SIII), which recently acquired RioPort’s parent company, Diamond Multimedia. Oak Investment Partners and Vulcan Ventures Inc. have provided RioPort with operating capital to further build and proliferate its integrated digital audio platform for the delivery, management and playback of music and spoken audio content.

Avanex Announces Additional Venture Capital Investment

FREMONT, Calif. — Avanex Corp. announced the closing of a $20 million round of venture capital financing. The investment group is composed of Crosspoint Venture Partners, Mayfield Fund, JAFCO America and Sequoia Capital. Avanex develops, manufactures and delivers photonic processors for the communications industry. Raises $16.5 Million in Venture Financing

SAN JOSE, Calif.–, an independent consumer resource for wireless and telecommunications services and products, announced it has raised $16.5 million in a second round of equity financing, bringing the total capital raised in 1999 to $20.5 million. The round was led by Advanced Technology Ventures and Morgenthaler, with participation from the major existing investors, including Information Technology Ventures and J.F. Shea & Company. Receives $5 Million in Second Round

LOS ANGELES —, a leader in online loyalty solutions for businesses, announced that Zone Ventures; Access Technology Partners L.P., an affiliated fund of Hambrecht & Quist; New Millennium Partners; Tim Draper, and Wasatch Venture Fund have invested $5 million in its second round of financing.

Neuromedia Announces Closing of Its Second Round of Financing

SAN FRANCISCO–Neuromedia Inc., a provider of server software for automated, natural language sales and customer service dialog on the Web, announced completion of its second round of financing totaling more than $3.5 million. Funding was led by Convergys(NYSE:CVG), a provider of outsourced, integrated billing and customer management solutions. Other backers of Neuromedia include Silicon Valley’s Band of Angels investment group, Aliant Inc. (TSE:AIT), and private investors.

Netera Acquires Savant

BERWYN, Pa. — Netera, an e-business consulting and information technology solutions company, announced the acquisition of Savant, a Florida based e-business consulting company. The move strengthens Netera’s rapidly growing East Coast presence and adds valuable application development resources to the company. Netera provides clients with a wide range of integrated services and solutions focused on delivering robust, secure and scalable e-business solutions.

Netera has received funding from Miller Capital Management, GTCR Golder Rauner LLC and InterPrise Technology Partners.

Kanbay Acquires Megatec, Australia-based Web Security Firm

CHICAGO — Kanbay Inc., a $50 million global information technology consulting company, has acquired Megatec Pty Ltd, a $15 million Melbourne, Australia-based e-Business products and solutions firm. Kanbay is partially funded by Safeguard Scientifics.

Belo Announces Alliance With Geocast

DALLAS — Belo (NYSE: BLC) announced an alliance with Geocast Network Systems Inc. to provide a new, rich media program service to the desktop PC using Belo’s digital television broadcast signals. This arrangement will allow Geocast to use a portion of Belo’s digital television broadcast spectrum to deliver the new service that combines television-quality video with the customization and interactive features of the World Wide Web.

Belo will make a $10 million equity investment in Geocast. Geocast is backed by Mayfield Fund; Kleiner Perkins Caufield & Byers; and Institutional Venture Partners. Hearst-Argyle Television, Inc. recently announced an alliance with Geocast similar to Belo’s.

Corio Partners with Siebel Systems

REDWOOD CITY, Calif.–Corio, an Application Service Provider, announced a distribution partnership with Siebel Systems Inc., a provider of front office applications. Under the agreement, Corio will sell, implement, remotely host and manage Siebel Systems’ sales effectiveness and customer service solutions, as well as next generation eBusiness applications to high growth, mid-market companies. Siebel Systems will be Corio’s exclusive front office application platform.

Corio is backed by Kleiner Perkins Caufield and Byers and its KPCB Java Fund, PeopleSoft, Integral Capital Partners, Greylock and Norwest Venture Capital.

Wit Capital and enba plc to Establish Pan-European Investment House

NEW YORK/DUBLIN, Ireland– Wit Capital Group (NASDAQ: WITC), a pioneer online investment banking group in the United States, and privately held enba, Europe’s leading provider of Internet-only financial services, announced their intention to combine efforts to establish a Pan-European investment banking firm, to be known as Wit Capital Europe. The joint venture is scheduled to open for business in early 2000, subject to obtaining the required regulatory approvals.

Goldman Sachs owns shares and warrants to purchase shares representing approximately 20 percent of Wit Capital, while Morgan Stanley is an investor in enba. Capital Z Partners, an affiliate of Zurich Re, is both an investor in enba and a pre-IPO investor in Wit Capital. Other venture stage investors in Wit Capital include Draper Fisher Jurvetson, Highland Capital and Mitsubishi Corporation, while enba’s other investors include Apax Partners, CGU, Intel, Invision AG, Aureus and Vertex.

Montclare Technologies Launches New Web Site for SOFTBANK Venture Capital

OAKLAND, Calif.–Montclare Technologies Inc. announced the successful launch and operation of SOFTBANK Venture Capital’s new Web site. The site, introduced during SOFTBANK’s annual conference, is a primary communications vehicle through which SOFTBANK markets its funds and services to investors, potential new startups as well as prospective employees, press and analysts. Launches Quick Answers Website

SAN FRANCISCO– announced the official launch of the first online Knowledge Marketplace to focus on getting quick answers to experts – particularly business leaders. was founded by artist/entrepreneurs Giff Constable, CEO, Jeremy Epstein, Creative Director and Bill Herndon, Chief Architect, and has completed its first round of angel funding.

Association for Financial Professionals and Create Alliance

LOS ANGELES–The Association for Financial Professionals (formerly the Treasury Management Association) announced a strategic alliance with, the first-ever business-to-business e-commerce portal for capital markets. AFP members will benefit from’s free, direct access to sophisticated, powerful analytics and the ability to manage and maintain capital markets investment portfolios that are tailored to their specific needs. The agreement will also provide AFP members with discounts on Premium Member Services, such as sophisticated risk management tools, and will encourage traffic between and the AFP website ( was developed by Integral, a provider of e-commerce infrastructure for capital markets. Integral investors include Accel Partners.

HotDispatch Goes Live

CAMBRIDGE, Mass.–HotDispatch Inc. introduced its Website for web-deliverable technical services. HotDispatch is an on-line service to meet the needs of Java and Linux programmers seeking reliable expertise delivered quickly through a global network of peers incented through financial rewards. It has received financing from venture capital firms NEA and Accel Partners, and angel investors Mitch Kapor and Omar Khudari.

Integretel Helps Mainstream CoolEmail’s Unified Messaging Through Local Phone Bill Payment Options

SAN JOSE, Calif.–Integretel Inc., a provider of billing solutions for the telecommunication and Internet industry, has enabled CoolEmail’s basic unified messaging product, Email-By-Phone, to be billed on the consumer’s local phone bill. CoolEmail, an affiliate of Mediacom Ventures LLC, a private equity investment fund, provides the phone billing method as an enhancement to the convenience offered its customers, who can listen to and send e-mails by telephone.

Who’s Who & Where


E-TRADE Executive Michael Rolnick Joins ComVentures

PALO ALTO, Calif.–ComVentures, a venture capital firm specializing in early-stage communications and Internet infrastructure companies, announced that Michael Rolnick has joined as the firm’s newest general partner. Rolnick comes to ComVentures from his position as vice president for New Ventures at E-TRADE Group. He will be responsible for driving and managing new business opportunities focused on the Internet and E-commerce. Expands News Team in Cape Canaveral and New York

NEW YORK– announced that Florida Today’s Todd Halvorson and CNN’s Robin Lloyd have joined’s news team. Halvorson, former senior aerospace correspondent for Gannett’s Florida Today, has been named’s Cape Canaveral Bureau Chief and Lloyd, former senior writer for CNN Interactive, has been named’s Senior Science Writer based in New York.

Venrock Associates, the venture capital arm of the Rockefeller family, is providing equity backing for as is private venture capital firm Greylock.

John D. McGraw Joins LightLogic as President and Chief Executive Officer

SANTA CLARA, Calif.–LightLogic Inc. announced that John D. McGraw accepted the position of president and chief executive officer effective immediately. Prior to joining LightLogic Inc. McGraw served as senior vice president of the Electronics OEM Components Division at Raychem Corp., Menlo Park, Calif.

LightLogic Inc. received two rounds of funding from venture capital firms including Bessemer Venture Partners, Siemens’ Mustang Ventures, Information Technology Ventures, Ridge Ventures, Viventures, and Dessault Development. Taps Jim Garcia as VP Technology and Operations

SAN JOSE, Calif.–Continuing the recently announced centralization of the company business to San Jose, California, has named Jim Garcia as vice president of technology and operations. is a business-to-business Internet-based trading exchange and marketplace for the electronics parts industry. Prior to joining he was Director of Hotel Network Operations for On Command Corp. The company is backed by Draper Fisher Jurvetson, SoftBank Technology Ventures and Gabriel Capital.

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