VC Buzz – $249.28+ Million in Today’s Deals

New in the News

1st,,, fourthchannel, Greg Manning Auctions, Health Hero Network,, LSI Logic,,, NaviMedix, NetVendor, Orbit Capital,,, ProSight, RealTimeImage,,, StorageNetworks,, Thoughtstar,,

Deal News

StorageNetworks Raises $103 Million in Strategic Third-Round Funding

WALTHAM, Mass.– StorageNetworks Inc., a storage services provider, completed a third round of funding totaling $103 million. This brings the company’s total funding to $205 million since its incorporation in August 1998. Lead investors Dell Computer Corp. (NASDAQ: DELL) and Global Crossing Ltd. (NASDAQ: GBLX) are equal participants in this round. Secures $30 Million in Funding

EVANSTON, Ill.– OurH, a web site for home improvement, home services, and how-to information, closed $30 million in new debt and equity financing. Launched in December 1999, previously received $20 million of venture funding, as well as five million dollars in initial financial backing from bricks and mortar retail giant Ace Hardware. The recent funding is from Comdisco Ventures, Transamerica Technology Finance and Relational Funding Corp.

NaviMedix Secures $20.2 Million in Private Financing

BOSTON– NaviMedix Inc., a provider of Web-based solutions for streamlining communication between physician offices and other healthcare organizations, completed a $20.2 million private financing. GE Equity, Hearst Business Publishing and Coral Ventures funded the latest financing round with existing investors Atlas Venture and North Bridge Venture Partners, which provided additional funding in this round. NaviMedix’s NaviNet Web application replaces the paper-based transactions between healthcare organizations and physician offices with an online system that includes claims submission, claims status inquiry, eligibility verification, electronic referral and authorization processing, and formulary management. Completes $20 Million Mezzanine Round

SAN CARLOS, Calif. —, a provider of outsourced e-commerce solutions, raised $20 million in a mezzanine round of financing. The new round was led by entities affiliated with Draper Fisher Jurvetson ePlanet Partners. Existing investors Draper Fisher Jurvetson, Graystone Ventures, Gruber McBaine Ltd., Seligman Technology Group, Sevin Rosen Funds, U.S. Trust and Wheatley Partners participated. New investors included Harron Capital LP, Redwood Asset Management, Silicon Valley Bank, Venture Management Associates and entities controlled by Diserio Capital Management LLC. Asad Jamal, a managing director of Draper Fisher Jurvetson ePlanet Partners, will join the board of directors. The company enables the marketing, sales and delivery of digital goods through a comprehensive line of e-commerce services, including online store creation and operation, transaction processing, digital downloads, e-marketing and e-merchandising.

Greg Manning Auctions to Receive $16 Million Equit

y Financing

WEST CALDWELL, N.J.– Greg Manning Auctions Inc. (NASDAQ: GMAI) announced a private equity financing of common stock that will total $16 million. The funding, which will take place in two tranches, will be led by the Tail Wind Fund Ltd., a worldwide investor in emerging growth companies. An affiliate of a Wall Street investment banking firm will be a co-investor. Greg Manning Auctions is a leader in the on-line auctions and on-line retail sale of collectibles. Secures $12.2 Million

SINGAPORE– Singapore auction & classifieds website,, announced its first round of funding of S$20.7 million (US $12.23 million), one of the largest first rounds of financing in Asia to date. Financing was secured from: Lycos Asia, a leading portal in the region;, a large online auction company in Europe;, established by the original founders of AsiaContent and Interwoven; OCBC, Wearnes & Walden Management, a blue chip VC with funds invested in private companies within South East Asia, Greater China and the United States.

NetVendor Receives $12 Million in Additional Funding

ATLANTA — NetVendor Inc., a provider of business-to-business e-markets for suppliers and their customers in the industrial, electronic and automotive markets, completed a $12 million second round of financing. Major backers include Internet Capital Group (Nasdaq: ICGE) and Wheatley Partners, which also funded NetVendor in its first round of funding. New investors include RRE Ventures, Acorn Technology Fund LP, and The Heico Companies, in addition to a number of individual investors.

ProSight Secures $10.6 Million in Growth Capital

PORTLAND, Ore. — ProSight Inc., a provider of solutions for IT Management secured $10.6 million in a Series C round of financing. ProSight was founded a year ago and received its initial seed funding from the BRM Group, an Internet Infrastructure-focused venture firm. Prism Opportunity Fund is the lead investor of this round of funding. Sequoia Partners and the BRM Group contributed to this round.

RealTimeImage Closes on $8 Million in Second Round Venture Funding

SAN MATEO, Calif.– RealTimeImage, a provider of Internet-based imag

ing products for the graphic arts and medical communities, closed on an $8 million second round of financing. The round was led by the Intel 64 Fund and included Citicorp International Finance Corp. and ComSor. Initial investors TDA Capital Partners Inc., THCG Inc., and Newbury Ventures also participated in the round Completes Financing Round

OTTAWA– Inc., a manufacturer and supplier of Linux-based Internet server appliances, completed a private round of financing, raising CDN $9 million (US $6.28 million). Lands First-Round Financing

SAN FRANCISCO — received $6 million in first-round financing led by Mayfield Fund with additional backing from Trident Capital. is building an e-commerce hub for the marine community. In other news, reached agreement with The Cobalt Group (Nasdaq: CBLT) to acquire, a popular online yachting marketplace wholly owned by Cobalt. Raises $4.6 Million In First Round

NEW YORK —, an e-commerce destination and online community focused on helping people lead a more balanced life, raised $4.6 million in venture capital from Liberty Venture Partners, Cardinal Health Partners, P.S. Capital, WT Holdings and WiseBear co-founders Kay Koplovitz and Cris Popenoe. The Web site, launching in May, will provide content and advice on wellness and personal growth as well as sell books, videos and music, wellness gear and accessories, spa products, educational materials and travel packages.

Thoughtstar Closes Additional Round of Private Funding

SALT LAKE CITY– Thoughtstar, an online team collaboration solution provider and Web portal market innovator, received a $400,000 investment from JapanWorks Co. LLC, a Provo, Utah-based company that facilitates investment and strategic relationships between U.S. and Japanese technology companies. JapanWorks also has an office in Tokyo. The investment from JapanWorks brings the total private funding

raised for Thoughtstar to more than $2 million. Thoughtstar is the creator of QuickTeam (, a Web-based team collaboration portal that provides the tools and services necessary to collaborate on, communicate about and contribute to ingoing team projects. Receives Venture Capital Funding

BOSTON —, which provides Internet-based print management solutions for the commercial print industry, secured a round of venture capital funding from Claflin Capital, Reach Venture Partners, and Barney Corning of Corning Capital. improves the communication and relationship between print buyers and print suppliers by automating existing manual and paper-based processes. Receives Funding From the Internet Roundtable

NEW YORK– announced that personal shopping community received funding from the Internet Roundtable, a network of investors composed of Internet company founders and executives as well as venture capitalists. This is the first private equity financing using’s technology powered by TRADE.COM, a service of BlueStone Capital Partners LP. is a personal shopping website that has developed a proprietary online marketplace where sellers respond to shoppers’ service or product requests. Secures Bridge Financing

MINNEAPOLIS–, a company that develops, hosts and manages customer branded Internet pharmacies for health companies and health focused Web sites, completed a round of bridge financing. Participants include several angel investors, management and the following strategic partners/vendors: Risdall Linnihan Interactive, a Minneapolis-based Web development company; Haberman & Associates, a Minneapolis-based technology public relations firm.

Adecco SA Invests in

DALLAS and CHESEREX, Switzerland– Adecco SA, a world leader in employment services, announced a strategic investment in Inc., a fast growing destination in on-line recruitment. Adecco SA is acquiring approximately five percent of equity in and is taking a seat on the board of directors. the North American subsidiary of Adecco SA will be posting job listings on recently redesigned website. recently received $72 million in funding from ideaLab Capita

l Partners and CBS.

Reshuffling News

CBQ Acquires 1st for $80 Million

ADDISON, Texas and HASBROUCK HEIGHTS, N.J.– CBQ Inc. (OTC BB:CBQI) will acquire 51% of the stock of 1st in an exchange involving $80 million dollars worth of common stock in CBQ. As part of the transaction CBQ will also acquire the following Internet companies: 1st inhealthstore Inc., 1strxplus Inc., fitnessbiz Inc, stareyes Inc. and contactlensstore Inc. 1st inhealth has a nationwide network of over 500,000 participating health, nutrition, and fitness providers including over 250,000 physicians who have agreed to accept the 1st inhealth card for payment for 1st inhealth card members.

Fund News

LSI Logic Forms $50 Million Venture Fund to Invest in Communications Technologies

MILPITAS, Calif. — LSI Logic Corp. (NYSE: LSI) announced the formation of a $50 million venture fund to invest in promising start-ups and emerging technologies to expand LSI Logic’s position in the global communications market. Communications is the fastest growing sector of LSI Logic’s business. The investments will focus on targeted communications applications including wireless, networking, broadband, and Internet infrastructure.

Who’s Who & Where Makes New Appointments to its Management Team

OREM, Utah — Inc., a company dedicated to connecting and strengthening families through the World Wide Web, announced the appointment of L. Gregory Ballard as chief executive officer and Peter W. Clark as chief financial officer. Before joining, Ballard served as the president and CEO of 3dfx Interactive. Clark was vice president of finance and administration of ZING. Investors in include CMGI’s (Nasdaq: CMGI) affiliated venture capital arm @Ventures, AOL, Compaq Computer Corp., Tango, Group Arnault, Pivotal Asset Management LLC and Amerindo Investment Advisors. Appoints CEO

ARDSLEY, N.Y.–, a global online exchange for business surplus, named George Samenuk as president and chief executive officer. Samenuk most recently served as general manager of the $40 billion IBM Americas

unit, and was a member of IBM’s Worldwide Management Council. recently closed a $22 million financing round.

Health Hero Network Appoints James McKinley COO

MOUNTAIN VIEW, Calif. — Health Hero Network Inc., an e-health company focused on developing innovative solutions to improve the exchange of information between care providers and patients, appointed James McKinley as chief operating officer.

Most recently McKinley served as president and CEO of NuVasive, a medical device company. Health Hero Network secured $18 million in venture capital financing lead by Psilos Group and Oracle Strategic Partners in November 1998.

fourthchannel Recruits William Tanner as Chief Financial Officer

COLUMBUS, Ohio — fourthchannel Inc., an Internet commerce application software and service provider, appointed William Tanner as the company’s CFO. Before joining fourthchannel, Tanner was executive vice president and chief financial officer of SalesSoft. fourthchannel received funding in June 1999 led by River Cities Capital Funds.

Orbit Capital Names New Execs

NEW YORK — Orbit Capital Corp., an Internet Incubator and venture capital firm, appointed Joyce R. Yune as senior vice president and Curtis C. Ehrgott as chief technology officer. Yune most recently was director and head of Mergers & Acquisitions at PricewaterhouseCoopers LLP in Moscow. Ehrgott was vice president of information technology and chief information officer for Greenwich Associates. Orbit Capital is an affiliate of the Orbitex Group, a global financial services company and international investment. Orbit Capital provides development-stage dot com ventures with financial and management capital, as well as operational, marketing and strategic planning resources.

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