VC Buzz – $333+ Million in Today’s Deals


New in the News



Agency.Com, AppGate, Ask Jeeves, Away.com, bigchalk.com, BuildNet, Business Engine Software, CarDay.com, CareThere.com, CarParts.com, CMGI @Ventures, CMGI Asia, Collabria, CoSine Communications, EchoPass, ECOM Worldwide, iAsiaWorks, IFILM, internet.com,
Mslide, MongoMusic, Netzip, Polaris Venture Partners, RedFlag, TeamOn.com, TransJet.com, USBid, Virtual China, Webridge, WorldStreet, Yclip.com







Deal News



bigchalk.com Debuts With $55 Million First Round of Venture Financing



NEW YORK– bigchalk.com Inc., a new Internet education company dedicated to supporting the entire K-12 learning community on the Web, closed a $55 million first round of financing. The round was led by a joint venture of Goldman Sachs Capital Partners II and Blumenstein/Thorne Information Partners II. Also participating in this round were Patricof & Co. Ventures Inc. and Core Learning Group LLC. The compan

y was formed when Infonautics Inc. and Bell & Howell Company agreed to combine their K-12 education business units.


http://www.bigchalk.com


http://www.goldmansachs.com


http://www.patricof.com






Collabria Secures Funding in Excess of $46 Million



MENLO PARK, Calif.– Collabria Inc., provider of an e-business solution for the printing and publishing industry, secured more than $46 million in investment funding. Leading this round of funding is ABS Ventures, with additional funding from Charter Ventures, Comdisco Ventures, Mitsui Corp., Sands Brothers and several private investors. Original investors Bessemer Venture Partners, Weiss, Peck & Greer and Internet Capital Group have also increased their investment in Collabria. Collabria’s service-based system enables print buyers, printers and print resellers to conduct all aspects of e-business via the Internet.


http://www.collabria.com


http://www.abscapital.com


http://www.charterventures.com


http://www.comdisco.com






CarParts.com Completes $42 Million Second Round Equity Financing



SANTA MONICA, Calif.– CarParts.com, an auto parts e-tailer, closed its second round of funding, $42 million, which was led by Rho Management and @Ventures, the affiliated venture capital arm of CMGI (Nasdaq:CMGI). New investors Barnard & Co. and Investor AB Group joined previous investors Brand Equity Ventures, St. Paul Venture Capital and Ravenswood Capital. CarParts.com than 1.5 million automotive products from nearly 500 major brand names.


http://www.carparts.com


http://www.ventures.com


http://www.rhomanagement.com


http://www.brand-equity.com


http://www.stpaulvc.com


http://www.ravenswoodcapital.com


http://www.investor.se






IFILM Secures $35 Million Investment



SAN FRANCISCO — IFILM, an Internet resource for film fans, filmmakers, and film industry professionals, closed $35 million in additional financing from Sony, Vulcan Ventures, Eastman Kodak, Liberty Digital (Nasdaq: LDIG) and Shamrock Capital Advisors Inc. The strategic group was joined by IFILM’s vice chairman and first investor, CNET co-founder Kevin Wendle, who substantially increased his investment in the company. IFILM recently acquired Lone Eagle Publishing, a source of professional and educational information for and about the entertainment industry.


http://www.ifilm.com


http://www.spe.sony.com


http://www.paulallen.com






Hometown Auto Retailers New Internet Business Obtains $25 Million Financing



WATERTOWN, Conn. — Hometown Auto Retailers Inc. (Nasdaq: HCAR) announced that its Internet subsidiary, CarDay.com, received approximately $25 million from Goldman Sachs, Odeon Capital Partners, Sierra Ventures, and Citigroup Investments. CarDay.com is Hometown’s Internet-based car auction site. As a result of the new financing, Hometown’s interest in CarDay is now at approximately 15% and it will no longer be required to report start-up losses at CarDay as a part of its operating results.


http://www.hometownautoretailers.com


http://www.carday.com


http://www.goldmansachs.com


http://www.odeoncapital.com






EchoPass Agrees to $22.7 Million in Venture Capital Financing



AMERICAN FORK, Utah — Sento Corp. (Nasdaq: SNTO) announced that New Enterprise Associates and Canaan Partners executed an agreement in principle to participate in the first round of financing for EchoPass Corp. in a combined amount totaling approximately $22.7 million. The first round of funding for EchoPass is expected to close in February 2000 and EchoPass expects additional financing to be announced at that time. In October 1999, Sento formed EchoPass as an independent Internet technology company. Sento contributed its integrated voice and Internet customer care technology and related assets in exchange for preferential rights to use the technology, 47 percent of the new company’s stock and a promissory note for approximately $900,000.


http://www.sento.com


http://www.echopass.com


http://www.canaan.com


http://www.nea.com






First Data Makes Equity Investment In Yclip.com



ATLANTA and AUSTIN, Texas — First Data Corp. (NYSE: FDC), a leader in electronic commerce and payment services, has taken an equity position in Yclip.com Inc., an Internet advertising technology and information systems company. The First Data investment represents an interest of approximately 16 percent in Yclip.com. In conjunction with the First Data investment, Yclip.com closed on a $22 million round of new financing led by Oak Investment Partners and Gregory & Hoenemeyer Inc., bringing the total investment to $29 million.


http://www.firstdatacorp.com


http://www.yclip.com


http://www.oakinv.com






Webridge Raises $22 Million Mezzanine Funding Round



PORTLAND, Ore.– Webridge Inc., a supplier of enterprise eBusiness application software, closed a mezzanine round of venture funding totaling $22 million. Led by Meritech Capital Partners, the new funds enable Webridge to continue marketing and sales expansion worldwide. Earlier-round investors Sevin Rosen, Worldview Technology Partners, Olympic Venture Partners, and Intel also participated in this round. Webridge Express solutions use a customizable object-oriented transactional framework.


http://www.webridge.com


http://www.meritechcapital.com


http://www.srfunds.com


http://www.worldviewtp.com


http://www.ovp.com






ECOM Worldwide Secures $15 Million in Venture Capital



OMAHA– ECOM Worldwide, a provider of business-to-business e-commerce solutions, acquired $15 million in venture funding. Existing investors that contributed additional capital include Campfire Family LLC, Burns Capital LP and Stolberg Equity Partners LLP. New investors include Greenhill E.W. Holdings LLC, Thompson Clive Venture Capital, Benjamin Rosen, Tucci G.N. Investment Trust, The Affiliated Companies and Stanford University. ECOM Worldwide’s solution, known as the Integrated Information Exchange IIE, allows companies to exchange critical business information with thei

r partners and customers without the investment in expensive hardware and software solutions or the adoption of standard data formats.


http://www.ecomworldwide.com






TeamOn.com Secures $14 Million in Second-Round Financing



SEATTLE– TeamOn.com Inc., a new e-services company for growing businesses, completed a $14 million in second-round financing, led by Internet Capital Group and Madrona Venture Group. TeamOn.com’s business-focused service, scheduled to launch in February, integrates Web-based professional e-mail solutions with customer-interaction management capabilities. Internet Capital Group’s managing director Sam Jadallah will join TeamOn.com’s board of directors.


http://www.TeamOn.com


http://www.icg.com


http://www.madronagroup.com






CareThere.com Raises Capital to Develop Online Solution For Family Caregivers



REDWOOD CITY, Calif. — CareThere.com, a comprehensive online resource for family caregivers, closed on $14 million in equity capital from ComVentures, Johnson & Johnson Development Corp., Telos Venture Partners and B.J. Cassin. Each of the investors shares the company’s vision of leveraging Internet technologies to improve the quality-of-life for family caregivers and the individuals under their care. Michael Rolnick, ComVentures general partner, Bruce Bourbon, general partner with Telos Venture Partners and B.J. Cassin will join CareThere’s board of directors.


http://www.CareThere.com


http://www.comven.com


http://www.telosvp.com






USBid Receives $10 Million in First-Round Financing



MELBOURNE, Fla. — USBid, a company specializing in e-commerce solutions, received $10 million in first-round venture capital financing. The company’s end-to-end inventory solution enables electronics manufacturers to sell excess inventory. The infusion of capital came from Spectrum Equity Investors and Brinson Partners.


http://www.usbid.com


http://www.spectrumequity.com


http://www.ubsbrinson.com






MongoMusic.com Raises Over $6 Million



MENLO PARK, Calif.– MongoMusic Inc. completed a $6.3 million round of financing, led by new investors Nokia Ventures and Sony Music Entertainment. MongoMusic.com also received financing from returning investors Angel Investors Inc

., Argus Capital, and Draper Richards. MongoMusic.com’s technology will enable listeners to identify and expand upon the types of music they enjoy. The site is expected to launch during the first quarter of 2000.


http://www.mongomusic.com


http://www.nokiaventures.com






$4 Million Round of Venture Funding for Mslide



SAUSALITO, Calif. – Mslide Inc., a provider of Web-based photo broadcasting applications, completed a $4 million round of funding from Canaan Partners and Rembrandt Venture Partners. John V. Balen, general partner, Canaan Partners will join Mslide’s board of directors. Mslide is a free, Web-based application that enables users to upload digital photos, add music and text, and build a streaming slideshow.


http://www.mslide.com


http://www.canaan.com





T-Venture Invests In AppGate



GOTHENBURG, Sweden– Network security experts AppGate announced that T-Venture, the corporate venture capital subsidiary of Deutsche Telekom, has taken a 10% equity stake in the company. Terms of the deal were not disclosed. AppGate has developed a security solution beyond the firewall that only allows designated users to specific applications and data. It will secure any network from intruders that get past the firewall. AppGate incorporates authentication and encryption methods, and combines a rules-based system to manage personal access to specific applications.


http://www.appgate.com


http://www.t-venture.de






internet.com Venture Fund II Invests in Madeforchina.com and Spottrader.com



NEW YORK– internet.com Venture Fund II, part of the affiliated venture arm of internet.com Corp. (Nasdaq: INTM), publisher of this website, closed investments in Spottrader.com and Beijing-based Madeforchina.com. Madeforchina.com is an interactive marketing company that utilizes the Internet to market, position and launch products and services in China. Spottrader.com is an online electronic commerce wholesale company focused on the sale of food and grocery products.


http://www.internet.comvc.com


http://www.madeforchina.com


http://www.spottrader.com






Pacific Softworks Invests in RedFlag



NEWBURY PARK, Calif.– Pacific Softworks Inc. (Nasdaq:< FONT FACE="Arial" SIZE=2>PASW), a developer of embedded Internet and Web-related software for the information appliance market, formed a strategic alliance and made an investment in RedFlag Inc. RedFlag and Pacific Softworks will work together to develop complete end-to-end networking and application software for the in-store display, banking and other key market areas, using low-cost hardware to provide the interactive experience at the point of purchase. As part of the agreement, Pacific Softworks has the right to acquire up to 45 percent of the shares of RedFlag in exchange for shares of Pacific Softworks in the next 18 months, based on a pre-determined revenue schedule for RedFlag.


http://www.redflag.com






Beazer Homes Makes Strategic Investment in BuildNet



ATLANTA — Beazer Homes USA Inc. (NYSE: BZH) made a strategic investment in BuildNet, a provider of e-business, technology and project management systems for the homebuilding industry. Terms were not disclosed. Beazer Homes is one of the ten largest single-family homebuilders in the U.S.


http://www.buildnet.com


http://www.beazer.com






Reshuffling News



Ask Jeeves to Acquire Direct Hit Technologies



EMERYVILLE, Calif.– Ask Jeeves Inc. (Nasdaq:ASKJ), a provider of question answering services for consumers and companies on the Web, agreed to acquire privately-held Direct Hit Technologies Inc., a provider of award-winning search technology, in a tax-free, stock-for-stock transaction. The total consideration will be 5.12 million unregistered shares (about $500 million), representing approximately 12 percent pro-forma ownership of Ask Jeeves on a fully-diluted, treasury stock basis. In August 1999, Direct Hit raised $26 million in mezzanine financing from TA Associates, Commonwealth Capital, Draper Fisher Jurvetson, Viventures Partners, Mosaic Venture Partners, NeoCarta, and Cornerstone Capital Group LLC.


http://www.ask.com


http://www.directhit.com






RealNetworks Acquires Netzip



SEATTLE — RealNetworks Inc. (Nasdaq: RNWK), a leader in media delivery on the Internet, acquired privately-held Netzip Inc., a developer and provider of Internet download management and utility software. Netzip has been a pioneer in developing consumer-friendly technology to improve the reliability of downloading media and software files over the Internet. RealNetworks acquired Netzip Inc. in exchange for approximately 1.7 million shares (about $250 million) of RealNetworks sto

ck.


http://www.netzip.com


http://www.realnetworks.com






GreenTravel.com Merges With AdventureQuest.com



WASHINGTON — GreenTravel.com, a Web site for extraordinary travel, agreed to merge with AdventureQuest.com. The integrated company, Away.com, will host a large network of pre-screened tour operators offering extraordinary travel experiences. Corporate headquarters for Away.com will remain in Washington. Tom Tracy, AdventureQuest.com president, will lead Away.com’s travel services division from AdventureQuest’s existing offices in Portland, Maine. A major expansion of the site will launch as Away.com (http://www.away.com) next month. Greentravel.com is backed by Gannett Co. Inc. and New World Ventures.


http://www.greentravel.com


http://adventurequest.com






Virtual China Acquires China Buzz



NEW YORK — Virtual China Inc., a provider of comprehensive daily business, finance, technology and cultural coverage of China for non-Chinese speakers, acquired all shares of China Buzz Inc., the Beijing-based parent company of ChinaBuzz.com. The two-year-old ChinaBuzz.com is an English-language web site offering news, information, and feature coverage of China’s growing popular music scene and entertainment industry. The site is also home to BuzzRecords, the largest mainland China-focused record store on the Internet. The acquisition provides Virtual China with a Beijing base for future China operations in both editorial and e-commerce.


http://www.virtualchina.com


http://www.ChinaBuzz.com






Agency.Com Completes Its Purchase of Pictoris Interactive SA



NEW YORK — Agency.Com (Nasdaq: ACOM), an international Internet professional services firm, completed its acquisition of Pictoris Interactive SA, one of the top interactive agencies in France. Agency.Com purchased a minority interest in Pictoris in October 1999 and exercised its option to purchase the remainder of the company on January 24, 2000. The total purchase price was $12.1 million.


http://www.agency.com






Business Engine Software Acquires European Joint Venture From ExpertEyes



MOUNTAIN VIEW, Calif. — Business Engine Software Corp. of San Francisco, Calif., completed the acquisition of its European joint venture with ExpertEyes. Business Engine Software is a provider of Internet-based professional service automation software for information technology, research and development and professional service organizations. ExpertEyes, a “venture catalyst” with offices in Bru

ssels, Belgium and Mountain View, Calif., helps emerging U.S. Internet and enterprise software and services companies expand their business into Europe. The joint venture with Business Engine Software, 95 percent funded by ExpertEyes, produced sales of more than $7.5 million in its second calendar year of operation. As part of the joint venture agreement, ExpertEyes returned control to the U.S. company at a pre-established time, allowing Business Engine Software to consolidate its international operations.


http://www.businessengine.net


http://www.experteyes.com






iAsiaWorks Buys Silicon Valley Web Hosting Firm



HONG KONG– iAsiaWorks, a PanAsian Internet solutions company, acquired Web Professionals, a Silicon Valley Web hosting firm, for an undisclosed combination of cash and equity. Web Professionals provides dedicated server hosting and co-location services for multinational corporations, dot.coms, and small, medium and large businesses around the world. iAsiaWorks investors include Bechtel Enterprises; BT/Alex Brown; Enterprise Partners; Generation Partners; Hambrecht and Quist; Institutional Venture Partners; Korea Technology Banking Corp.; Morgan Stanley Dean Witter; Newbridge Asia; New Enterprise Associates; Salomon Brothers; Samsung Corp.; the Sprout Group; Walden Group of Funds; Zesiger Capital; and Internet Elite Limited (a subsidiary of Pacific Century CyberWorks, a Hong Kong-listed company controlled by Richard Li).


http://www.iasiaworks.com






3wVentures.com Launches TransJet.com



MARINA DEL REY, Calif. — 3wVentures.com Inc., the Internet funding and incubation unit of Web Capital Group, Inc. (OTC BB: WBCG), launched TransJet.com, a private aviation company focused on the business-to-business and business-to-consumer market in providing a comprehensive suite of high-end transportation services. The new firm will be funded and developed at 3wVentures.com’s SiliconLosAngeles.com Internet incubator facility.


http://www.TransJet.com


http://www.3wVentures.com






Fund News



Polaris Venture Partners Closes $800 Million Early Stage



BOSTON– Polaris Venture Partners LP, announced the closing of Polaris Venture Partners III, an $800 million venture capital fund. Polaris III, like its predecessor funds, will target early-stage investments in new economy companies, particularly the Internet, networking, and life sciences.


http://www.polarisventures.com






CMGI and Pacific Century CyberWorks Establish Joint Venture



ANDOVER, Mass.

and HONG KONG– CMGI Inc. (NASDAQ:CMGI), a diversified network of Internet companies, and Pacific Century CyberWorks Limited, the Hong-Kong listed technology flagship of Pacific Century Group, will form a joint venture to create and operate Internet-related businesses in the Asia-Pacific region. The new company, to be called CMGI Asia, will be headquartered in Hong Kong. CMGI Asia will serve as a holding and management company for the purpose of establishing Internet operating businesses in Asia through separate joint ventures with individual CMGI companies. In each case, CMGI Asia will initially own at least 60% of the equity of the Asian operating company. The remaining 40% will be held by the individual CMGI operating company.


http://www.cmgi.com


http://www.pcg-group.com






Who’s Who & Where



CoSine Communications Appoints High-Tech Veteran as COO



REDWOOD CITY, Calif.– CoSine Communications, a provider of next generation IP service delivery platforms, announced that Steve Goggiano joined the executive management team as chief operating officer. Prior to joining CoSine, Goggiano served as senior vice president and general manager of SGI’s server and supercomputer division. CoSine has raised $94 million from the following investors: Kleiner Perkins Caufield & Byers, Norwest Venture Partners, Communications Ventures, Crescendo Ventures, Worldview Technology Partners, Lucent Venture Partners, BCE Capital Inc., Anschutz Investments and Wilson Investors, Technology Crossover Ventures, Charter Growth Capital, Capital Research Company, Tudor Investment Corporation, Amerindo Investment Advisors, Telesoft Partners, Goldman Sachs, Hambrecht & Quist, AT&T Ventures, Rader Reinfrank & Co. and Singapore Telcom.


http://www.cosinecom.com






Tim Walker Named VP of Worldwide Sales for WorldStreet



BOSTON– WorldStreet Corp., an application service provider for the financial services industry, announced the appointment of Tim Walker as vice president of worldwide sales. Previously, Walker worked as senior vice president, capital markets with StreetFusion. Recently, the company completed a $17 million third round of financing, with backing from J.P. Morgan, Hambrecht & Quist and Deutsche Bank.


http://www.worldstreet.com






Charles Finnie Joins [email protected]



MENLO PARK, Calif.– [email protected], the venture capital affiliate of CMGI Inc., (Nasdaq:CMGI), appointed Charles Finnie to the position of general partner. Finnie will focus on investing in business-to-business Internet ventures with capital from the new $1 billion

[email protected] B2B Fund. Finnie spent nearly a decade at San Francisco-based investment bank Volpe Brown Whelan (now called Prudential Volpe Technology Group).


http://www.ventures.com






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