VC Buzz – $468+ Million in Today’s Deals


New in the News



Acacia Research, Asera, BlindGift.com, Coactive Networks, eCoverage, edocs, EthnicGrocer.com, Evoke Software, Giftpoint.com, Global Sight, HarmonyCentral.com, HarvardNet, iAsiaWorks, iReady, iXmatch.com, Law.com, Lutris Technologies, Mockingbird Networks, Niku, OfficeClick.com, Predict It, Red Rock Ventures, Riffage.com, SF Interactive, SharkyExtreme.com, SimplyCollectible, The Female Athlete



 






iAsiaWorks/AUNET Raises $85M



SAN MATEO, Calif.– AUNET, which is in the process of changing its name to iAsiaWorks, raised $85 million from U.S. and Asian investors to accelerate the build-out of its Internet solutions business model across Asia. The round of funding was led by Newbridge Asia and the Sprout Group. Also participating were Samsung Corp., Morgan Stanley Dean Witter, Bechtel Enterprises, Hambrecht & Quist, Korea Technology Banking Corp. and Richard Li of Hong Kong’s fund, Internet Elite Limited. Previous investors who also participated in this round of financing include Enterprise Partners, Institutional Venture Partners, New Enterprise Associates, Zesiger Capital, Walden Group of Funds, Salomon Brothers, Generation Partners and BT/Alex Brown. Total capital raised to-date is approximately $110 million.


http://www.iasiaworks.com






HarvardNet Secures $70 Million in Funding



BOSTON, Mass. — HarvardNet secured $70 million in new funding from private equity investment firms. The Sturm Group and Vulcan Ventures Inc., the investment organization of Paul G. Allen, join existing investors, including Fidelity Ventures, M/C Venture Partners, and Osborn Capital. The additional capital will fund the continued build-out of HarvardNet’s DSL network from Maine to Virginia as well as the construction of additional Web hosting centers to serve its collocated, dedicated and shared Web hosting customers.


http://www.harvardnet.com


http://www.paulallen.com






Law.com Announces $50.4 M Investment by SOFTBANK Capital Partners



SAN FRANCISCO — Law.com, a destination for professional, student, business and consumer legal information, commerce and services, signed a definitive agreement for an investment of $50.4 million from SOFTBANK Capital Partners. SOFTBANK Capital Partners will own an undisclosed minority interest in Law.com. Bill Burnham, former Credit Suisse First Boston Corp. e-commerce analyst and now general partner of SOFTBANK Capital Partners, will join Law.com’s board of directors. Law.com was acquired in July 1999 by U.S. Equity Partners L.P., a private equity investment fund sponsored by Wasserstein Perella, & Co, as part of a strategic initiative to create the dominant content resource and e-commerce site serving the $130 billion plus legal services market.


http://www.law.com


http://www.softbank.com






Asera Secures $47.4 Million in Series B Funding



REDWOOD CITY, Calif.– Asera Inc., a provider of business-to-business e-commerce solutions that enable companies to improve channel effectiveness, sales volume and customer loyalty, completed its Series B funding of $47.4 million. Cisco Systems Inc., GE Capital Equity Investments Inc., and Intel Corp. participated in a Bowman Capital Management-led funding round along with other investors that include Itochu Corp./ Itochu Technology Inc., Integral Capital Partners, Kleiner Perkins Caufield & Byers and Presidio/Sumitomo Corp.


http://www.asera.com






Niku Corp. Raises $40 Million in Financing



REDWOOD CITY, Calif. — Niku Corp., a provider of software and business portals that enables businesses to source, manage and deliver professional services using the Internet, completed a $40 million financing. Participants in the round include new institutional investors Amerindo Investment Advisors Inc., Charter Growth Capital, Essex Investment Management and investment affiliates of Soros Private Equity Partners LLC and strategic partners, CNET and TATA Consulting, India’s largest IT consulting firm. Previous Niku venture investors J.H. Whitney & Co. and Venrock Associates also participated in the financing.


http://www.niku.com






OfficeClick.com Receives $30.5 Million in Second Round Funding



PALO ALTO, Calif.– OfficeClick.com Inc., which launched its Online Workcenter for admins in November, announced the completion of a second round of venture financing totaling $30.5 million. Funding comes from new investors, InterWest Partners, Spectrum Equity Investors and Forrest Binkley & Brown, as well as first-round investors, Doll Capital Management, Sigma Partners, and St. Paul Venture Capital. The completion of the second round of financing brings the total capital raised to $38 million.


http://www.officeclick.com


http://www.interwest.com


http://www.spectrumequity.com


http://www.dollcap.com






Acacia Research Completes $21 Million Private Equity Financing



PASADENA, Calif.– Acacia Research Corp. (Nasdaq:ACRI) announced the closing of a private equity financing of $21 million. The offering price of $21.50 per unit was set on December 2, 1999. Each unit consists of one share of Acacia Research’s common stock and one-half of a three-year callable common stock purchase warrant. Each common stock purchase warrant entitles the holder to purchase one share of Acacia Research’s common stock at a price of $26.00 per share and is callable by Acacia Research once the closing bid price of the company’s common stock averages $35.00 or above for 20 consecutive trading days on the Nasdaq National Market System. Acacia Research Corp. is a diversified company with interests in several enterprises – Acacia Launchpad LLC (Internet incubator), CombiMatrix Corp. (biochips/drug discovery technology), Greenwich Information Technologies LLC (video and audio-on-demand technology), MerkWerks Corp. (software development), Signature-mail.com llc (personalized e-mail service), Soundbreak.com Incorporated (Internet music and e-commerce), and Soundview Technologies Inc. (V-chip technology).


http://www.acaciaresearch.com






Riffage.Com Secures $21 Million in Second Round Financing



PALO ALTO, Calif. — Riffage.com, a site for experiencing new music from breakthrough bands, closed $21 million in second round financing. Riffage.com’s second round investors include BMG Entertainment, America Online, Bertelsmann Ventures, Mayfield Fund and Trans Cosmos USA. Bertelsmann Ventures and Mayfield Fund participated in the first round.


http://www.riffage.com






Evoke Software Closes Latest Round of Financing



SAN FRANCISCO, Calif. — Evoke Software Corp., a pioneer in data profiling technology, obtained an additional $16 million of venture capital funding in November, bringing the total amount of capital invested in the company to $30 million. Signal Equity and GE Equity led the expansion round and were joined by existing investors, including Wheatley Partners, Axiom Venture Partners, and RRE Investors. Evoke Software provides data profiling and mapping solutions that shorten time-to-benefit, reduce cost and risk, and increase the quality of results for IT projects involving data migration, integration or consolidation. These projects include data warehouse and data mart implementations, ERP and CRM systems, application integration projects, e-business systems, and data consolidations associated with a merger or acquisition.


http://www.evokesoft.com


http://www.equitycapital.com


http://www.rre.com






Coactive Networks Nets $14M in Second Round



SAUSALITO, Calif.– Coactive Networks, a leader in connecting open control systems to Internet technologies, secured $14 million in funding from new investors including 3Com Ventures, a business development group within 3Com Corp. that invests in emerging technology companies, and Technology Associates, and existing investors including Chase Capital, TechFund Capital, and Charter Ventures.


http://www.coactive.com


http://www.3com.com






Global Sight Receives $12.9 Million in Second Round of Funding



SAN JOSE, Calif.– Global Sight Corp., a provider of enterprise solutions for Web site globalization, closed a second round of funding totaling $12.9 million. J.H. Whitney of Stamford, Conn., the U.S. investment arm of the U.K.-based 3i, Hikari Tsushin of Tokyo and Draper Fisher Jurvetson of Redwood City, Calif., participated in the round. Global Sight provides global e-business technology and strategy for companies to manage their Web presence in the language and culture of target markets worldwide. The second round brings the company’s cumulative venture capital investment to $16 million.


http://www.globalsight.com


http://www.3iUS.com


http://www.jhwhitney.com


http://www.hikari.co.jp


http://www.dfj.com






Kleiner Perkins Caufield & Byers and Benchmark Capital Invest $12 Million in EthnicGrocer.com



EVANSTON, Ill.– EthnicGrocer.com, a comprehensive online source of ethnic food ingredients and consumer products from around the globe, announced a $12 million investment from Kleiner Perkins Caufield & Byers and Benchmark Capital. The virtual ethnic grocery store offers more than 20,000 ethnic ingredients from all over the world, as well as recipes and information about different cultures.


http://www.ethnicgrocer.com


http://www.kpcb.com


http://www.benchmark.com






HarmonyCentral and zZounds.com Merge



PALO ALTO, Calif.– Two Internet music sites have merged to form a resource for musicians on the Internet. HarmonyCentral.com Inc. was formed by a merger of Harmony-Central.com and zZounds.com. Harmony-Central.com and zZounds.com will continue to operate as independent Web sites under the parent corporation of HarmonyCentral.com Inc. At the same time, the merged company announced the raising of more than $10 million to fund aggressive expansion plans. Lead funding was provided by Vulcan Ventures Inc., the investment organization of Paul G. Allen. Also participating in the first funding round were Zilkha Venture Partners and several angel investors.


http://www.harmony-central.com






Lutris Technologies Receives $10 Million in Funding



SANTA CRUZ, Calif. — Lutris Technologies announced the receipt of $10 million in funding from Chase Capital Partners and Chase H&Q, formerly Hambrecht & Quist. Founded in 1995, Lutris is the developer and primary sponsor of the Open Source Enhydra application server and an Internet consulting and professional services organization. The company plans to use the funding to build on the acceptance Enhydra has received in the Open Source community and make it the de facto standard Java/XML application server for Internet applications.


http://www.enhydra.org


http://www.chasecapital.com






SF Interactive to Receive $10 Million Investment



SAN FRANCISCO — SF Interactive, a full-service digital marketing agency, will receive an investment of $10 million in growth capital by the private equity group William E. Simon & Sons. SF Interactive will use the proceeds to launch or acquire offices in several major U.S. markets as well as to develop proprietary measurement, tracking and e-commerce applications for use by its clients. The agency will show revenues of over $7 million for 1999, up from just under $2 million in 1998. Over 100 professionals are employed in its San Francisco and New York offices, and the firm manages capitalized annual billings of more than $25 million in online media.


http://www.sfinteractive.com






Mockingbird Networks Pulls In $7 Million



NEW YORK and CUPERTINO, Calif.– Wasserstein Adelson Ventures L.P., the venture capital arm of Wasserstein Perella Group, is leading a $7 million venture capital investment in Mockingbird Networks, a Cupertino, Calif.-based manufacturer of voice-over-IP telephony switches. Mockingbird Networks’ innovations enable and enhance telephony applications for the Internet and other broadband networks. Wasserstein is the lead investor in Mockingbird’s venture financing, with Cabletron Systems Inc., Bayview Investors Ltd. and others also investing.


http://www.mockingbirdnetworks.com






Seattle Company Invests $5 Million in Giftpoint.com



OMAHA, Neb.– Giftpoint.com, an online gift certificate provider, which supplies gift certificates to businesses for corporate gift giving as well as to individual consumers, attracted a $5 million investment from Seattle-based GreaterGood.com.


http://www.giftpoint.com


http://www.GreaterGood.com






The Female Athlete Raises $4.8 Million in Private Placement



NEW YORK — Founded in 1996 by soccer moms Mary P. Tenety and Lori Tesla-Schmid, The Female Athlete — accessible through http://www.femaleathlete.com and a related print catalog — offers hard-to-find athletic wear, gear and accessories to Generation Y girls and women, ages 8 through 23. Rapid growth to date led to a recent private offering that raised over $4.8 million and was beyond the maximum that the company anticipated. At the completion of the offering, Edward R. Downe Jr. became chairman of the TFA board of directors






Predict It Completes $1 Million Bridge Financing



NEW YORK– Predict It Inc., (OTCBB:PRIT), an Internet service which measures, identifies, ranks and rewards users based on their prediction performance in event categories such as sports, finance, politics, and entertainment, announced that a group of the company’s early stage investors including Dawntreader Fund I LP and Commonwealth Associates had increased their investment in the company through a $1 million bridge financing.


http://www.predictit.com


http://www.dawntreaderlp.com






GE Capital Invests in edocs



NATICK, Mass. — edocs, a provider of Internet billing software, announced that GE Capital, a wholly-owned subsidiary of General Electric Company (NYSE: GE), has invested in edocs. GE Card Services, a unit of GE Capital, has also selected edocs BillDirect software to deliver online billing capabilities to its private label credit card customers. GE Card Services’ private label credit card customers represent more than 100 million accounts worldwide. edocs’ flagship product, BillDirect, is a comprehensive, off-the-shelf software application that enables billers to deliver personalized, interactive bills through the biller’s own web site or through Internet billing service providers. Charles River Ventures, Comdisco, Goldman Sachs, JAFCO America Ventures and Sigma Partners have all invested in edocs.


http://www.edocs.com






eHatchery Announces Investment in SimplyCollectible



ATLANTA — eHatchery, a next-generation e-business incubator, announced its investment in SimplyCollectible, an e-commerce site featuring high-quality collectibles and figurines. SimplyCollectible, eHatchery’s third start-up investment, is accepting orders at http://www.simplycollectible.com. eHatchery institutional investors include idealab!, United Parcel Service, Donaldson, Lufkin & Jenrette and Botts & Company.


http://www.ehatchery.com






Internet.Com Acquires Sharkyextreme.Com



Darien, CT– internet.com (Nasdaq: INTM), the E-business and Internet Technology Network, publisher of this website, acquired the SharkyExtreme.com Web site. Terms were not disclosed. SharkyExtreme.com is a professional resource for the latest hardware and software technology on the Web, providing news, research, analysis and buying guides for the Internet and technology industries.


http://www.internet.com


http://www.sharkyextreme.com






Who’s Who & Where



Peter Tierney Named Chairman of the Board of BlindGift.com



SAN FRANCISCO– BlindGift.com, an e-commerce company enabling online shoppers to send gifts using just the recipient’s e-mail address, named Peter R. Tierney, president and CEO of MarketFirst Software, as the chairman of the board. Tierney is also president of the private investment firm Firethorn Ventures and currently sits on the board of directors of MarketFirst Software, Castelle Corp., PhotoAccess Corp. and is an advisor to The SoftAd Group and KachinaNet.com.The company recently received first round funding.


http://www.blindgift.com






iXmatch.com Names Sheldon T. Fleck to Board of Directors



MINNEAPOLIS– iXmatch.com announced that Sheldon T. Fleck has joined the company’s board of directors. Mr. Fleck is an angel investor in iXmatch.com, an Internet startup that matches available information technology projects at corporations with qualified independent IT consultants via its Web site http://www.ixmatch.com.





eCoverage Names Scott Kauffman President & CEO



SAN FRANCISCO — eCoverage, an online insurance services company, announced that Scott L. Kauffman will join the company as president and CEO. David Riker, eCoverage’s founder who has served as president and CEO since February 1999, will remain as chairman of the board. Before joining eCoverage, Kauffman was president & CEO of AdKnowledge, an Internet software company based in Palo Alto, Calif. In October, the company completed a $15 million second round of private financing with blue-chip investors that include SOFTBANK Technology Ventures; RRE Investors; E*TRADE; David Coulter, former chairman and CEO of Bank of America; Kenneth Langone, co-founder and director of Home Depot; and Accel Partners.


http://www.ecoverage.com






iReady Names Stephen Cordial as CFO and Senior Vice President



SAN JOSE, Calif.– iReady Corp., a provider of Internet-enabling solutions for smart electronics, appointed Stephen Cordial as its chief financial officer and senior vice president of finance and administration. Cordial comes to iReady from Xylan Corp. and PMC-Sierra where he served as vice president and chief financial officer. Cordial began his career at Texas Instruments. iReady has raised over $22 million in financing from B. J. Cassin, Canaan Partners, Crescendo Ventures, Donald L. Lucas, Jafco America Ventures Inc., NTT, RWI Group, and Telos Venture Partners.


http://www.iready.com






Red Rock Ventures Expands Partnership



PALO ALTO, Calif. — Red Rock Ventures, the venture capital investment partnership specializing in seed and early stage technology investments, announced that Laura Brege and Bob Marsh have joined the firm as new partners. Brege joins Red Rock from COR Therapeutics, Inc., where she was the senior vice president and CFO for seven years. Marsh was most recently with Sony Electronic Publishing as general manager responsible for developing an electronic publishing business producing document collections on CD-ROM, DVD-ROM, and the web.


http://www.redrockventures.com






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