VC Buzz – $55 Million in Today’s Deals

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$2.539 Billion in October Deals

New in the News

eVoice, Futuredontics, LavaStorm,,, Service Metrics, Stagecast Software, U.S.-Israel Science & Technology Foundation, Wit Capital Group, XACCT Technologies


XACCT Technologies Raises $21 Million in Third Round of Financing

SANTA CLARA, Calif.–XACCT Technologies Inc., a leader in the IP mediation market, announced that it has raised $21.3 million in its third round of financing, bringing the total amount raised since its founding in May 1997 to more than $32 million. This new round of investment was led by Technology Crossover Ventures, which was joined by Deutsche Bank and Nissho Iwai Corp. All of the company’s existing investors also participated in the round, including Ampal; Eucalyptus Ventures, a Hambrecht & Quist fund; Israel Seed Partners; and Trident Capital. Secures $20 Million in Venture Funding

EVANSTON, Ill.–, an online company merging “clicks and mortar,” announced a $20 million first round of venture funding from Technology Crossover Ventures, Brentwood Venture Capital and Institutional Venture Partners. The site, providing home improvement products, information and services, is scheduled to launch in November 1999. partnered with Ace Hardware for selection and delivery to consumers through Ace’s established warehouse distribution.

LavaStorm Secures $10 Million in Lead Funding From Hummer Winblad

BOSTON– LavaStorm announced that it has secured $10 million in funding from Hummer Winblad Venture Partners, the largest, targeted 1st round investment ever made by the organization. LavaStorm focuses on conceiving, shaping and shipping technologically advanced, strategically driven and customized Internet solutions.

Next Generation Internet Ventures Receive Financial Awards

WASHINGTON, D.C.–The U.S.-Israel Science & Technology Foundation announced that three joint ventures have been awarded $4 million in grants resulting in zero interest financing to develop and commercialize technologies related to the Next Generation Internet.

Al Kamhi, executive director of the Foundation, announced the winning binational joint ventures: 3M Telecom Systems (NYSE:MMM) and BATM Advanced Communications (BVC.L)-Next Generation Internet Fiber Optic Switch; BroadLogic Inc. and Gilat Satellite Networks Ltd. (Nasdaq:GTLTF)-Multicast Network Systems; Cayman Systems, Inc. and Orckit Communications, Inc. (Nasdaq:ORCT)-Next Generation Internet Access Systems.

Exodus To Acquire Service Metrics

Santa Clara, Calif. — Exodus Communications Inc. (NASDAQ: EXDS), announced it has entered into a definitive agreement to acquire Service Metrics Inc. for $280 million in stock, subject to adjustment depending on the price of Exodus stock at the time of closing. Service Metrics is a provider of Internet monitoring applications and services that measure the consistency, availability and performance of web sites. Service Metrics has received financing from SOFTBANK Technology Ventures, IDG Ventures, Pequot Venture Partners, Nexus Group LLC, Fidelity Ventures and Bluewater Capital Management, Inc.

Internet Fact of the Day

Opportunities derived from film digitization, Internet membership photo sharing and the redistribution of images to prints and reprints, will grow to become a $5.64 billion opportunity by year 2003, according to Imerge Consulting Group. and Form Strategic Alliance

SAN DIEGO and SAN FRANCISCO — Inc. (Nasdaq: MPPP), an online digital music destination, and, an Internet directory of downloadable music, announced they are working together to broaden the scope of online exposure for artists. The new relationship includes cross-promotional efforts to increase traffic between the two Internet music sites and provide consumers an additional editorial viewpoint on’s vast array of music. is backed by the Barksdale Group, August Capital, Hambrecht & Quist, Sony Music and Austin Ventures. It was seeded by Altos Ventures and three prominent Founder/CEOs: Chris Anderson, Imagine Media; Halsey Minor, CNET; and, Ted Waitt, Gateway Computers.

IP Telephony Company Changes Name to eVoice

MENLO PARK, Calif. — IP Telephony company TalkStar Inc. announced it has changed its corporate name to eVoice Inc. eVoice plans to deliver its first offering of Internet-based telecommunications services beginning in November. The first service will be free to end-users and will include home phone answering functionality with multiple extensions. With eVoice’s service, phone messages are retrievable via the phone or Internet.

eVoice has, to date, received $12 million in funding from Worldview Technology Partners, Nokia Ventures and Oak Investment Partners.

Dental Services Website Launches with Movie Tie-In

LOS ANGELES – Futuredontics, a dental services marketing company, has launched its website with a marketing and merchandising campaign linked to a major feature film. Television commercials will feature the stars of Columbia Tri-Star’s Christmas season release “Stuart Little.” will be supported by a $30 million consumer advertising campaign aimed at generating traffic to the new site. The campaign will also incorporate an interactive sweepstakes promotion co-branded and promoted through Sony Entertainment’s Imageworks website.

Futuredontics is exploring venture capital investment options in preparation for future market expansion.

Who’s Who & Where


Wit Capital Acquires Dawntreader Management Team

NEW YORK–Wit Capital Group Inc., (NASDAQ:WITC), parent company of the pioneering online investment banking firm Wit Capital Corp., announced that it has hired the management team of Dawntreader Fund I LP to lead the company’s newly formed Venture Capital Fund Group. Dawntreader Fund I LP was founded in 1998 by Wit Capital chairman and co-CEO Robert Lessin, Daniel I. DeWolf and Steven Klein as an early stage Internet investment firm.

Daniel DeWolf (managing director) will manage the Venture Capital Fund Group. DeWolf is joined by Edward G. Sim (managing director), Andrew Weissman (managing director) and Edwin Carlson (vice president). Steven D. Klein will continue as an advisor.

The Venture Capital Fund Group’s funds include Wit Capital’s recently closed Arista Capital Partners LP, a $39.45 million Internet-related venture capital fund. The Venture Capital Fund Group will continue to manage the Dawntreader Fund I LP. In addition, Wit Capital expects to offer a new venture capital fund in the next 90 days.

Stagecast Software Signs on Seasoned Execs

SACRAMENTO, Calif. — Stagecast Software Inc. announced it has hired Susan Lee-Merrow as vice president of worldwide marketing and Donna Hendrickson as vice president of worldwide sales and business development. Stagecast Creator creates a point-and-click programming environment where anyone can develop simulations, interactive stories, games, puzzles, and a variety of other applications.The company is financed by IDG Ventures, private investors represented by Morningside Ventures and other private investors.


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