VC Buzz – $571.67 Million in Today’s Deals

VC Buzz – $571.67 Million in Today’s Deals

New in the News

@Ventures, Advanced Technology
Basis 100,, Brand Farm, BroadJump,,,,,, eFORCE, Enterworks, FeedRoom,, FundsXpress, Grand Central Holdings,, Healtheon/WebMD,, Impact Venture
, Industria Solutions, Integral, iWeb, LRN, M&A
,,, NewMediary.Com, NextGen Capital,,,,, PlanSoft,, Post
,, SideTalk, Solect Technology
, Sonic Foundry,
Spring Tide
,, Sprout
, Syndesis, TelenComm,, TradeAccess, Urban
, WebCT, XTRA On-Line, ZipLink,

Deal News
Announces $59.7 Million Equity Financing

ATLANTA — (Amex: FSW), closed the sale
of an equity financing package of restricted common stock and warrants with
total proceeds of $59.7 million, assuming the institutional investors exercise
all their warrants. The transaction provides for an initial investment of $11
million. Funds from the private equity placements will be used to expand the
company’s Internet-powered private jet aviation travel services business. The
lead institutional investor for the financing is Acqua Wellington Asset

FundsXpress Raises
$40 Million in Private Funding

AUSTIN, Texas– FundsXpress Inc., a provider of Internet banking and other
financial services, completed a $40 million private financing round involving
E.M. Warburg, Pincus & Co., The Beacon Group and Texas Growth Fund.
David A. Coulter, former BankAmerica Corp. chairman & chief
executive officer, and two partners from Warburg, Pincus — Joseph P.
and Kewsong Lee — joined the FundsXpress board of directors.
The FundsXpress Financial Network provides secure, reliable and convenient
Internet banking through a service bureau solution to banks and credit unions
across the country.

Integral Raises
Over $40 Million in Private Equity Financing

PALO ALTO, Calif.– Integral, a provider of e-commerce solutions for capital
markets, secured a private placement totaling more than $40 million from
strategic and financial investors. Integral’s principal venture is,
a business-to-business e-commerce portal for capital markets. The financing
round included Pivotal Asset Management, AIG (NYSE:
AIG), ABN Amro
ABN), Bain Capital, Nassau Capital and existing investor Accel Partners.
Providing additional investments are Jack Acosta, Bill Coleman, Gary Davis,
John Dillon, Ken Goldman, George Kadifa, Nico Nierenberg and Larry

Spring Tide
Networks Secures $38.9 Million in Third-Round Financing

BOXBOROUGH, Mass– Spring Tide Networks Inc. secured $38.9 million in
third-round funding. The investment was led by Meritech Capital Partners, and
included Sumitomo Corp., Lucent Technologies and Global Crossing Ventures Inc.,
the venture capital arm of service provider Global Crossing. They join
returning investors North Bridge Venture Partners, Matrix Partners and Oak
Investment Partners. Spring Tide Networks develops carrier-class networking
equipment that extends a rich set of business-quality IP services anywhere in
the new public IP network. Secures
Additional $35 Million In Financing

MENLO PARK, Calif. —, a resource for building free Web sites,
raised $35 million in additional funding for its mezzanine round from Amerindo
Investment Advisors, Donaldson Lufkin & Jenrette, Goldman Sachs and
Meritech Capital Partners as well as early investors in the company, Draper
Fisher Jurvetson, Global Retail Partners and IVP.

Solect Technology
Group Raises $33.5 Million

SAN JOSE, Calif. and TORONTO– Solect Technology Group, a provider of IP
billing and customer care software, raised $33.5 million U.S. in a third round
financing. The funding was led by Bain Capital, through its Brookside Capital
Partners Fund LP and Weiss, Peck & Greer LLC. Also investing were Morgan
Stanley Dean Witter, together with existing Solect investors Science
Applications International Corporation/Telcordia and Technology Crossover

Syndesis Closes
$33 Million Mezzanine Round Financing

RICHMOND HILL, Ontario– Syndesis Limited, a provider of automated service
creation and activation software for the new public network, closed a US$33
million mezzanine round of financing led by Pequot Capital of Westport, CT, and
VenGrowth of Toronto, Ontario — in addition to participation by its original
investors, Greylock and Sequoia. In total, the company has raised in excess of
US$50 million.

DuPont and
Chemdex Form Industria Solutions

WILMINGTON, Del. and MOUNTAIN VIEW, Calif. — DuPont (NYSE: DD) and Chemdex Corp.
CMDX) announced the formation of Industria Solutions Inc., a new
business-to-business e-commerce company that will streamline the procurement of
materials for the $75 billio

n worldwide fluid processing market. The company
will receive initial cash funding of $30 million, including $10 million from
@Ventures, the venture capital affiliate of CMGI Inc. (Nasdaq:
CMGI), as well as
financial investments from Chemdex, DuPont and other strategic investors. Secures
$30 Million Investment in Third Round of Venture Funding

BEDFORD, Mass.–, a new kind of financial service custom-built
for small businesses and entrepreneurs, received $30 million in third round
financing. Investors participating in this round include Century Capital
Management, Paine Webber Group Inc. (NYSE:
PWJ), Merrill Lynch
MER), and Onex Ventures. Additional investment came from The Burtzloff
Family Trust, as well as all earlier contributors including @Ventures, the
venture capital affiliate of CMGI Inc. (Nasdaq:
CMGI). With’s suite of services, through one secure online account, businesses
can handle cash management, bill payment, payroll, 401(k) plan management,
merchant account activities, credit needs and more. Closed $30
Million in Series B Financing

BOSTON–, a Boston-based, pure e-commerce solution for verified
college students and branded marketers, closed $30 million in second round
funding. The round was led by strategic investor Student Advantage Inc.
STAD), with follow-on investments from first round participants Mayfield
Fund and Information Technology Ventures and new investments by HarbourVest
Partners, Banc One Equity Capital, General Catalyst, Arcadia Partners and
WaterView Partners. offers exclusive academic or “student-only” prices,
information, and rewards on the products and services to college students.



SOFTBANK Invests $30
Million In LRN, The Legal Knowledge Company

LOS ANGELES– SOFTBANK Venture Capital and SOFTBANK Capital Partners
invested $30 Million in LRN, The Legal Knowledge Company, a provider of expert
legal knowledge through the Internet. LRN is using the Internet to establish a
“Legal Knowledge Environment” allowing 24/7 access to tools and knowledge for
lawyers, business professionals and corporate employees.

WebCT Receives $25
Million Equity Investment

PEABODY, Mass.– WebCT Inc. secured a $25 million round of equity financing
led by Chase Capital Partners, @Ventures, and BancBoston Ventures. Duke
Management, Boston Millennia, Kestrel Venture Management, and NetInvest
contributed the balance of the funding. WebCT provides Web-based teaching and
learning solutions for the higher education marketplace.

$25 Million For
Urban Media

PALO ALTO, Calif.– Urban Media Inc., a forerunner in the on-site service
provider market, secured $25 million in venture capital financing from SOFTBANK
Venture Capital and Accel Partners. This brings the total amount raised by the
company to over $30 million. Urban Media will use the funds to expand the
company’s rollout of Urban Media OnSite — a family of advanced voice and data
services for small- and mid-sized businesses.

$20 Million
Investment in BroadJump’s Second Financing Round

AUSTIN, Texas– BroadJump Inc. closed $20 million in venture capital in itsse

cond round of funding. Accel Partners led the round, which included PCG
Ventures, an affiliate of Pacific Capital Group, as well as first-round
investors Austin Ventures and Techxas Ventures. BroadJump’s software solutions
enable broadband service providers to accelerate deployment of residential
high-speed Internet access, to manage the connection and to deliver value-added
services to broadband subscribers. Completes
$17 Million Private Financing Round

CONSHOHOCKEN, Pa. and ANDOVER, Mass.– Inc. completed a $17 million
round of venture funding led by @Ventures, the venture capital affiliate of
CMGI (Nasdaq:CMGI). Other investors include Comcast Interactive Capital,
Venture Investment Management Co., Pennsylvania Early Stage Partners (a
Safeguard Scientifics fund); and prominent individuals, including Halsey Minor,
Mark Walsh, the Berkman Family and others. unveiled its new person to
person e-commerce site last week, which offers people an organized retail
online marketplace to buy and sell high quality previously owned consumer
entertainment merchandise for at least half off list price.

eFORCE Collects $16

PALO ALTO, Calif.– Norwest Venture Partners contributed $10 million to a
second-round of investment in eFORCE Inc., an eBusiness solutions integrator.
The other $6 million included investments from Greylock and Infinity Capital.
Norwest Venture Partners managing partner George Still joined eFORCE’s
board of directors. eForce combines expertise in eCommerce architecture,
branding, integration, and implementation with its eBRIDGE methodology
(eBusiness Rapid Implementation and Deployment for Global Enterprises).

Omnicom Takes
Stake in Post Communications

SAN FRANCISCO — Post Communications, a provi

der of customized email
marketing services, completed a $15 million round of mezzanine financing. The
funding comes from Omnicom Group’s (NYSE:
OMC) Communicade
division, as well as existing investors, Mohr, Davidow Ventures, Venture
Strategy Partners, Entertainment Media Ventures and Lighthouse Capital. Post
develops customized email marketing solutions that allow companies to conduct
an ongoing dialogue with their customers.

SideTalk Secures $8
Million First Round of Funding

ATLANTA– SideTalk Corp., a provider of next generation Web surfing
applications, closed its first round of venture funding, with $8 million in
funding from netWorth Partners LP and Noro-Moseley Partners. The company also
named Andrew Dietz, former netWorth Partners venture capitalist and vice
president of, as its chief executive officer. Side Talk’s
flagship product is currently in private Beta and is scheduled to be launched
to users in the first quarter of 2000.

[email protected] Teams
Up With

PARIS– [email protected], the Internet investment arm of Groupe Arnault, has taken
a minority stake in, the first European website to specialize in
wedding planning. The new round of financing comprises a total of 40 million
francs (about $6.13 million), including the [email protected] investment. These funds
will allow alafolie to accelerate its development in Europe, with alafolie
sites to be launched in Germany, Italy, Spain and the UK.

PlanSoft Receives $6
Million in Additional Funding

CLEVELAND– PlanSoft Corp., an Internet-based business-to-business solution
provider in the $100 billion meeting and convention industry, received $6
million in additional venture capital funding. The latest infusion expands the
third round of financing from $24 million to $30 million and brings the overall
investment in PlanSoft to $46 million. The new investors are Doll Capital
Management and Benefit Capital Management Corp.


Music.Com Secures $6

MORRISTOWN, NJ–, a full-service music website, secured an equity
investment from Citicorp Capital Asia Limited, a unit of Citigroup, along with
two others private funds, for a total of $6 million., along with its
business partners, operates an Internet site providing aggregator and gateway
services to the consumer and professional music industry. John H.
, CEO of Citicorp Capital Asia Limited, has been appointed to’s board of directors. Closes
$5.64 Million Funding Round

SCOTTSDALE, Ariz.– Corp. completed its first funding round of
$5.64 million. The deal was fully subscribed in 26 days by 125 investors in 27
states through OffRoad Capital’s proprietary network of high net worth
individuals. is a provider of Java-based Internet and Intranet
enterprise network management applications on NetWare, NT, and UNIX

TradeAccess Receives
$5 Million In Financing

CAMBRIDGE, Mass. — TradeAccess Inc., a pioneer of innovative solutions for
comprehensive, Web-based commercial buying and selling, received a first round
equity investment of $5 million led by Cross Atlantic Technology Fund.
TradeAccess’s online marketplace and extranet solutions streamline the customer
value chain by Web-enabling and managing online direct and indirect customer,
supplier and sales channel relationships. Raises 3.25
Million Pounds in Private Placement

HERTFORDSHIRE, England — Internet application service provider,
(Zyris Plc), received investment of $5 million in a first round private
placement. The investment will be used to help the UK-based provider of web
graphics and web page building services set up a US operation, to extend its US
customer base and develop its European customer base. The funding was led by
London based technology house ICE Securities.
Closes First Round of Financing

BOSTON —, a secure, scalable, Internet-based service that
enables client, creative, production and media professionals to coordinate
their projects and manage their deadlines, secured $4.3 million in first-round
financing. Egan Managed Capital LP, Mid-Atlantic Venture Fund III LP,
Massachusetts Technology Development Corp., Hickory Venture Capital Corp. and
the Hatch Group LLC all participated. Sprockets will g

o live in February.
Secures $3 Million in First Round

ARLINGTON, Va. —, a business-to-business marketplace for
telecommunications products and services, received $3 million in its first
round of financing from Lazard Technology Partners. Over 400 telecommunications
equipment vendors, service providers and system integrators sell their goods
and services on the site and almost 4,000 customers from 88 countries make
purchases ranging from $1,000 to $50 million. The company also named George
as vice president of corporate development and moved its
headquarters to Arlington, Va. in mid-January.
Receives $2.5 Million First Round

CHICAGO and SAN FRANCISCO–, a business to business to
consumer company that creates natural language-based interactive recommendation
systems for on-line websites, closed on a $2.5 million first round of
financing. Venture Strategy led the round of financing. WR Hambrecht + Co. also
participated in the round. Anthony Conrad, a partner at Venture Strategy
and WR Hambrecht + Co’s Bob Hambrecht will serve on’s
board of directors.
Receives Financing

NEW YORK —, a destination for local businesses searching for
office and retail space, received $2 million in financing from Scripps
Ventures. Launched in New York City in May 1999, allows businesses
to search its extensive supply of detailed space listings free of charge and
access products, services, and content related to the space search/move-in
process. The company plans to use the funding to expand to additional U.S.
cities and enhance its Web site.

Internet Fact of the Day

US consumers spent $7.3 billion on personal digital devic

es in 1999,
ranging from digital cellphones and smartphones through PDAs and portable
computers to MP3 players and digital cameras, according to a study by Strategy
Analytics within its strategic advisory service, The Interactive Home. Digital
phones and notebook PCs each took a third of the market, and these two
categories are expected to dominate over the next five years.
Acquires In The Company of Dogs, Makes Deal with NBC

SAN FRANCISCO–, an online pet store, acquired In The Company of
Dogs, a premium specialty catalog and e-commerce web site of high quality,
distinctive products for dogs, dog lovers and their homes. Terms of the deal
were not disclosed. is funded by Technology Crossover Ventures;
PETCO Animal Supplies Inc.; [email protected], the Internet investment arm of Group
Arnault; Attractor Investment Management Inc.; BancBoston Ventures; and
Comdisco Inc.

In other news, NBC and ValueVision, which is minority owned by NBC, agreed
to make a minority investment in, which includes both cash and
on-air promotion on the NBC network and across NBC’s 13 owned and operated
stations. Stuart Goldfarb, vice chairman of ValueVision, will join’s board of directors. Financial details regarding the transaction
were not disclosed.

Brand Farm Secures
Series-A Financing

NEW YORK — Brand Farm Inc., an Internet operating company dedicated to
online specialty retailing, closed its first round of private financing.
Principal investors include institutions AMB Property LP (NYSE:
AMB), Angel Investors
LP, Hambrecht & Quist, and Maveron. Individual investors Jeff Berg, Tully
Friedman, Warren Hellman, Sandy Robertson, Ben Rosen and Paul Stephens also
participated in this initial round of financing.

Receives Funding

NEW YORK — The FeedRoom Inc., an interactive broadband TV news network,
received its first round of funding from investors such as Angel Investors LP,
Bear Stearns Constellation Ventures, iHatch Ventures, Intel Capital, New York
City Investment Fund, Ridgewood Capital and Telesoft Partners. Additional
investors are Ken Moelis, Richard E. Salomon, Stephen Robert and Dan Lynch.
Further financial details of the investments were not disclosed. The FeedRoom
Inc. is slated to launch first quarter 2000, and will aggregate the latest news
and information from all media, including networks, local television and radio
stations, cable channels and documentary producers.

TelenComm Completes
First Round of Funding


– TelenComm Inc., a provider of Wireless Personal Area
Network solutions for the personal communications and computing market,
completed its first round of new funding. Investors include Sequoia Capital and
NeoMagic Corp. Sequoia Capital’s Mark Stevens and NeoMagic chief
Prakash Agarwal joined the company’s board of directors. TelenComm’s
solutions enable connectivity anywhere, anytime, and allow consumers to have a
Personal Web that they can carry with them.

Reshuffling News to

DALLAS — Inc. (Nasdaq: POPM), a permission-
and affinity-based email marketing company for the broadcast, media, sports,
and entertainment industries, will acquire online convergent media company Inc. shareholders will receive a number of shares of a new class
of preferred stock in exchange for their shares. These new
preferred shares can be converted into approximately 7.3 million shares of
common stock (about $36 million).

Basis100 acquires

TORONTO – Basis 100 Inc., an Internet-based e-commerce solutions provider,
will acquire Solimar.Net, a profitable business-to-business e-commerce company
based in Orange County, California. Basis100 will purchase of 100% of the
outstanding shares of Solimar.Net in an all cash transaction valued at US$24
million. Solimar’s strategic advantage is its advanced property valuation
technology, marketed to Fortune 500 banks, mortgage lenders, brokers, loan
portfolio securitizers and other financial institutions across the United
States. Basis100 will create a Delaware, US-based corporation to support the
new subsidiary and additional activities in the US. Basis100 recently raised
CDN$52 million through the sale of special warrants. Acquires
GolfServ Online

SUNNYVALE, Calif. — announced the acquisition of GolfServ
Online Inc. GolfServ will become a wholly owned subsidiary of The
acquisition of GolfServ’s syndication business model adds two additional
revenue streams to licensing fees and advertising revenue.
Financial terms of the deal were not disclosed. investors include
Sequoia Capital, Oracle Venture Fund, Sumitomo Corp., The New Economy Fund,
Glynn Ventures, Damac Investors Inc., Comdisco Ventures, and others. GolfServ
earlier received an equity investment from CNN/Sports Illustrated

Healtheon/WebMD to
Acquire Envoy Unit from Quintiles Transnational

ATLANTA and RESEARCH TRIANGLE PARK, N.C. — Healtheon/WebMD Corp. (Nasdaq:
HLTH) and Quintiles Transnational Corp. (Nasdaq: QTRN) announced a
definitive agreement for Healtheon/WebMD to acquire Quintiles’ electronic data
interchange unit, ENVOY Corp., the largest provider of healthcare electronic
data interchange products and services to the healthcare sector. With this
acquisition, Healtheon/WebMD will process almost 2 billion transactions a year
for its healthcare customers. ENVOY is the largest processor of healthcare EDI
transactions in the U.S., including pharmacy, medical, dental and patient
statement transactions. Quintiles will receive 35 million shares of
Healtheon/WebMD stock and $400 million cash from Healtheon/WebMD, for a total
consideration of approximately $2.5 billion.

ZipLink Fuels
International Expansion Through Strategic Acquisition

LOWELL, Mass. — ZipLink Inc. (Nasdaq: ZIPL), a national
wholesale Internet connectivity provider, acquired Interhop Network Services
Inc. of Toronto, Canada. This acquisition expands ZipLink’s geographic reach
into Canada, enabling the Company to provide broader Internet access for its
US-based customers. Terms of the deal were not disclosed.

M&A West

SAN BRUNO, Calif.– M&A West Inc. (OTC BB: MAWI), a company that
develops, invests in and operates Internet and technology-related companies,
acquired the finance and investment-related Web site
Terms of the deal were not disclosed. The site provides link guides for
individual stocks, mutual funds, earnings information, IPO’s and more. The site
manages over 1.2 million news and information links for more than 8,000
publicly traded companies.

Classified Ventures
Acquires Minority Stake in Marketdrive Interactive

ORLANDO, Fla.–, a division of Chicago-based Classified Ventures
Inc., announced an agreement to launch a private labeled version of the
customer relationship management technology produced by Marketdrive Interactive
Inc. to be named ServiceCenter. Additionally, Classified Ventures Inc. will
acquire a minority investment in Marketdrive. Terms of the agreement were not
disclosed. Marketdrive develops personalized Web pages that enable car owners
to obtain customized information about their vehicles from their automotive
dealers. Classified Ventures was formed by eight media companies — Central
Newspapers Inc., Gannett Co. Inc., Knight Ridder, The McClatchy Company, The
New York Times Company, The Times Mirror Company, Tribune Company and The
Washington Post Company.

Surge Components Buys

DEER PARK, N.Y.– Surge Components Inc. (NASDAQ: SRGE) has agreed to
acquire Inc. Surge Components will issue 1,821,400 Class B
common shares (about $12.8 million) of Surge Components Inc. in exchange for
all issued and outstanding shares of is a
business to business web-based provider of encrypted e-mail solutions.

in XTRA On-Line

ATLANTA — WORLDSPAN purchased a 25 percent share in XTRA On-Line Corp.,
developers of, an Internet-based corporate booking and travel
management tool. WORLDSPAN’s equity investment in XTRA On-Line is part of a
broader strategic relationship that includes marketing, technical and product
components. Terms of the deal were not disclosed. Sue Powers, vice
president – sales and marketing for WORLDSPAN, will represent the company on
XOL’s board of directors.

Sonic Foundry to
Acquire Jedor

MADISON, Wis. — Sonic Foundry Inc. (Amex: SFO), a developer and
marketer of Internet media software tools, services, and systems, will acquire
all of the outstanding stock of Jedor Inc., a Canadian-based developer of
leading edge image and animation technology. Terms of the agreement were not
disclosed. Jedor’s Viscosity product allows the user to seamlessly edit and
arrange frames of animation or video sequences.

Fund News

CMGI and
@Ventures Launch New $1 Billion Technology Venture Capital Fund

ANDOVER, Mass./MENLO PARK, Calif.– CMGI Inc. (NASDAQ: CMGI) and its venture
capital affiliate, @Ventures, launched the @Ventures Technology Fund. The new
venture fund will focus exclusively on investing in and supporting the rapid
development and growth of Internet enabling technologies and infrastructure
companies that are synergistic with the CMGI and @Ventures network. The fund
will total up to $1 billion in capital and is immediately available for
investment in this sector of the Internet economy. The fund will be managed by
Lior E. Yahalomi, managing partner of the @Ventures Technology Fund.
Yahalomi joins @Ventures from his previous position as vice president for new
ventures at Gateway. William J. Hawkins will join the @Ventures
Technology Fund as a general partner serving the East Coast. Hawkins came to
CMGI/@Ventures last year after a 4-year tenure with America Online, serving
most recently as vice president of advanced technology.

Technology Ventures Closes $400 Million Investment Fund

WALTHAM, Mass. and PALO ALTO, Calif.– Advanced Technology Ventures, a
venture capital firm focused on investments in emerging growth companies in
Internet, communications and health care technologies, announced that its
latest fund, ATV VI, closed at $400 million. The largest of ATV’s investment
funds to date, ATV VI brings ATV’s total capital under management to
approximately $750 million. With ATV VI, the firm will target investments in
electronic commerce, web infrastructure, application software, communications
equipment and IT services. Within health care, ATV will continue its focus on
medical devices, pharmaceutical outsourcing and e-health. ATV said it plans to
commit approximately 80 percent of the funds in ATV VI to information
technology markets, with the remaining 20 percent earmarked for health care and
medical technology ventures. The bi-coastal firm will also seek to balance its
funding choices geographically, splitting roughly 80 percent between these two
U.S. technology hubs and the remainder targeted overseas.

Adam Dell Founds
Impact Venture Partners

NEW YORK– Impact Venture Management LLC and its principal, Adam Dell,
announced the commencement of operations of Impact Venture Partners LP, a
venture capital fund, which is designed to bring West Coast venture capital
entrepreneurial strategy and style to the Northeast. The fund will invest in
and help manage early stage Internet companies. The fund recently raised $100
million from a variety of sources, including Frank Quattrone, John Mumford, MSD
Capital and FLAG Ventures; as well as Dell himself. Additional investment
partners in Impact Venture Partners include Accel Partners, AT&T Ventures,
Austin Ventures, Benchmark Capital, Bessemer Ventures, Tech. Crossover
Ventures, Crosspoint Ventures, Hummer Winblad, Idealab!, Internet Capital

roup, Kleiner Perkins, MSD Capital, Platinum Venture Partners, SOFTBANK
Ventures, TL Ventures and 21st Century Internet Partners. Impact Venture
Partners has already invested $30 million of the $100 million in: The National
Transportation Exchange,, Centerbeam, Opus360/,, and

NextGen Capital
Raises $15 Million to Date for Second Fund

FAIRFAX, Va.– NextGen Capital LLC closed the first round of its venture
capital fund, NextGen Fund II, with $15 million and expects to reach $25
million before closing the fund to new investors. Focused on early stage
technology and Internet companies, NextGen Fund II will make equity investments
ranging from $250,000 to $2 million; approximately 10 percent of the new fund
is earmarked for investments in seed stage companies. The fund will invest in
companies headquartered in the mid-Atlantic region.

Grand Central
Holdings Closes Second Round of Capital for Early Stage Partnerships

New York — Grand Central Holdings raised a second round of capital which it
will use to accelerate the size and growth of its internet network. Grand
Central continues to partner with and provide first and second round financing
and management resources to internet-related companies based in the Northeast
that have yet to receive significant venture capital funding. Over the next
twelve months the company expects to partner with 12-24 media, technology, and
ecommerce companies in which it will invest up to $5 million each. Grand
Central Holdings is structured as a holding company and is considering a public
offering. Current investors include venture capital funds, university
endowments, wealthy families, professional service firms, investment bankers,
and partners at investment companies that focus on later stage investing.

Who’s Who &
Where Taps Bruce
Benson as CEO

NEW YORK — iWeb hired advertising, technology and media veteran Bruce
as chief executive officer. Before joining iWeb, Benson was
executive vice president of corporate strategy and technology of Young &
Rubicam, where he was responsible for Internet strategy and managed the global
coordination of Y&R’s technological resources. Young & Rubicam led a $3
million investment round in iWeb in September 1999.
Names Gary Marcotte CFO

PASADENA, Calif. —, a popular online pet site, appointed
Gary Marcotte as chief financial officer. Marcotte joins
from The Walt Disney Company, where he served as chief financial officer and
vice president of Disney regional entertainment. is backed by
idealab!, idealab Capital Partners and Global Retail Partners, among

DLJ’S Sprout Group
Adds Rakesh Sood as a General Partner

NEW YORK– Donaldson, Lufkin & Jenrette (NYSE:DLJ) announced that
Rakesh Sood, an e-commerce analyst with Goldman Sachs, has joined the
Sprout Group, DLJ’s venture capital arm, as a general partner in its Menlo
Park, CA. office. Sood was a vice president in the internet/on-line software
and services group at Goldman, Sachs & Co. and headed the E-Commerce
sector, with a special focus on B2B.

New Executives
Join Management Team

NEWTONVILLE, Mass.– NewMediary.Com, a provider of online directory services
for the B2B marketplace, expanded its executive management team. Claudine
, former director of marketing at Forrester Research, was named to
the position of vice president of marketing. David Gersh, previously
director of business development at Switchboard.Com, was appointed to the
position of vice president of business development. The company recently
completed a
$5 million round of venture capital funding from Commonwealth Capital,
Advanced Technology Ventures, and Still River Fund.

Enterworks Adds
John Salimbene as VP Worldwide Marketing

ASHBURN, Va.– Enterworks Inc., a provider of real-time cataloging and
process automation solutions for enterprise portals and e-marketplaces, named
John Salimbene to vice president of worldwide marketing. Most recently
he served as president and COO of MemorizeUSA. Enterworks recently announced
the completion of a
$25 million round of private funding from several institutional investors,
including lead investor General Electric Pension Trust, which is managed by GE
Investment Corp. Other investors include Chartwell Capital Investors II LP,
Jefferies & Co. Inc., J. & W. Seligman & Company, and Tudor
Investment Corp.

Patrick Lopker
Named Senior VP and Chief Financial Officer of

SANTA MONICA, Calif.–, an online business-to-business
marketplace that connects buyers and sellers of business products and services,
appointed Patrick Lopker to the position of senior vice president and
chief financial officer. Lopker joins from The Walt Disney Company
where he spent the last 14 years, most recently as executive vice president and
chief financial officer of Disney/ABC Cable Networks. has
raised nearly $50 million in VC funding from investors that include Times
Mirror Chandler Trust Ventures, CMGI’s @Ventures, Redp

oint Ventures, eCompanies
Venture Group, Morgan Stanley Dean Witter Ventures, US Venture Partners, Intel
and a number of angel investors.
Appoints George Strait as SVP of Content

FOSTER CITY, Calif. —, an Internet resource for all aspects of
parenting and childcare, announced that George Strait, previously ABC’s
Chief medical correspondent for over 15 years, joined the company as senior
vice president of content. Working in conjunction with the Dr. Benjamin Spock
Trust and Dr. Spock’s widow, Mary Morgan, a group of Internet and medical
professionals founded in 1999. The company is funded by angel
investors and will launch in May 2000.

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