VC Buzz – $855.45+ Million in Today’s Deals

New in the News



Brigade Solutions, Catapulse, Cendex, Chinas Markets, ChinaWeb, Cornerstone Retail Solutions, Creative Planet, DeRemate.com, Digital Archaeology, Digital Fountain, Eduprise, efinanceworks, EmployeeService.com, energyOn.com, Ennovate Networks, eRealty.com, Glyphica, HardCloud, HealthAnswers, Human Code, I-Group, iMedium, Infonautics, infoUSA.com, IntraLinks, IronPlanet, Jamcracker, LivePerson, Logistix, Loudcloud, Manna, MDeverywhere, MedCenterDirect.com, Media Technology Ventures, MimEcom, Motiva, MS2, NaviNet, Netfish Technologies, notHarvard.com, Odimo.com, Perficient, ProcureNet, Rhythms NetConnections, SAQQARA Systems, ShopLink.com, siteROCK, Sonicbox, Sorcity.com, Super Pharm, TechSpace, UPS e-Ventures, Weave Innovations, Xcelera.com, Zhone Technologies







Deal News



Rhythms NetConnections Raises $250 Million in New Equity Capital



ENGLEWOOD, Colo., and DALLAS — Rhythms NetConnections Inc. (Nasdaq: RTHM) agreed to terms for a $250 million financing in new equity capital to continue expansion of its U.S. network and facilitate growth of its subscriber base. Rhythms, a provider of digital subscriber line-based, high-speed Internet access and networking solutions, will receive this funding from an affiliate of Hicks, Muse, Tate & Furst. As a part of the agreement, Hicks Muse received warrants to invest up to an additional $280 million in Rhythms common stock over a multi-year period. At closing and assuming conversion of the Preferred Stock, Hicks Muse will own approximately 8 percent of Rhythms’ outstanding common stock. Hicks Muse partner Michael J. Levitt will become a member of Rhythms’ board of directors.


http://www.rhythms.com






Catapulse Secures $75 Million Investment



CUPERTINO, Calif., — Catapulse Inc. raised a total of $75 million — $25 million from Benchmark and $50 million from Rational Software (Nasdaq: RATL). Bruce Dunlevie, Benchmark general partner, will join Catapulse as a board director. Catapulse was co-founded by Paul Levy and Mike Devlin, who also co-founded Rational Software eighteen years ago. Catapulse says it will deliver a set of web-based services that provide the project infrastructure and collaboration framework to create the next generation of large-scale web applications.


http://www.catapulse.com


http://www.benchmark.com


http://www.rational.com






Loudcloud Receives $68 Million in Funding



SUNNYVALE, Calif. — Loudcloud, the company formed by Netscape co-founder Marc Andreessen and other former Netscapers, received $68 million in funding from Benchmark Capital and Morgan Stanley Dean Witter. Loudcloud builds and runs highly reliable and scalable web site infrastructure software and operations for Internet businesses, allowing them to focus on their core business.


http://www.loudcloud.com


http://www.benchmark.com


http://www.msvp.com






Ennovate Networks Raises $59 Million in Mezzanine Funding



BOXBOROUGH, Mass. — Ennovate Networks, a provider of carrier-class IP service provisioning products, received $59 million in mezzanine funding. This brings total investment in the company to $81.5 million. The latest round of funding was led by Lehman Brothers Venture Partners and Pequot Capital Management and includes new investors Kohlberg Kravis Roberts & Co and Tudor Investments as well as strategic partners PSI Ventures and Enron Ventures. Existing investors who also participated in this round include The Sprout Group, Marquette Venture Partners and Spectrum Equity Investors. Ennovate’s products help next-generation carriers and network service providers increase revenues from existing networks by enabling a new class of differentiated frame relay and business IP services.


http://www.ennovatenetworks.com


http://www.pequotcapital.com


http://www.kkr.com






ShopLink.com Secures $37.5 Million in Strategic Financing



WESTWOOD, Mass.– ShopLink.com, an on-line provider of groceries, household consumables and home concierge services, completed a private equity placement of $37.5 million led by MF Private Capital and BancBoston Ventures. This round of financing will assist in the acceleration of national expansion of ShopLink.com to more than 30 facilities nationwide by 2003. Also participating in this round of financing are existing shareholders Asdale Ltd. and Quantum Industrial Partners. AC Ventures, the venture capital unit of Andersen Consulting, continues to participate with a further substantial financial investment.


http://www.shoplink.com


http://www.mfpcinc.com


http://www.bancbostonventures.com






Odimo.com Secures $36 Million Equity Investment



FORT LAUDERDALE, Fla. — Odimo.com, formerly known as Diamonddepot.com, a large source of certificated diamonds, fine jewelry and brand name watches on the Internet, secured $36 million in private equity investment — $31 million from SOFTBANK Capital Partners and $5 million from The Steinmetz Diamond Group and existing shareholders. Odimo.com is majority-owned by The Steinmetz Diamond Group. STI Ventures, Rough Diamond Traders and The Lipton Group have also invested in the company.


http://www.odimo.com


http://www.sbcap.com


http://www.stiventures.com






Jamcracker Secures $30 Million in First-Round Equity



SUNNYVALE, Calif. — Jamcracker, a Net IT provider, announced its first round of equity and debt financing totaling $42 million. First round participants, led by Internet Capital Group (Nasdaq: ICGE) and Fleet Equity Partners, contributed a total of $30 million in the new company. First Analysis Venture Capital, Kohlberg Kravis Roberts & Co., a handful of angel investors, and Jamcracker management round out the group of equity investors. In addition, Jamcracker has entered into a $12 million equipment financing line from Meier Mitchell & Co., Western Technology Investment and Silicon Valley Bank. Jamcracker aggregates and web-based applications and services from a variety of ASPs into a single, secure and scalable platform, giving customers the flexibility to select the services that work best for them.


http://www.jamcracker.com


http://www.icg.com


http://www.fleetequity.com


http://www.firstanalysisvc.com


http://www.kkr.com






MimEcom Launches With $22 Million Funding



SAN FRANCISCO — MimEcom secured $22 million in its first round funding. The financial backers include Weiss, Peck & Greer Venture Partners, Spectrum Equity Investors, Greylock and the individual partners from KKR, Hellman & Friedman and Thomas Weisel Partners. With this funding, Brion Applegate, managing general partner of Spectrum Equity Investors, and Ravi Mhatre, general partner of Weiss Peck and Greer, join MimEcom’s board of directors. MimEcom’s systems management services lead to faster deployments of highly tuned scalable and secure e-commerce systems.


ht

tp://www.mimecom.com


http://www.wpgvp.com


http://www.spectrumequity.com


http://www.greylock.com






MS2 Receives $20 Million in Third-Round Financing



MOUNTAIN VIEW, Calif. — MS2 Inc., an Internet applications company formed to give product teams the power to create and market winning products faster, received $20 million in mezzanine financing led by Integral Capital Partners. Other investors include El Dorado Ventures, Hummer Winblad, Integral Capital Partners, JAFCO and Worldview Technology Partners.


http://www.ms2.com


http://www.kpcb.com/team/integral


http://www.eldorado.com


http://www.humwin.com


http://www.jafco.com


http://www.worldviewtp.com






Brigade Solutions Raises $20 Million



SAN FRANCISCO — Brigade Solutions, a provider of outsourced Internet customer support services, secured a $20 million investment from Compaq Computer Corp. (NYSE: CPQ), Mohr, Davidow Ventures and additional investors. Brigade provides turnkey outsourced technical support and customer care delivered via email, live chat, phone, and web-based self-service.


http://www.brigadesolutions.com


http://www.compaq.com


http://www.mdv.com






LivePerson Closes $18 Million Round of Strategic Financing



NEW YORK– LivePerson Inc., a provider of real-time sales and customer service technology, received approximately $18 million in strategic financing from Dell Computer Corp. (NASDAQ:DELL) and NBC (NYSE:GE). On January 28, 2000, the company filed a registration statement with the SEC for an initial public offering of its common stock. With the investments from Dell and NBC, the company’s total financing to date has reached $41.5 million, following a $19 million f

inancing round in August 1999, preceded by two initial rounds of financing totaling $4.6 million in early 1999. The LivePerson service enables online businesses to communicate with Internet users in real-time, thereby enhancing the online shopping experience.


http://www.liveperson.com


http://www.dell.com


http://www.nbcmv.com






Eduprise.com Secures $18 Million in Private Placement Funding



RESEARCH TRIANGLE PARK, NC – Eduprise, an e-Learning services company, secured $18 million in private placement funding from Arena Capital Partners, Chase Capital Partners, Frontenac Company and Learning Tree International. Eduprise is a provider of ASP services, web integration and professional consulting services.


http://www.eduprise.com


http://www.chasecapital.com


http://www.frontenac.com


http://www.learningtree.com






EmployeeService.com Receives Additional Funding



SAN FRANCISCO– Web-based human resource, payroll, and benefits administrator EmployeeService.com closed a $15 million third round of funding that was led by eCompanies. First Analysis Venture Capital, the first and largest venture investor in EmployeeService.com, participated in both outside rounds of funding for EmployeeService.com and holds a board seat. The company offers businesses employing between five to 5,000 workers a bundle of services at a fixed per-employee cost.


http://www.employeeservice.com


http://www.firstanalysisvc.com






Digital Archaeology Announces $15 Million in Venture Capital Financing



LENEXA, Kan.– Digital Archaeology Corp., a provider of analytical applications for e-commerce, closed a third round of venture capital funding totaling $15 million. Led by Citigroup Investments, and Davis, Tuttle Venture Partners, contributors also include existing Digital Archaeology backers — Kansas City Equity Partners and Gateway Associates — plus first-time investors, Diamond State Ventures, Kansas Venture Capital, MorAmerica Ventures Group and White Pines Management. Digital Archaeology develops and markets analytic software solutions that help businesses analyze customer behavior and preference across e-commerce and traditional “bricks and mortar” sales channels.


http://www.digarch.com


http://www.gatewayventures.com






IntraLinks Raises $15 Million in Strategic Financing



NEW YORK– IntraLinks raised $15 million in strategic financing from Chase Manhattan Corp., one of the company’s largest customers, and Euclid/eCorporate Partners, a newly formed partnership between eCorporate, a global technology and telecommunications investor, and Euclid Partners. Chase uses IntraLinks’ Internet-based communication services for secure communication and collaboration with clients, legal advisors, institutional investors and other external business partners.


http://www.intralinks.com


http://www.chase.com


http://www.euclidpartners.com






Manna Receives $14 Million in Second Round



BOSTON– Manna Inc. garnered an additional $14.1 million in second round capital funding from IDG Ventures, Robertson Stephens’ Bayview Investors, Advent International, Gemini Capital Management Fund, Apax Partners and Bluewater Capital Management. Both Advent International and Gemini Capital invested in Manna during its first round of financing. Manna’s FrontMind is a personalization solution that combines self-updating customer behavior models that help e-marketers understand and predict customers’ behavior with an easy to use command center that gives the e-marketer instant control over marketing initiatives.


http://www.mannainc.com


http://www.mannainc.com


http://www.rsco.com


http://www.adventinternational.com


http://www.gemini.co.il


http://www.apax.com






Motiva Raises $13M in New Funding



SAN DIEGO– Motiva, a provider of design change management solutions for e-business, secured $13 million in equity financing, with the lead investment coming from Global Retail Partners. As part of this $13 million round, Motiva received continuing support from existing venture capital investors Innocal, Bay Partners and NewTek, and Motiva’s strategic partner, Autodesk. Motiva eChange Solutions equip customers to respond to unique customer requirements, accelerate design change and new product development, and connect worldwide business teams with suppliers and customers via the Internet.


http://www.motiva.com


http://www.innocal.com


http://www.bay

partners.com






SAQQARA Secures $12 Million in Second-Round Financing



SAN JOSE, Calif.– SAQQARA Systems, a provider of “Content for Commerce” solutions that enable the management, exchange and selection of product information throughout the business-to-business eCommerce infrastructure, secured $12 million in a second round of funding from GE Equity, Edgewater Funds and Vision Capital. SAQQARA’s Commerce Suite of web-based software applications enables businesses to create complete and structured product information databases to enable advanced product selection through a “search and compare” process known as Step Search and product configuration via rules-based guided buying.


http://www.saqqara.com


http://www.equitycapital.com


http://www.visioncap.com






infoUSA.com Completes $11.6 Million in First Round Funding.



FOSTER CITY, Calif.– infoUSA.com Inc., (Parent company, infoUSA Inc., Nasdaq: IUSA), an online provider of proprietary business and consumer databases, Internet white and yellow pages and directory assistance services, closed $11.6 million in equity financing. The figure includes a previously announced commitment of $10 million from Trident Capital plus additional funding from Sands Brothers & Co., Yahoo! Inc., and other private investors.


http://www.infousa.com


http://www.tridentcap.com


http://www.sandsbros.com


http://www.yahoo.com






MDeverywhere Adds $11 Million in Working Capital



DURHAM, N.C. — MDeverywhere, a provider of mobile Internet-based automation tools for physicians, raised an additional $11 million in equity from Advent International, Acacia Venture Partners, and its first venture investor, Monarch Capital Partners. The company is receiving $5 million each from Advent International and Acacia Venture Partners. Monarch Capital Partners is adding an additional $1 million to the previous $2 million invested in 1999. MDeverywhere’s lead application, EveryCharge, is a Personal Digital Assistant-based electronic charge capture tool with over 100,000 billing rules that can be applied at the point-of-care. With EveryCharge, physicians carry hand-held digital devices to capture real-time diagnoses, treatments and other billing information that is verified for compliance through an onboard rules engine.


http://www.mdeverywhere.com


http://www.adventinternational.com


http://www.acaciavp.com






eRealty.com Raises $10M



HOUSTON — eRealty.com, an online residential real estate brokerage, raised $10 million from TL Ventures and Polaris Venture Partners. eRealty currently provides its online real estate brokerage services in Houston and Austin, Texas, and plans to be in business in the Dallas/Fort Worth Metroplex in February. A multi-state roll-out will follow shortly.


http://www.erealty.com


http://www.polarisventures.com


http://www.tlventures.com






IronPlanet Receives Venture Funding



MENLO PARK, Calif.– IronPlanet closed its first round of venture funding of $10 million from Kleiner Perkins Caufield & Byers and Accel Partners. Later during the first quarter of this year, IronPlanet will launch a Web-enabled full service brokerage for used heavy construction and mining equipment. In addition, IronPlanet will provide standardized comprehensive, independent equipment inspection reports and will fully insure all transactions.


http://www.ironplanet.com


http://www.kpcb.com


http://www.accel.com






notHarvard.com Raises $8.5 Million in First Round Financing



AUSTIN, Texas– notHarvard.com attracted more than $8.5 million in its first round of financing led by Austin Ventures with additional investment from TL Ventures as well as a number of internet angels including Patrick McGee, founding partner of Brazos Investment Partners, Daniel Jinich of Hicks, Muse; Dan Routman of Yahoo/Broadcast.com, Gene Lowenthal, partner at Sanchez Capital Partners and David Kahn, executive vice president of Grupo TeleCable. The financing also included $2 million of venture financing by Silicon Valley Bank. The company says it uses free online education as a permission-based, sales and marketing weapon.


http://www.notHarvard.com


http://www.austinventures.com


http://www.tlventures.com






MedCenterDirect.com Receives First Round Financing



ATLANTA — MedCenterDirect.com, a health care e-procurement company, completed its initial $8 million round of equity financing and established strategic business partnerships with both for-profit and not-for-profit health care networks. MedCenterDirect.com’s fully integrated cost management platform l

inks clinicians and administrators with suppliers in a clinically focused, efficient procurement process. Terms of the deal were not disclosed.


http://www.medcenterdirect.com






Glyphica Receives $8 Million in Financing



MOUNTAIN VIEW, Calif. — Glyphica, a pioneer of business-to-business Internet workplace solutions, announced that the company closed an $8 million round of financing during the company’s second quarter, ending December 31, 1999. The financing was led by Viridian Capital and included H&Q Venture Associates, SAP Ventures and Dain Rauscher Wessels. Previous investor Adobe Ventures also participated in this round. Willa Seldon, general partner at Viridian Capital, joined Chris Hollenbeck of H&Q Venture Associates on Glyphica’s board of directors.


http://www.glyphica.com


http://www.viridian-capital.com


http://www.hqva.com






Cornerstone Retail Solutions Receives $8 Million in Venture Finance



AUSTIN, TEXAS– Cornerstone Retail Solutions, a provider of Java-based software solutions for multi-channel retailing, received $8 million in venture funding. The lead investor is SSM Ventures with participation from Lovett Miller and Jefferson Capital Partners. Cornerstone will use the capital infusion to accelerate time-to-market of its ExtendYourStore product line and to intensify its sales and marketing initiatives in the retail industry


http://www.cornerstoneretail.com


http://www.ssmventures.com


http://www.jeffersoncapital.com


http://www.lovettmiller.com






siteROCK Receives $7.5 Million in Venture Funding



EMERYVILLE, Calif. — A new services company, siteROCK, received $7.5 million in venture capital from two prominent firms, Mohr, Davidow Ventures and Weiss, Peck and Greer Venture Partners. SiteROCK provides around-the-clock specialists who monitor and support ebusiness systems. siteROCK services are delivered independent of a co-location facility, network provider, or equipment vendor.


http://www.siterock.com


http://www.mdv.com


http://www.wpgvp.com






Netfish Technologies Receives $7 Million Third Round Equity Financing



SANTA CLARA, Calif. — Netfish Technologies, a provider of XML-based business-to-business e-commerce solutions, completed a $7 million third round of private equity financing from J. H. Whitney & Co. and other investors. The new funding brings Netfish’s total investment equity to more than $12 million. The Netfish XDI System integrates with existing ERP Systems, making it easy to automate and manage the work flows for complex B2B transactions between trading partners with different applications, formats and systems.


http://www.netfish.com


http://www.jhwhitney.com






Digital Fountain Closes $7 Million in Initial Investment



SAN FRANCISCO — Digital Fountain, developers of innovative technologies for high-volume digital content delivery, closed $7 million in venture funding. Initial investors, led by Hambrecht & Quist Venture Associates, include Adobe Ventures, Cisco Systems, Sony and Texas Instruments. Digital Fountain develops technologies that enable massively scalable and highly reliable distribution of digital content over IP multicast networks, to an almost limitless number of recipients — whether consumers on the Internet, corporate users on an intranet or extranet, or multiple caches or mirrored servers. Cliff Meltzer joined the company as chief executive officer and president after seven years at Cisco Systems where he held numerous senior positions, including senior vice president of Cisco Systems’ IOS technologies division.


http://www.dfountain.com


http://www.hqva.com






iMedium Secures $7 Million in Second Round Financing



WAYNE, PA — iMedium, a visual commerce company, secured a $7 million second round equity financing from Safeguard Scientifics (NYSE:SFE), TL Ventures and Pennsylvania Early Stage Partners. Through its proprietary See!Commerce technology, iMedium embeds e-commerce and advertising opportunities into contextual scenes, photos or still images on the Internet. This powerful new visual commerce medium allows end users to easily and effectively “shop the picture.”


http://www.imedium.com


http://www.safeguard.com


http://www.tlventures.com


http://www.paearlystage.com






HardCloud secures $6.5 Million in First Round Funding



PALO ALTO, Calif. — HardCloud secured $6.5 million in Series A funding from eCompanies and Intend Change. HardCloud is building a ‘lifestyle network’ that serves as a lifeline between individuals and adventure sports activities, including surfing, snowboarding, ska

teboarding and cycling. HardCloud.com is expected to launch in Spring 2000.


http://www.hardcloud.com


http://www.ecompanies.com


http://www.intendchange.com






Perficient Receives $5.6 Million in Private Placement



AUSTIN, Texas — Perficient (Nasdaq: PRFT) completed a private placement of common stock in which six institutions participated. A total of 400,000 shares of common stock were newly issued, resulting in gross proceeds to the company of $5.6 million. Certain shareholders sold the remaining 180,000 shares of common stock. Perficient enables Internet software companies to achieve success by providing them dedicated virtual professional services organizations to deploy their software.


http://www.perficient.com






Cendex Closes First-Round Financing



FALLS CHURCH, Va. — Cendex Corp., a developer of NetMarkets, closed its first round of financing for $2.25 million. The funding enables Cendex to further develop its recently announced for-profit, joint venture, Packexpo.com, an online packaging marketplace. The venture capital was placed by Mid-Atlantic Venture Funds and Hickory Venture Group. Packexpo.com is a for-profit, joint venture between Cendex and the Packaging Machinery Manufacturers Institute. PMMI also contributed an additional $2 million to the joint venture.


http://www.packexpo.com


http://www.hvcc.com


http://www.mavf.com






Sonicbox Receives First Round of Funding



MOUNTAIN VIEW, Calif. — Sonicbox Inc., a supplier of Web radio imBand Tuning products, acquired its first-round of venture-capital funding from Hambrecht & Quist Asia Pacific. In addition to funding from H&Q Asia Pacific, Sonicbox is backed by numerous private investors in the radio and entertainment industry. The total investment includes several million dollars. The Sonicbox imBand Remote Tuner is a PC add-on that lets consumers with a broadband Internet connection enjoy a wide variety of Web radio programming anywhere in their home through standard FM receivers. Sonicbox recently acquired StreamQuest.


http://www.sonicbox.com






Maveron Invests in Weave Innovations



SANTA CLARA, Calif.– Maveron LLC made a strategic investment in Weave Innovations, creat

ors of the StoryBox platform. Other investors include Eastman Kodak, Pacific Century CyberWorks, The Phoenix Partners, Peterson Ventures and Ridge Ventures. Zack Herlick will join the Weave Innovations board of directors. The StoryBox platform will connect cameras, film, and picture frames in a worldwide network for viewing and sharing digital images — with or without a PC.


http://www.weaveinnovations.com


http://www.maveron.com






Logistix Receives Strategic Investment From GE Equity



FREMONT, Calif.– Logistix, a company that designs, builds and manages value chain solutions, received an equity investment from GE Equity. With the investment, GE Equity becomes a Logistix strategic partner, part owner and will serve on the company’s board of directors. Logistix is currently expanding its capabilities in electronic commerce, eFulfillment services, and supply chain consulting.


http://www.logistix.com


http://www.equitycapital.com






Sorcity.com Announces Strategic Investment



DALLAS– Gearing up for a first round of venture financing, Sorcity.com announced a strategic investment made by Paint Management Co., a hedge fund manager located in the Cayman Islands, British West Indies. This investment, the size of which was not disclosed, will allow Sorcity.com to process higher transaction volumes and make ongoing systems enhancements. Sorcity.com is an all-inclusive reverse-auction service for the business-to-business market.


http://www.sorcity.com






Internet Fact of the Day



The worldwide market for information appliances will exceed 89 million units, or $17.8 billion, in 2004, up from a market of 11 million units and $2.4 billion in 1999, according to new research from IDC.






Reader’s Digest Invests in Chinas Markets



PLEASANTVILLE, N.Y. — The Reader’s Digest Association (NYSE: RDA, RDB), acquired an equity interest in Chinas Markets Ltd., a Hong Kong-based Internet company whose flagship online product, e-finet.com, is one of the most popular Web sites in the region and a primary online source of financial and investment information. Under terms of the deal which were not disclosed, Reader’s Digest, the lead strategic investor, acquired 12 percent of the company. Other major investors include GE Equity.


http://e-finet.com


http://www.readersdigest.com


http://www.equitycapital.com






Human Code Acquires Top Drawer Productions



AUSTIN, Texas — Human Code, an interactive media developer, is acquiring Top Drawer Productions, an Austin-based multimedia developer of custom e-learning applications for educational publishers and corporate training. Terms of the deal were not disclosed. Human Code received venture investments from Austin Ventures and Applied Technology in 1995 and 1999.


http://www.humancode.com






CITIC Joins ChinaWeb Investor Group



BEIJING — ChinaWeb Ltd., China’s largest online provider of bilingual financial news and services, announced that China International Trust and Investment Corp. (CITIC) has taken a 10% equity position in the company. CITIC is China’s largest diversified financial institution. Other investors include the Stock Exchange Executive Council of China; the South China Morning Post; Talisman Capital; the China Foreign Exchange Consulting Company, Central State Bond Registration and Clearance LLC, and China Merchants Bank.


http://www.chinaweb.com






Terra Networks Acquires 30% of DeRemate.com



MADRID, Spain — Terra Networks S.A. (Nasdaq: TRRA), the Internet subsidiary of Telefonica S.A., and DeRemate.com, the biggest on-line auction company in Latin America, signed a strategic alliance through which Terra Networks acquires 30% of the company. Terra currently provides Internet access services in Spain, Brazil, Mexico, Chile, Peru, Guatemala and the United States and operates Internet portals serving those countries and Argentina. Terra plans to launch new portals in other Latin American countries. DeRemate.com has raised $12 million in capital from Merrill Lynch, E-Quest, Newbridge and SLI.


http://www.terra.com






Creative Planet Acquires Animation World Network Site



NORTH HOLLYWOOD, Calif. — Creative Planet, a network of business-to-business Web sites for creative professionals, acquired Animation World Network. Terms of the acquisition were not disclosed. Animation World Network serves as the largest professional animation community on the Internet, providing visitors with comprehensive services and information, focusing on animator profiles, independent film distribution, commercial studio activities, CGI and other animation technologies, as well as in-depth coverage of current events in all fields of animation.


http://www.creativeplanet.com


http://www.awn.com






Super Pharm Joins e- Commerce Venture



ROSH HAAIN, Israel — Internet Gold (Nasdaq: IGLD), a

n internet services provider in Israel, announced that Super Pharm, a major Israeli drug store chain, will join Internet Gold’s e-commerce joint venture and will hold 20 percent of the joint venture’s equity. Super Pharm has acquired its 20 percent from Eurocom. The new equity split between the partners is Internet Gold 50.1 percent, Super Pharm 20 percent, Isracard 10 percent, Bank Hapoalim 10 percent, and Eurocom 9.9 percent. The e-Commerce company, which is managed by David Bichovski, will offer consumers products and services through a virtual shopping mall.





Zhone Acquires Roundview



OAKLAND, Calif.– Zhone Technologies, a company that builds total-delivery solutions for voice, data, and content services, acquired Roundview, a premier engineering firm developing project-oriented software for Internet networking technologies. Terms of the deal were not disclosed. Zhone’s initial investors include Kohlberg Kravis Roberts & Co., Texas Pacific Group, and New Enterprise Associates.


http://www.zhone.com






Xcelera.com Acquires Minority Holding in e-game.com



GRAND CAYMAN, British West Indies– Xcelera.com Inc. (AMEX:XLA), owner of Mirror Image Internet and other Internet companies, acquired a 30 percent holding in e-game.com, an Internet developer and distributor of custom-made adgames for online advertisers. Initially marketed in Sweden, adgames are customized to include an advertiser’s products. In addition, the adgames are developed specifically for an advertiser’s brand, product and target groups.


http://www.e-game.com


http://www.xcelera.com






Infonautics Acquires Media Portal NewsDirectory.com



WAYNE, Pa. — Infonautics (Nasdaq: INFO), a provider of personalized information agents and Internet services, acquired one of the Internet’s first media portals, NewsDirectory.com. The addition of the site will provide the company with access to comprehensive local news sources for its Infonautics Sleuth and Search and Reference sites. Terms of the transaction were not disclosed.


http://www.newsdirectory.com


http://www.infonautics.com






American Power Conversion to Acquire energyOn.com



WEST KINGSTON, R.I. — American Power Conversion (Nasdaq: APCC) agreed to purchase energyOn.com in a cash transaction that is expected to close during the first half of 2000. energyOn.com was one of the first independent information and access resources for residential and commercial consumers in U.S. deregulated ener

gy markets. energyOn.com’s service enables consumers to shop the best available rate and service offered by area electricity and natural gas providers.


http://www.apcc.com


http://www.energyon.com






Fund News



Capital Z Partners & General Atlantic Partners Launch efinanceworks



NEW YORK — Capital Z Partners and General Atlantic Partners announced the creation of efinanceworks LLC, a new independent company focused exclusively on the formation, support and accelerated development of efinance businesses worldwide by providing access to a combination of capital, industry expertise and business-development infrastructure. Capital Z Financial Services Fund II and General Atlantic Partners jointly committed $300 million initially to capitalize the new business.


http://www.efinanceworks.com


http://www.capitalz.com


http://www.gapartners.com






Media Technology Ventures Closes $170 Million Seed Fund



SAN FRANCISCO– Media Technology Ventures, a family of early and mid-stage venture capital funds investing in digital commerce and enabling technology companies, closed Media Technology Ventures III LP, the company’s third corporate partnering venture fund. MTV III includes investments from 20 major multi-national corporations including new investors Dow Jones & Co., Procter & Gamble, JP Morgan, A&E Networks, Marks & Spencer, Diageo, Rogers Communications and Best Buy. The new MTV III fund brings the total capital under management to $400 million. Twelve of the corporate investors in MTV III are return investors that have participated in the earlier Media Technology Ventures funds. MTV III will be managed under Allegis Capital, the management company for the family of Media Technology venture funds.


http://www.mtventures.com






Safeguard Scientifics Acquires Interest in TechSpace, Creates TechSpace Ventures



WAYNE, Pa. — Safeguard Scientifics (NYSE: SFE), an Internet-centric holding and operating company, acquired an equity interest in TechSpace, a New York-based “one-stop shop” for entrepreneurs that offers technologically advanced full-service office environments and associated services to early and expansion stage Internet-centric companies. Additionally, Safeguard and TechSpace have created TechSpace Ventures to provide funding for promising start-ups associated with TechSpace to accelerate their growth. Initially, TechSpace Ventures will have $15 million for investment purposes, with plans to bring on other strategic partners to quickly grow the fund. TechSpace houses 40 start-ups in 40,000 square feet of cutting-edge space in Manhattan’s Silicon Alley. TechSp

ace is expanding nationally with sites under construction in San Francisco and Boston. Another site in New York and a site in Toronto are expected to begin construction next month.


http://www.safeguard.com


http://www.techspace.com






UPS e-Ventures Helps Companies Enable Global Commerce



ATLANTA — UPS (NYSE: UPS) has formed a new wholly owned subsidiary, UPS e-Ventures, to be the research, development and incubation arm of UPS e-commerce. UPS e-Ventures is designed to identify and rapidly develop entirely new businesses related to supply chain management and e-commerce. Mark Rhoney, president of the new group, is a 25-year veteran at UPS, most recently as vice president of electronic commerce marketing.


http://www.ups.com






SOFTBANK and I-Group Announce Boston-Based Internet Incubator



BOSTON– SOFTBANK Corp., a leader in Internet business, and the Intercontinental Group, announced the formation of I-Group, a SOFTBANK Affiliate. I-Group,an incubator, features “mentor capital” services, which include management, partnership, investor, and recruitment mentoring; access to SOFTBANK’s powerful “netbatsu” network; and a sustained evergreen venture capital fund. Ron Schreiber is the managing director of I-Group.


http://www.i-group.com


http://www.softbank.com






Who’s Who & Where



ProcureNet Names Reuven Battat President and CEO



FAIRFIELD, N.J. — ProcureNet Inc., a provider of B2B solutions and services, named Reuven Battat, a former top Computer Associates International executive, as president and CEO. At the same time, the company noted that Battat has acquired a significant minority stake in ProcureNet, joining an investor team that includes Thomas H. Lee Partners; Paul Montrone, chairman and CEO of Fisher Scientific and also chairman of ProcureNet; Paul Meister, vice chairman of Fisher Scientific; Fisher Scientific; DLJ Merchant Banking; Chase Capital Partners; and Merrill Lynch. The company was spun off from Fisher Scientific last year.


http://www.ProcureNet.com






R. Scott Jones Named President and CEO of HealthAnswers



AUSTIN, Texas — HealthAnswers appointed R. Scott Jones as president and CEO of its U.S. operations. Prior to joining HealthAnswers, Jones was chief operating officer of PharMerica’s Chronic and Catastrophic Care Division; a division of Bergen Brunswig Corp. HealthAnswers is a diversified e-healthcare company providing healthcare solutions via traditional and new media — including web-based technologies — to r

each the consumer and professional community. The company is backed by Vulcan Ventures, Toronto Dominion Capital, Prime New Ventures, Menlo Ventures, Psilos Group, Texas Growth Fund, Sandler Capital, Waller-Sutton Media Partners, Union Bancal Equities, CIBC Wood Gundy Capital and CODITEL, S.A.


http://www.healthanswersinc.com






NaviNet Appoints Chief Information Officer



ANDOVER, Mass.– NaviNet Inc., a majority-owned operating company of CMGI Inc. (Nasdaq: CMGI), and a provider of private-label Internet access services, appointed Paul R. Hamnett to the position of chief information officer. Most recently he held the position of COO/CTO of SmartRoute Systems, a provider of real-time traffic information and digital content.


http://www.navinet.net






PR Mumbo Jumbo Award



XXXX provides a business-to-business Internet platform for creating Web-based workplaces for interaction, collaboration and commerce tailored to business process and business role.






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