daveliu.com Blog

September 30, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 7:40 pm

Demand Media Inc., a Santa Monica, Calif.-based acdquiror of online content sites and generic Internet domain names, has raised $100 million in second-round funding. 3i Group and Oak Investment Partners co-led the deal, while Spectrum Equity Investors also participated. Demand Media was formed earlier this year with a $120 million infusion from Oak, Spectrum and Generation Capital Partners.

VideoEgg Inc., a San Francisco-based provider of Web-based video publishing solutions, has raised $12 million in Series C funding. Maveron led the deal, and was joined by return backers August Capital and First Round Capital.

3VR Security Inc., a San Francisco-based provider of next-generation video recorders, has secured $9 million of a $17 million Series C round, according to a regulatory filing. Return backers include DAG Ventures, Kleiner Perkins Caufield & Byers and VantagePoint Venture Partners.

BoardVantage Inc., a Menlo Park, Calif.-based provider of secure portals for corporate board work, has raised $5.5 million in fourth-round funding from return backers Bay Partners and Foundation Capital.

Integrated Mobile Inc., a Columbus, Ohio-based provider of wireless managed mobility services, has raised $5 million in private equity funding from Enhanced Equity Fund.

SignStorey Inc., a Fairfield, Conn.-based provider of in-store media networks for the grocery industry, has raised an undisclosed amount of Series B funding. The company only would say that the deal lead was a “Fortune 1000 asset management company,” and that existing shareholder Golden Gate Capital also participated.

Switch and Data, a Tampa, Fla.-based provider of Internet exchange infrastructure, has filed to raise $150 million via an IPO of common stock. It plans to trade on the Nasdaq under ticker symbol SDXC, with Deutsche Banc Securities and Jefferies & Co. serving as co-lead underwriters. Switch and Data shareholders include CapStreet Group, Seaport Capital Partners and Tudor Ventures.

ICF International Inc., a Fairfax, Va.-based consulting and technology services firm, priced 4.67 million common shares at $12 per share, for an IPO take of approximately $56.04 million. It will trade on the Nasdaq under ticker symbol ICFI, while UBS served as lead underwriter. CM Equity Partners was the company’s majority shareholder pre-IPO, and still retains a significant ownership position.

Microsoft Corp. (Nasdaq: MSFT) has agreed to acquire Gteko Ltd., an Israel-based provider of support automation software solutions for personal computers. No financial terms were disclosed, although Israeli newspaper reports put the sale price at around $120 million. Gteko raised $12 million in a 2004 venture capital deal from firms like Intel Capital and Pitango Venture Capital. 

Sun Microsystems Inc. (Nasdaq: SUNW) has agreed to acquire Neogent Inc., an Austin, Texas–based provider of identity management services automation. No financial terms were disclosed. Neogent has raised VC funding from Saber Capital. 

Twisted Pair Solutions Inc., a Seattle developer of IP-based communications software, has raised $9 million in its first round of institutional VC funding. Ignition Partners and Core Capital Partners co-led the deal, and were joined by Chart Venture Partners.

ObjectVideo Inc., a Reston, Va.-based provider of video processing software for physical security applications, has raised $8 million in Series E funding, according to a regulatory filing. Backers include ABS Ventures, CMGI @Ventures, Novak Biddle Venture Partners and Updata Partners.

Fotolog Inc., a New York-based photo blogging community, has raised $4.1 million in Series C funding, according to a regulatory filing. Return backers include 3i Group and BV Capital.

Kurtosys Systems Inc., a New York-based provider of financial reporting software and services, has secured $3.4 million of a $5.15 million Series A deal led by True Ventures, according to a regulatory filing.

DoublePositive Marketing Group Inc., a Baltimore-based provider of sales lead generation solutions, has raised $2.7 million in Series B funding. The Grosnevor Funds led the deal, and were joined by return backers WWC Capital Group, Inner Harbor Brothers (Advertising.com founders) and Stein Kretsinger (former Advertising.com senior executive).

ForteMedia Inc., a Cupertino, Calif.-based provider of voice processing technology for automobile, PC and portable devices, has raised an undisclosed amount of strategic funding from Intel Capital. Existing ForteMedia shareholders include iGlobe Partners, Marvell Semiconductor, Pac-Link Management and UMC Capital.

The Riverside Co. has acquired It’s Just Lunch International, a Palm Desert, Calif.–based franchisor of matchmaking and dating services. No financial terms were disclosed for the deal, which also included participation from company management. 

Shutterfly Inc., a Redwood City, Calif.-based provider of online digital photo services, priced 5.8 million common shares at $15 per share ($13-$15 range), for an IPO take of approximately $87 million. It will trade on the Nasdaq under ticker symbol SFLY, while JPMorgan served as lead underwriter. The company raised around $67 million in total VC funding from firms like Mohr, Davidow Ventures, Sutter Hill Ventures, Granite Ventures and Jim Clark’s Monaco Ventures.

Zavata Inc. (f.k.a. Integreo Inc.), an Atlanta-based provider of BPO solutions for the healthcare market, has acquired Accordis Inc., a Princeton, N.J.-based provider of business office services for hospitals and emergency transport agencies. No financial terms were disclosed. Zavata has raised around $36 million in VC funding from firms like BV-Cornerstone Ventures, Mellon Ventures, Petra Capital Partners and Sequoia Capital India.  

September 28, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 1:03 am

Visto Corp., a Redwood City, Calif.-based mobile access company, has raised $51 million in new venture capital funding. Return backer Oak Investment Partners led the deal, and was joined by DFJ Growth Fund and other existing shareholders like Meritech Capital Partners, DFJ ePlanet Ventures, Rustic Canyon Ventures and Blueprint Ventures. Visto has raised over $250 million in total VC funding since its 1996 inception, including a recap in 2001. 

Neusoft Group Ltd., a Shanghai-based software and solutions provider, has raised $40 million in strategic funding from Intel Capital. Under terms of the agreement, Neusoft will establish a “solution performance optimization competency center” based on Intel architecture and platforms. The deal is subject to regulatory approvals.

GridPoint Inc., a Washington, D.C.-based provider of energy management products, has raised $21 million in strategic third-round funding led by Goldman Sachs. GridPoint raised a $16 million Series B deal earlier this year from Altira Group, Contango Capital and Advantage Capital Partners. 

Ario Data Networks, a San Jose, Calif.-based provider of mid-sized enterprise storage solutions, has raised $8 million. Clearstone Venture Partners and Partech International co-led the deal, and were joined by fellow return backers Mellon Ventures, Evercore Partners, Anthem Venture Partners and Sunsino Ventures. 

oDesk Inc., a Palo Alto, Calif.-based online marketplace for hiring global technical talent and provider of Web-based tools for managing remote staffers, has raised $8 million in Series B funding. Benchmark Capital led the deal, and was joined by return backers Globespan Capital Partners and Sigma Partners. 

Anodyne Health Partners, a Falmouth, Maine–based provider of revenue cycle management solutions for healthcare providers, has raised $5.6 million in new venture capital funding. Backers include Brook Venture Partners, Frontier Capital, Brooke Private Equity Advisors and the Small Enterprise Growth Fund. 

Auctionpay Inc., a Portland, Ore.-based provider of fundraising software and service solutions for the nonprofit community, has raised $5.5 million in Series B funding from Appian Ventures and return backer Maveron. 

GuardID Systems Inc., a San Mateo, Calif.-based company focused on the prevention of online identity theft and fraud, has raised $5 million in first-round funding from Trinity Ventures. 

OpenLogic Inc., a Broomfield, Colo.-based provider of open-source enterprise software stacks and support services, has raised $4.3 million in second-round funding. Backers include UV Partners, Appian Ventures, Village Ventures, Highway 12 Ventures and Red Rock Ventures. 

ETelemetry Inc., an Annapolis, Md.-based developer of network appliances that track such things as bandwidth usage and desktop computing assets, has raised $4 million in first-round funding led by Centripetal Capital Partners. The company was founded in 1999. 

NitroSecurity Inc., a Portsmouth, N.H.-based provider of enterprise network security solutions, has secured $2 million of a $5 million Series C round, according to a regulatory filing. Brookline Venture Partners was joined by return backer First Analysis Corp. 

Genesis Networks Inc., a New York–based provider of global video transmission services over fiber and satellite, has raised an undisclosed amount of second-round funding from Longworth Venture Partners and Masthead Venture Partners. 

NextNine Inc., an Israel-based provider of support automation solutions, has raised an undisclosed amount of new VC funding led by Motorola Ventures. Return backers include Ascend Technology Ventures, Infinity Venture Capital Fund, Ofer Hi-Tech, Yozma Venture Capital Group, Morgan Stanley Dean Witter Private Equity and Redwood Venture Partners. The company previously had raised $34 million in total VC funding since its 1999 inception. 

Duke Street Capital has agreed to acquire UK-based IT services company 2e2 from Gresham Private Equity for £130 million.  

Sandler Capital Management has acquired substantially all of the assets of the Crafts Group from Primedia Inc. (NYSE: PRM) for approximately $132 million in cash. The group will be renamed Enthusiast Media LLC, and publishes nine consumer publications like Creating Keepsakes and McCall’s Quilting.

Audax Group has acquired a majority of Flexstar Technology Inc., a Fremont, Calif.-based provider of data storage testing solutions. No financial terms were disclosed. Rigel Associates and company management also participated in the deal’s equity tranche, while Comerica provided senior leverage financing.  

Block Interest Discovery Service (BIDS) has launched as an alternative trading system for the block trading market. It is being backed by six brokerage firms, although no financial terms were disclosed. The firms are: Citigroup, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS. A CEO announcement will come within the next few weeks, with trading expected to commence in early 2007.

September 27, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 5:25 am

General Atlantic has agreed to acquire a 52% interest in Emdeon Business Services from Emdeon Corp. (Nasdaq: HLTH). The total transaction is valued at approximately $1.2 billion, including $320 million from General Atlantic and $925 million in leverage from Citigroup, Deutsche Bank and Bear Stearns. Emdeon was advised by The Blackstone Group and Citigroup Corporate and I-Banking. Emdeon Business Services provides revenue cycle management and clinical communication solutions for the healthcare market.  

Rebtel Networks AB, a Sweden-based provider of mobile VOIP services, has raised $20 million in Series A funding from Benchmark Capital and Index Ventures.

Air2Web Inc., an Atlanta-based provider of mobile messaging and marketing applications, has raised $25 million in third-round funding. The Carlyle Group led the deal, and was joined by return backers VantagePoint Venture Partners, UPS and company founder Jay Chaudhry. This is Air2Web’s first VC round since 2001, and brings its overall venture capitalization to around $77 million. 

Mavent Inc., an Irvine, Calif.-based provider of automated compliance solutions for the financial services industry, has raised $10 million in Series C funding led by FT Ventures. 

Wallop, a San Diego-based social networking spinout from Microsoft, has raised $10 million in Series B funding. Norwest Venture Partners led the deal, and was joined by return backers Bay Partners and Consor Capital.

Whaleback Systems Inc., a Portsmouth, N.H.-based provider of IP telephony services for small and mid-sized businesses, has raised $7.5 million in Series B funding. Castile Ventures led the deal, and was joined by Egan-Managed Capital and return backer Ascent Venture Partners. 

Enkata Technologies Inc., a San Mateo, Calif.-based provider of enterprise performance management software, has raised $4.88 million in fourth-round funding, according to a regulatory filing. Sigma Partners was joined by return backers ComVentures and Apex Venture Partners. 

Sermo, a Cambridge, Mass.-based online community for physicians, has raised $3 million in Series A funding from Longworth Venture Partners. 

Genbook Inc., a San Francisco-based provider of online advertising solutions, has raised $2.2 million in Series A funding led by Neo Technology Ventures of Australia.

September 26, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 5:01 am

Ecast Inc., a San Francisco-based operator of a broadband-enabled touchscreen media network, has raised $20 million in new venture capital. Focus Ventures led the deal, and was joined by return backers Mobius Venture Capital, Crosslink Capital, DCM and El Dorado Ventures. The company has raised over $80 million in total VC funding since its 199 inception. 

ContextWeb Inc., a New York-based provider of real-time contextual advertising solutions, has raised $15.5 million in Series C funding. Draper Fisher Jurvetson led the deal, and was joined by fellow return backers DFJ Gotham Ventures, Updata Partners and DFJ New England. 

Compellent, an Eden Prairie, Minn.-based provider of data storage and data management solutions, has raised $15 million in new venture capital. Nomura International led the deal, and was joined by return backers Cargill Ventures, Centennial Ventures, Crescendo Ventures and El Dorado Ventures. It has raised more than $53 million in total VC funding. 

Nexaweb Technologies Inc., a Burlington, Mass.-based company focused on helping enterprises deploy Web 2.0 applications, has raised $10 million in Series B funding. Return backers include Egan-Managed Capital, Masthead Venture Partners and Velocity Partners. 

Full Capture Solutions Inc., an East Hartford , Conn.-based provider of predictive solutions for the insurance industry, has raised $7 million in Series B funding. Greylock Partners led the deal, and was joined by return backer Ignition Partners. 

Mobile Cohesion, a Belfast , Ireland-based provider of partner relationship management solutions for the telecom industry, has raised $4.8 million in second-round funding. Enterprise Equity led the deal, and was joined by Viridian Growth Fund and return backers Accel Partners and Cross Atlantic Partners. 

Sterling Capital Partners and Citigroup Private Equity are sponsoring a proposed $8 per share management buyout of Educate Inc. (Nasdaq: EEEE). The company’s stock price closed at $7.06 per share on Friday, and Educate says that it will review the proposal. 

France Telecom has received European Commission approval to sell its 54% stake in directories company PagesJaunes for around €3.3 billion, to a private equity consortium that includes KKR, AXA Private Equity, Eurazeo and Goldman Sachs.

eHealth Inc., a Mountain View, Calif.-based online source of health insurance for individuals, families and small businesses, has set its proposed IPO terms to five million common shares being offered at between $10 and $12 per share. It plane to trade on the Nasdaq under ticker symbol EHTH, with Morgan Stanley and Merrill Lynch serving as co-lead underwriters. The company raised around $86 million in VC funding, from firms like Sprout Group, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, QuestMark Partners and Lake Street Partners. 

Caribe Acquisition Holdings, a portfolio company of Welsh, Carson, Anderson & Stowe, has agreed to acquire ACS Media LLC for Cdn$188 million. ACS Media is the largest publisher of print and Internet advertising directories in Alaska.

RigNet Inc., a Houston, Texas-based provider of managed communications services for the upstream oil and gas industry, has acquired OilCamp AS, a Norwegian provider of communications services to the oil industry. No financial terms were disclosed. RigNet has raised nearly $14 million in VC funding from firms like Altira Group, HitecVision and Sanders Morris Harris, while OilCamp had been backed by HitecVision and TeleVenture Management.  

Siemens Building Technologies Inc. has agreed to acquire VistaScape Security Systems Corp., an Atlanta-based provider of video analytic technology designed to protect critical infrastructure from a broad spectrum of threats. No financial terms were disclosed for the deal, which is expected to close within 30 days. VistaScape has raised over $18 million in VC funding from firms like H.I.G. Capital, Paladin Capital Group, CDP Capital and Visionaria Venture Capital.

September 23, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 1:25 am

Voxant, a Reston, Va.-based provider of a “viral syndication network” for online news, has raised $10.5 million in second-round funding. SoftBank Capital and Court Square Ventures were joined by return backer Longworth Venture Partners.

Telepo Inc., a Sweden-based provider of enterprise communications software, has raised €4 million from Accel Partners.

RingCube Technologies Inc., a Mountain View, Calif.-based provider of portable personal computing software, has raised $4 million in Series A funding led by New Enterprise Associates.

CommVault Systems Inc., an Oceanport, N.J.-based provider of data management software applications, priced 11.11 million common shares at $14.50 per share ($12.50-$14.50 range), for an IPO take of approximately $161 million. It will trade on the Nasdaq under ticker symbol CVLT, while Credit Suisse and Goldman Sachs served as co-lead underwriters. Shareholders include TH Lee Putnam, Sprout Group and DLJ Merchant Banking Partners.

DivX Inc., a San Diego-based provider of video compression technology, priced 9.1 million common shares at $16 per share ($12-$14 range), for an IPO take of approximately $145.6 million. It will trade on the Nasdaq under ticker symbol DIVX, while JPMorgan served as lead underwriter. DivX had raised around $47 million in VC funding from firms like Zone Ventures, WI Harper Group, Insight Venture Partners, Draper Atlantic, Wasatch Venture Fund, Springboard-Harper, Cardinal Venture Capital, Ali Corp. and Cyberlink International Technology Corp.

Seventymm Services Pty Ltd., an Bangalore , India-based online movie rental company, has raised $7 million in second-round funding. Matrix Partners led the deal, and was joined by return backer Draper Fisher Jurvetson.

Packetmotion Inc., a San Jose, Calif.-based provider of enterprise security software, has raised $5.97 million in Series B-1 funding, according to a regulatory filing. Return backers include Onset Venture Partners, Intel Capital and Mohr, Davidow Ventures.

Vignani Technologies Pvt Ltd., an India-based engineering services provider, has raised $4 million in first-round funding from Intel Capital, Jafco and KT Ventures.

Abla-Tx Inc., a Boulder, Colo.-based developer of software-based algorithms to monitor thermal ablation of tumors, has secured $2 million of a $2.5 million Series B round, according to a regulatory filing. Backers include Flagship Ventures and Sequel Venture Partners.

Incisive Media PLC, a listed UK-based business information publisher, is recommending a Gbp199 million cash offer from Apax Partners

Riverbed Technology Inc., a San Francisco-based provider of wide area network performance software, priced 8.4 million common shares at $9.75 per share (above $7-$8.50 range), for an IPO take of $81.9 million. It plans to trade on the Nasdaq under ticker symbol RVBD, while Goldman Sachs served as lead underwriter. The company had raised $56.6 million in VC funding since its 2002 inception, from firms like Accel Partners, Lightspeed Venture Partners, UT Partners, Meritech Capital Partners and Goldman Sachs.

Paradigm Ltd., a Cayman Islands-based provider of enterprise software for the global oil and gas exploration and production market, has filed to raise $200 million via an IPO of common stock. It plans to trade on the Nasdaq, with Lehman Brothers, UBS and Banc of America Securities serving as co-lead underwriters. Fox Paine holds a 92.3% pre-IPO position.

SecureWorks Inc. of Atlanta and LURHQ Corp. of Myrtle Beach , S.C. of have merged, in order to form a single provider of managed information security services. No financial terms were disclosed. SecureWorks has raised around $30 million in VC funding from firms like Alliance Technology Ventures, GE Equity, Mellon Ventures, Noro-Moseley Partners and SBK Capital. LURHQ was backed by Frontier Capital. 

Central American Capital Group has acquired a 49.9% stake in Amnet Telecommunications Holdings Ltd., which provides cable television and broadband Internet access in El Salvador , Costa Rica and Honduras. No financial terms were disclosed. CACG was formed as an acquisition platform by MesoAmerica of Costa Rica , with the Kazma family participating on the Amnet deal.

Pentaho Corp., an Orlando, Fla.-based provider of open-source business intelligence software, has acquired the Weka open source data mining project developed by the University of Waikato in New Zealand . No financial terms were disclosed. Pentaho has raised $13 million in VC funding from firms like Index Ventures and New Enterprise Associates.

Telco Systems, a Foxboro, Mass.-based subsidiary of BATM Advanced Communications ( London : BVC), has acquired the assets of Critical Telecom Corp., an Ottawa-based developer of broadband enabling platforms for IP-based access networks. No financial terms were disclosed. Critical Telecom has raised VC funding from BDC Venture Capital, Crown Ventures, Tellus Ventures and VenGrowth Capital.

CDW Corp. (Nasdaq: CDWC) has agreed to acquire Berbee Information Networks Corp., a Madison, Wis.-based independent IT solution provider, for $175 million in cash. Berbee had raised $17.5 million in 2000 from One Equity Partners and Baird Capital Partners, with Baird still listing Berbee as a portfolio company.

September 21, 2006

Web Too Point Oh?

Filed under: Digital New Media, US Internet — Dave @ 7:55 pm

VentureOne recently released today an amazing stat: more than a quarter of a billion dollars (US$262MM) has been invested in “Web 2.0″ start-ups in the first half of 2006! I don’t know about you but that smells a lot like over funding to me..which means a correction will come eventually.

For those of you who have been living on Mars, the term Web 2.0 was coined in 2003 and refers to the latest generation of Internet-based services companies. VentureOne narrowed its definition to companies with business models organized around a combination of User Generated Content (UGC), networking and collaboration. Web 2.0 start-ups also include technologies like AJAX and real simple syndication (RSS) as well as applications like wikis, podcasts, tagging, blogs and social networks. Note that despite all the hype, Web 2.0 deals represent only a sliver of the $13 billion invested in U.S. start-ups this year. The median deal size for Web 2.0 companies during the first half of the year is $4.4 million, 41% lower than the $7.5 median for venture financings as a whole.

My parting word is that I vote we rejigger the numbering such that we’re now in “Web 3.0″. “Web 1.0″ was the birth of the Internet, “Web 2.0″ was the Dotcom Crash and “Web 3.0″ is the rebirth. That way, we’ll never forget that every industry (Internet included) has a cycle of boom and bust…

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 3:16 am

InvesTools Inc. (Nasdaq: IEDU) has agreed to acquire ThinkorSwim Group Inc., operator of an online brokerage platform. The deal is valued at approximately $340 million, including $170 million in cash and 19.1 million IEDU common shares (30% stake). To help fund the deal, InvesTools will receive a $125 million senior term loan and a $25 million revolving credit facility from JPMorgan. TwinkorSwim raised $22.5 million in VC funding in 2004 from Technology Crossover Ventures. 

DATAllegro, an Aliso Viejo, Calif.-based provider of data warehousing appliances, has raised $22.5 million in Series C funding. Jafco Ventures led the deal, and was joined by Focus Ventures and return backers Adams Capital Management, Intel Capital, Palomar Ventures and Venrock Associates.

Netadmin, a Sweden-based provider of management software for broadband operators, has raised SEK 44 million ($6.06 million) from Eqvitec. 

Dexterra Inc., a Bothell, Wash.-based provider of mobile workforce and field service software, has raised $6 million in additional Series D funding, according to a regulatory filing. This brings the round total to $18 million. Backers include Canaan Partners, Motorola Ventures, Intel Capital, SagusCapital and Sigma Partners.

SoonR Inc. of Campbell , Calif. has raised $6 million in Series A funding. Clearstone Venture Partners led the deal, and was joined by Intel Capital. The company enables mobile access to PC-based information and applications from any cell phone over any carrier network.

Boston Ventures has agreed to acquire a majority stake in En-Touch Systems Inc., a broadband services provider that serves the suburbs of Houston , Texas . No financial terms were disclosed. Sellers included several family trusts, while company management teamed with Boston Ventures. 

AppLabs Technologies, a Philadelphia-based software testing company, has acquired IS Integration, a UK-based IT and business solutions testing consultancy, for $36 million in cash. AppLabs has raised $17 million from Sequoia Capital India, while IS.

Art Technology Group Inc. (Nasdaq: ARTG) has agreed to acquire eStara Inc., a Reston , Va.–based provider conversion solutions for enhancing online sales and support initiatives. The deal is valued at up to $48.3 million, including $2 million in cash, a $6 million cash earn-out and around 15.3 million common shares of ATG stock. Estara raised $17 million in VC funding in 2000, including a $15 million infusion at a $25 million post-money valuation. Backers included Texas Pacific Group, One Equity Partners and JNet Ventures.  

September 20, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 4:52 am

NetStreams Inc., an Austin, Texas-based provider of IP-based audio and video distribution technologies, has secured a total of $7.8 million in venture funding commitments from Austin Ventures, according to a regulatory filing. 

BEZ Systems Inc., a Boston-based provider of performance management software and analytics, has raised $7.5 million in Series C funding. Ascent Venture Partners led the deal, and was joined by return backers Brooke Private Equity Advisors, JMI Equity, the Massachusetts Technology Development Corporation and Velocity Equity Partners.

Eventful Inc., a San Diego-based operator of a global events website, has raised $7.5 million in Series B funding. Bay Partners led the deal, and was joined by return backers Draper Fisher Jurvetson, Omidyar Network and Esther Dyson. 

M5 Networks Inc., a New York-based provider of outsourced IP phone systems, has raised $7.75 million in Series A funding. Edison Venture Fund led the deal with $5 million, and was joined by Greycroft LLC and Milestone Venture Partners. 

Ekahau Inc., a provider of mobile positioning technology, has secured $7 million of a $10 million Series B round, according to a regulatory filing. Return backers include Nexit Ventures. The company was founded in Finland , and now has offices in Hong Kong, Saratoga , Calif. and Reston , Virginia . 

Managed Object Solutions Inc., a McLean, Va.-based provider of business service management solutions, has raised $7 million in Series F funding. Intel Capital was joined by return backers like Lazard Technology Partners, JMI, FT Ventures and Horizon Technology Finance. Managed Objects has raised around $44 million in total VC funding since its 1997 inception. 

Aztek Networks, a Boulder, Colo.-based provider of emergency stand-alone switching and IP gateway solutions, has raised $6.6 million in Series A funding co-led by Sequel Venture Partners and Grotech Capital Group. 

Jacked Inc., a startup focused on media interactivity solutions, has raised $500,000 in seed funding from Provenance Ventures. 

eInstruction Corp., a Denton, Texas–based provider of interactive response systems for the classroom, has acquired FSCreations Inc., a Cincinnati-based provider of educational software that assists teachers in test preparation and administration, lesson planning and student performance assessment. No financial terms were disclosed. EInstruction is a portfolio company of Chicago Growth Partners. 

MedSynergies Inc., an Irving, Texas-based provider of healthcare revenue cycle services, has merged with Practice Performance Inc., a Dallas-based healthcare management company focused on orthopedics, cardiology and OB/GYN. No financial terms were disclosed. MedSynergies is a portfolio company of Financial Technology Ventures.

Fluencee Inc., an Englewood, Colo.-based provider of RFID-enabled asset management solutions, has acquired Mobitrac Inc., a Chicago–based provider of transportation execution systems. No financial terms were disclosed. Fluencee has raised VC funding from DFJ Mercury Venture Partners and Illinois Ventures, while Mobitrac backers include Frazier Technology Ventures, Arch Development Partners, Illinois Ventures, Illinois Finance Authority, Mentor Management and U.S. Venture Partners.  

EMC Corp. confirmed earlier press reports that it will pay around $175 million to acquire Network Intelligence Inc., a Westwood, Mass.-based provider of software that converts enterprise data into compliance and security information. Network Intelligence has raised around $25 million in VC funding from firms like Ascent Venture Partners, Bain Capital Ventures, Egan Managed Capital, Castile Ventures and JMI Equity. In related news, EMC has completed its $2.1 billion buyout of RSA Security (Nasdaq: RSAS). 

September 19, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 5:51 am

LifeSize Inc., an Austin, Texas-based provider of high-def videoconferencing systems, has raised $25 million in Series D funding. Lehman Brothers Venture Capital led the deal, and was joined by return backers Austin Ventures, Norwest Venture Partners, Redpoint Ventures, Sutter Hill Ventures and Pinnacle Ventures. The company has raised around $90 million in total VC funding since its 2003 inception. 

OpSource Inc., a Santa Clara, Calif.-based developer of enterprise infrastructure operations platforms, has raised $20 million in private equity, venture leasing and credit lines. Intel Capital led the Series C equity tranche, and was joined by return backers ComVentures, Artiman Ventures, and Key Venture Partners. Western Technology Investment provided the venture leasing, while Silicon Valley Bank extended an additional line of credit. 

SchoolNet Inc., a New York-based provider of software for helping public school districts improve efficiency and academic achievement, has raised $19 million in Series C funding. Backers include The Carlyle Group, Hamilton Lane and the New York City Investment Fund. 

WrenchHead.com Inc., a White Plains, N.Y.-based online retailer for automotive parts and accessories, has raised $17.88 million in new Series A funding, according to a regulatory filing. Backers include Polaris Venture Partners and MidMark Capital. WrenchHead.com has raised over $110 million in total VC funding since its 1999 inception, and last month acquired iCarz Inc. 

PeakStream Inc., a Redwood City, Calif.-based provider of software application platforms to the high-performance computing market, has raised $17 million in Series B funding. Foundation Capital led the deal, and was joined by return backers Sequoia Capital and Kleiner Perkins Caufield & Byers. 

Emphany Systems Inc., an East Palo Alto , Calif.-based developer of wireless sensor platform solutions, has raised $13.35 million in first-round funding, according to a regulatory filing. Backers include Sigma Partners, OVP Venture Partners, New Venture Partners and Intel Capital.

Multifamily Technology Solutions Inc. (a.k.a. MyNewPlace), a San Francisco-based Internet listing service for apartment building leasing, has raised $12 million in Series B funding. Sutter Hill Ventures and Split Rock Partners co-led the deal, and were joined by return backers like Trinity Ventures and United Dominion Realty Trust. 

Tremor Network, a New York-based online ad sales company focused on in-banner and video ads, has raised $8.4 million in first-round funding. Masthead Venture Partners and Canaan Partners co-led the deal. 

Liquid Machines Inc., a Waltham, Mass.–based provider of enterprise rights management software, has raised $7.5 million in Series C funding. Goldman Sachs led the deal, and was joined by return backers Atlas Ventures, Draper Fisher Jurvetson and Masthead Ventures. The company has raised around $27 million in total VC funding since its 2001 inception. 

Innotas Inc., an Oakland, Calif.-based provider of project portfolio management software, has raised $5.5 million in second-round funding. ArrowPath Venture Partners and ComVentures joined seed backer Cedar Circle . 

Marina Medical Billing Service Inc., a Cerritos, Calif.–based provider of revenue cycle management services for hospital emergency department physician groups, has completed a recapitalization. American Capital Strategies sponsored the deal, by providing a revolving credit facility, senior term loan, senior and junior subordinated debt and convertible preferred and common equity. No pricing terms were disclosed. 

EMC Corp. is planning to acquire Network Intelligence Inc., according to CNet. The deal could be worth up to $250 million, including an initial payment of between $170 million and $175 million. Network Intelligence is a Westwood, Mass.-based provider of software that converts enterprise data into compliance and security information. It has raised around $25 million in VC funding from firms like Ascent Venture Partners, Bain Capital Ventures, Egan Managed Capital, Castile Ventures and JMI Equity.  

The Legitimization of Online Video?

Filed under: Digital New Media, US Internet — Dave @ 12:39 am

Interesting news release today from YouTube.  This could be the “Phase II” legitimization of the site.  Phase I was building traffic; Phase II is making money and making nice…

YouTube, Warner Music To Share Revenue In Ad Deal

Video site YouTube Inc. said it signed an agreement to share revenue with Warner Music Group Corp. for online advertising that appears alongside Warner Music’s own videos and consumer-created content that incorporates its music. The agreement, to take effect before the end of the year, illustrates YouTube’s push to tackle the thorny copyright issues facing it and other sites that allow users to upload video content.

YouTube is developing an automated system to digitally identify copyrighted music and video uploaded by its users. It will then give a percentage of revenue from any ads that appear alongside those videos on YouTube’s Web site, if their owners have agreements with YouTube and opt for that rather than having the videos removed.

The closely held San Mateo, Calif., start-up said it would extend that system to other copyright owners beyond Warner Music. “Warner Music Group becomes the first media company working with us to truly embrace the power of user-generated content and allow users to use their content in legal ways, and be able to benefit by generating revenue,” said YouTube Chief Executive Chad Hurley. Hurley declined to specify further financial detail of the agreement or of YouTube’s own revenue.

Hurley said YouTube in the future would explore options for sharing online ad revenue with smaller and amateur creators of videos, but “right now we’re building tools for record labels, TV networks and movie studios.” Licensing its intellectual property for such use could be perceived as risky for Warner Music or any other copyright holder. But Alex Zubillaga, Warner’s executive vice president for digital strategy and business development, said it has become impossible to ignore outlets like YouTube. “This is a phenomenon which kids have embraced which is only going to continue to grow,” he said. “We’re much better innovating and embracing this than trying to stop it.”

The announcement comes on the heels of public comments by the chief executive of Vivendi SA’s Universal Music Group last week that included allegations YouTube violated copyright laws by hosting content uploaded without its owners’ permission. “We’ve reached out to [Universal Music] to let them know we’re willing to work with them,” said Hurley. Zubillaga said, “I do hope our announcement will cause certain of our competitors and other media companies to reflect upon the [business] model, and I hope it will encourage others to consider embracing this model.”

Earlier this year YouTube received $8 million in Series B financing from Sequoia Capital. The firm last year invested $3.5 million in a Series A round.  

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