Message-ID: <30018699.1075852558098.JavaMail.evans@thyme> Date: Fri, 26 Oct 2001 05:01:44 -0700 (PDT) From: pro@venturewire.com To: jdasovic@enron.com Subject: VentureWire Professional, Friday, October 26, 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: VentureWire Professional X-To: jdasovic@ENRON.COM X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Deleted Items X-Origin: Shankman-J X-FileName: JSHANKM (Non-Privileged).pst VentureWire Professional SUBSCRIBE | COMPANIES | INVESTORS | REGIONS | EVENTS | ADVERTISE The Details that Make a Business Difference VentureWire Professional brings you more of the important strategic information you need. You'll find more valuations, burn rates, hiring intentions, and future financing plans in VentureWire Professional than anywhere else. Subscribe now at no risk or obligation. * Digital Island Veterans Launch Proficient Networks Proficient Networks, a provider of network management appliances that enable companies to route network traffic based on their access policies, has launched and expects to ship its first product by the end of the year, CEO Allan Leiwand told VentureWire.>> * Netegrity to Acquire DataChannel in $54 Million Deal Netegrity, a publicly traded provider of applications for securely managing e-business relationships, said it signed an agreement to acquire Bellevue, Wash.-based DataChannel, a privately held provider of enterprise portal technology in a deal worth about $54 million.>> * Switch Biotech Gets $16 Million in Round Three Switch Biotech, a developer of medications for dermatological conditions, said it received EUR 18 million ($16 million) in third-round funding.>> * Telcordia Spinout Telelogue Raising $10 Million Series B Telelogue, a spinout from Telcordia Technologies that offers software applications to enable telephone users to search databases and directories, has begun raising its Series B round, according to chief operating officer Robert Burke.>> How to Get Ready Today to Get Bought Tomorrow Mergers and acquisitions will pick up again, perhaps before IPOs do, and few know more about preparing for such an exit strategy than Matt L'Heureux, Steve Smith, and Les Vadasz. Currently advising HP on its $21 billion takeover of Compaq, Matt heads Goldman's worldwide technology M&A. Steve built Broadview's Silicon Valley business. Les, head of Intel Capital, runs one of the world's most extensive corporate development and acquisition programs. You'd be hard- pressed to find professionals better qualified to tell you how to find the right corporate partner and make the relationship work. For straight talk from the voices of authority, register today. VentureWire Executive Summit Managing the Downturn: Survival Strategies for 2002 The Fairmont, San Jose November 6, 2001 http://events.venturewire.com/summit/default.asp new money * Nitride Substrates Firm Kyma Raises $2.6M First Round * Drug Discovery Firm AmberGen Looks For First VC * Infrastructure Software Firm Systinet Launches With $2.3M * Sales Automation App Firm Selltis Lands $3M in Second Round * Database Software Firm OverX Raises $1M Bridge * GiftCertificates.com Gets $4.4M More in Fifth Round * HR Software Firm Ascentis Raises $800,000 Second Round * Mobile Device Maker RSC Beams Up $1.75 Million Series B * Vanguard Medical Gets Investment from RoundTable Healthcare * Digital Content Services Firm Simulacra Media Raises $615K * PR Platform Provider Vocus Gets $2.5M Credit Facility bad news * Document Management Firm Flywheel Communications Shuts Down new deals * Pharma Firm Elitra Enters Partnership with Merck new products * Text Analysis International Launches First Product m&a * Online Newspaper ASPs AdOne and PowerAdz Merge * Intelliseek and PlanetFeedback.com Merge new directors * Voice, Data Applications Firm Synamics Taps Two for Board new people * Original Management Team Departs at RLX * IntellectExchange Hires President and CEO; Raising Capital * Relativity Technologies Promotes Skip Yakopec to Pres, COO vw corrections * Chorum Technologies Unlocking the Promise of Good Science: The Investor's Perspective Good science doesn't always equate with good investment opportunity. Generations of investors have been burned and rewarded for taking risks on the potential of early- stage therapies. The drug discovery process is a complex combination of tests and hurdles for young companies. Where are the signposts for investors? James Reddoch of Banc of America Securities will moderate a special roundtable dedicated to drug research and discovery at this year's Healthcare Outlook Conference. The experience of the panelists reflects the complex considerations of modern research and development. Mr. Reddoch is joined by Michael Grey of Structural Genomix, Daniel Janney of Alta Partners, Gary Zweiger of Agilent Technologies and Lowell Harmison, Former Deputy Assistant Secretary for Health, Department of Health and Human Services. Healthcare Outlook, January 22, 2002 San Francisco Airport Marriott, Burlingame, CA http://www.healthcareoutlook.com * Digital Island Veterans Launch Proficient Networks By Michelle Tsai top mail SAN FRANCISCO -- Proficient Networks, a provider of network management appliances that enable companies to route network traffic based on their access policies, has launched and expects to ship its first product by the end of the year, CEO Allan Leiwand told VentureWire. The firm, which has been in stealth mode since its formation in February 2001, secured $6 million in Series A funding from Canaan Partners and El Dorado Ventures in May, Mr. Leiwand said. Proficient has used new funds for product development and shipment, and expects its staff to grow from 20 to 80 or 100 in about a year. Proficient will also seek $10 million to $20 million in Series B next year. Deepak Kamra, general partner at Canaan Partners, and Charles Beeler, general partner at El Dorado Ventures, serve as directors on the board along with Mr. Leiwand and CTO Bruce Pinsky. The company is looking to add outside directors to the board. Proficient is developing an appliance that will enable companies to manage routing policy according to business objectives. Targeted customers include Fortune 1000 financial services and high tech companies. Mr. Kamra said Canaan Partners invested in the firm because the market for network management tools continues to grow despite the economic downturn, as corporate networks and multi-home networks grow increasingly complex. Proficient Networks uses an appliance model, unlike its competitors, which employ service provider models that have proven to be capital-intensive, Mr. Kamra said. Canaan Partners, which invested $2.75 million in the Series A, will reinvest in the company's next round of funding. Proficient will begin fund-raising, targeting $10 million to $20 million in Series B funding in the first half of 2002. Messrs. Leiwand and Pinsky co-founded Proficient along with Madeline Chan and Robert Bays. This team of executives all worked at Digital Island, which went public in 1999 and was acquired by Cable & Wireless earlier this year, and Telegis Networks, a well-funded startup that went out of business earlier this year as the bottom fell out of the Web-hosting market. Prior to Proficient Networks, Mr. Leiwand served as chief technology officer for Telegis Networks and Digital Island, and as manager of consulting engineering at Cisco. Mr. Pinsky was vice president of development and network infrastructure for Telegis Networks, chief network strategist and chief information officer at Digital Island, and senior internetwork support technologist for Cisco. Ms. Chan, Proficient's vice president of strategy and marketing, was vice president of strategy and business development at Telegis Networks and director of strategy and business planning at Digital Island. Mr. Bays, chief scientist, was a senior network engineer at Telegis Networks and at Digital Island. * Netegrity to Acquire DataChannel in $54 Million Deal By Jeffrey Sanders top mail WALTHAM, MASS. -- Netegrity, a publicly traded provider of applications for securely managing e-business relationships, said it signed an agreement to acquire Bellevue, Wash.-based DataChannel, a privately held provider of enterprise portal technology in a deal worth about $54 million. Netegrity will pay with $15 million in cash and 2.5 million shares of stock worth just under $40 million. DataChannel's Bellevue office will remain open, but Netegrity expects to reduce staff at DataChannel in the future. DataChannel's current headcount is approximately 120. At least two executives from DataChannel will stay during the transition period: Lucie?J.?Fjeldstad, president and CEO, and Jim?Beach, chief financial officer and senior vice president. A DataChannel spokesperson said the company recently closed a round of funding, but would not disclose further details. The spokesperson also said that the deal includes Netegrity becoming the sole reseller of DataChannel products until the deal is finalized. At that time, Netegrity will rebrand existing DataChannel products as its own. DataChannel was backed by AT&T, Deloitte Consulting, Bain Capital, Cisco Systems, Deutsche Bank, IBM, U.S. Venture Partners, Weiss, VanW agoner, and XMLFund. * Switch Biotech Gets $16 Million in Round Three By Taran Provost top mail MARTINSRIED, GERMANY -- Switch Biotech, a developer of medications for dermatological conditions, said it received EUR 18 million ($16 million) in third-round funding. The new investors in the round were NMT New Medical Technologies, Mulligan BioCapital, and Landeskreditbank Baden-Wurttemberg-Forderbank. The company will use the funds to continue its research initiatives. Prior investors 3i Group, Strategic European Technologies, Technologieholding-Funds, DVC Deutsche Venture Capital, Beteiligungsgesellschaft fur die deutsche Wirtschaft, TBG Technologie-Beteiligungs-Gesellschaft, and individuals also contributed in the round. The company also said it is partnering with Leo Pharmaceuticals for strategic purposes. Switch Biotech raised $9.4 million in its first two rounds of financing. * Telcordia Spinout Telelogue Raising $10 Million Series B By Jeffrey Sanders top mail ISELIN, N.J. -- Telelogue, a spinout from Telcordia Technologies that offers software applications to enable telephone users to search databases and directories, has begun raising its Series B round, according to chief operating officer Robert Burke. The round, which began 30 days ago, aims to raise $10 million by mid-December, said Mr. Burke. Past lead investor Pequot Capital has committed to the round, though it will not return as the lead. The proceeds of the round will be used for working capital, including developing a sales and marketing team. Telelogue has raised $3.7 million to date. Its Series A closed in October 2000, giving the company a post-money valuation of $9.2 million. Mr. Burke said he expects the Series B to be an up round. The only other previous investor was iPoint Ventures, a firm Mr. Burke founded and recently closed. iPoint was founded to work in conjunction with Pequot-led spinouts of Hewlett-Packard (HP) and Telcordia Technologies. iPoint's only investment was $100,000 in Telelogue, though it also worked with Network Design Tools, another Telcordia spinout backed by Pequot. iPoint never announced any deals with HP. Mr. Burke said he decided close iPoint and dedicate his time to Telelogue because of the possibilities to build the company. At present, Telelogue employs 20. Mr. Burke, who joined Telelogue as vice president of development and general counsel, was recently promoted to be the company's first COO; he still oversees the responsibilities of his past positions. Telelogue's five member board of directors will be restructured as a result of the Series B round, Mr. Burke said, adding that Pequot's two seats will be reduced to one to accommodate a new investor. Richard DeMillo, chief technical officer of HP, also sits on the board. new money * Nitride Substrates Firm Kyma Raises $2.6M First Round By Jeffrey Sanders top mail RESEARCH TRIANGLE, N.C. -- Kyma Technologies, which develops and supplies nitride substrates for use in optoelectronics, communications, and microelectronics industries, has raised $2.6 million in its Series A, according to president and CEO Ed Pupa. Mr. Pupa said the round was led by a consortium of past individual investors. Other contributors included new investor Precision Ventures and return investor RM Management. All past investors returned for the round. The company will use the money for product development. The CEO would not reveal the company's valuation, but did say it increased significantly since its last round, pushing the post-money valuation past $10 million. Rick Strickland, general partner at Precision, has become the sixth member of the board as a result of the financing. Mr. Pupa said the company is not generating product revenue yet, adding that he expects the company to release its first product mid-year 2002 and to start generating revenue by summer 2002. Kyma, which employs 14, had previously raised $550,000. The company might seek Series B funds next summer. Kyma was founded in 1998 as a spinoff from North Carolina State's Department of Materials Science and Engineering. * Drug Discovery Firm AmberGen Looks For First VC By Taran Provost top mail BOSTON -- AmberGen, a drug discovery company that has been operating since 1994, said it is raising a Series A round of venture capital funding to develop its technology further. According to AmberGen COO Norman Priebatsch, the company hopes to raise between $4 million and $6 million in the round. The funds will be used to develop what it calls an integrated high-throughput system for drug screening, which incorporates engineered cell-free expressed proteins. Mr. Priebatsch said the company is in talks with VC firms but has yet to receive a term sheet. He said AmberGen is now operating with about $2 million in funds from the National Institutes of Health and the Dept. of Defense. The two organizations previously provided the company with $7 million in Small Business Innovation grants. Using its system, the company says individual proteins coded for by each gene can be expressed, detected, purified, and analyzed with considerable savings in time and money. The company says its technology can be used for screening new drug candidates against proteins for potential interactions, finding new drug candidates by screening target protein against other proteins, and for other purposes. AmberGen is generating revenue through collaborations and by providing pharmaceutical companies with custom-made proteins for drug screening purposes. It is burning through about $750,000 per year, Mr. Priebatsch said. It was founded in 1994 and has eleven employees. * Infrastructure Software Firm Systinet Launches With $2.3M By Lizbeth Scordo top mail CAMBRIDGE, MASS. -- Systinet, a provider of Web services infrastructure software, has announced its launch with $2.3 million in seed round financing. The company also said it changed its name from Idoox to Systinet. Windcrest Partners led the round with participation from 3TS Venture Partners, and individuals Robin Neustein and Esther Dyson, chairman of Edventure Holdings. Systinet said it will use the new funding for the development of its web services platform and to expand sales and marketing. The company has also opened its headquarters in Cambridge. CEO Roman Stanek, who founded Systinet in 2000, also created NetBeans Java IDE, which he sold to Sun Microsystems. * Sales Automation App Firm Selltis Lands $3M in Second Round top mail NEW ORLEANS -- Selltis, a provider of industrial sales automation software, said it raised $3 million in its second round of funding. New investor Advantage Capital Partners led the round, which included the Louisiana Economic Development Corp., a branch of the Louisiana Department of Economic Development, and previous investors Frantzen/Voelker Investments and Koerner Capital. Both Advantage Capital and a Louisiana state representative will join the five-member board of directors. CEO David Erath said the funding should carry the company for a year to 18 months and doesn't see the need for further funding. The company will use the funds to expand its sales and marketing, including adding regional sales managers, and continuing product development. This round of funding brings the company's total raised to date to $5 million. * Database Software Firm OverX Raises $1M Bridge top mail CHICAGO -- OverX, a provider of data management software, said it has raised $1.025 million in convertible debt in bridge financing. New investor Redleaf Group led the financing with $500,000, while individual investors contributed the rest, said Mike Pechette, an individual investor and president of Capital Corporation, a merchant bank. The funding will convert to equity in a Series A round of $5 million to $10 million that the company will raise in spring 2002. Charles Sum, managing partner at Redleaf, joins the board, which is full with seven directors. New money will be used for product development, marketing, and sales. The product, which recently launched, targets network storage, DNS management, and wireless infrastructure companies. OverX has raised just over $5 million in financing from Redlead Group and individuals. * GiftCertificates.com Gets $4.4M More in Fifth Round top mail SEATTLE -- GiftCertificates.com, a provider of gift certificates and related services for corporate customers and consumers, said it has raised $4.4 million in a second close of a fifth round of funding for the company, bringing the round to a close with $18.6 million in equity and $7.5 million in credit. New investor OneBeacon Insurance Group provided approximately half of the second close, according to CEO Michael Ahern. Institutional investors from prior rounds -- Greenlight Capital and Pilgrim Baxter Hybrid Partners -- contributed the other half. Post-money valuation has decreased since the last round, Mr. Ahern said. Existing investor Mellon Ventures led this round, with additional funding from Barron Private Equity, CIP Capital, Gotham Partners, SCP Private Equity, and the venture arm of insurance firm WR Berkley. Imperial Bank provided a $7.5 million line of credit. Funds will be used for marketing and inventory. The company will see significant revenue growth from last year, when GiftCertificates.com took in $65 million, said Mr. Ahern. The firm became cash flow positive in May and expects to be profitable sometime in 2002. The company employs 210. GiftCertificates.com has raised a total of $114.4 million from Barron Ventures, CIP Capital, Glencarron Investment, Gotham Partners, Greenlight Capital, Mellon Ventures, OneBeacon Insurance Group, Pilgrim Baxter & Associates, SCP Private Equity Partners, Trump Group of Florida, WR Berkley, and individuals. * HR Software Firm Ascentis Raises $800,000 Second Round top mail BELLEVUE, WASH. -- Ascentis Software, a provider of employee benefit and human resources information management software, said it received $800,000 in its on-going second round of funding. SCM, a Seattle-area investment firm, led the round, which also included individual investors. CEO Chuck D'Ambrosia said the round may raise an additional $100,000. Les Logsdon, CFO of the HDH Group, has joined the board of directors, bringing the total number of directors to six. Mr. D'Ambrosia said the company will use the funds to continue development of its product, which has been available for approximately three years. The company plans to add more features and functionality to its software. * Mobile Device Maker RSC Beams Up $1.75 Million Series B top mail STOCKHOLM, SWEDEN -- RSC Technology, a provider of mobile devices for Internet connectivity, has closed SEK 18.5 million ($1.75 million) in Series B financing, said chief financial officer Roger Orreteg. New investor Industrifonden and an undisclosed institutional investor provided the funding, which will be used for marketing and sales, Mr. Orreteg said, adding that new money will last until mid-2002. A director will be appointed to the board, for a total of four or five directors, he said. * Vanguard Medical Gets Investment from RoundTable Healthcare top mail LAKELAND, FLA. -- Vanguard Medical Concepts, a medical device reprocessor, said it received a multimillion-dollar investment from RoundTable Healthcare Partners, a private equity buyout firm focused on the health care industry. The amount of the deal was not disclosed, although Vanguard said the investment gives RoundTable a majority position in the company. Neither company returned calls for further comment. Vanguard also said it signed a non-binding letters of intent with Allegiance Healthcare and Owens & Minor, distributors of medical and surgical supplies. The partnership will enable Vanguard to offer its medical device reprocessing services to their customers. * Digital Content Services Firm Simulacra Media Raises $615K top mail LONDON -- Simulacra Media, a consultancy that provides services to assist organizations in managing and distributing digital content, said it raised GBP 430,000 ($615,000) in funding. Investors included FirstStage Capital. Simulcara said it will use the new capital to implement its strategy for growth over the next three years, invest further in its technology, and expand staff. * PR Platform Provider Vocus Gets $2.5M Credit Facility top mail LANHAM, MD. -- Vocus, a provider of a Web-based public relations automation platform for the public relations industry, said it has closed a $2.5 million revolving credit facility. VentureBank@PNC underwrote the facility, which will provide working capital to assist Vocus in pursuing its growth strategy and expanding customer base. In June the company raised a $13.4-million Series B round from Carmel Associaties, Edison Venture Fund, Lazard Technology Partners, and Sterling Venture Partners. bad news * Document Management Firm Flywheel Communications Shuts Down top mail SAN FRANCISCO -- Flywheel Communications, a provider of document management software, has shut down, a company spokesperson said. The staff of approximately 30 has been laid off and the company is in discussions with investors to salvage the company, the spokesperson said. The company launched in February and raised about $10 million in venture capital from Goldman Sachs, Hildebrandt International, VantagePoint Venture Partners, and individual investors. Flywheel targeted legal and medical customers for its software, but it became hard to sell high-end tools to companies when companies were cutting back on costs, the spokesperson said. Former Netscape Communications general counsel Roberta Katz, former SEC Commissioner Joseph Grundfest, and former general counsel for APCO Associates Jim Jones founded the company earlier this year. new deals * Pharma Firm Elitra Enters Partnership with Merck top mail SAN DIEGO -- Elitra Pharmaceuticals, an antimicrobial functional genomics company, said it entered into a research collaboration with Merck & Co. to discover and develop antibiotic compounds. The company also said Merck will provide it with an equity investment. As part of the multi-year agreement, Elitra will provide a number of proprietary antibiotic targets for screening against Merck's natural product and compound libraries. Merck will receive exclusive worldwide rights to products developed through the program. Although specific financial details of the deal were not released, Merck said it will make an upfront payment to Elitra that includes both a technology access fee and an equity investment. Merck will also fund research at Elitra to continue the development of technology targeted at identifying and characterizing biological targets for antibiotic discovery. Elitra will receive future milestone payments if any products are developed, as well as royalties on sales if any products are commercialized through the program. Elitra was founded in November 1997 and has raised $48.8 million in backing from undisclosed sources. The company has 78 employees with facilities in San Diego and Montreal. new products * Text Analysis International Launches First Product top mail SUNNYVALE, CALIF. -- Text Analysis International, a developer of software and services for text analysis, said it has launched its first product, Visual Text. VisualText enables text analyzers to extract accurate information, categorize, and summarize text, and can be integrated with broader software applications such as ones focused on e-mail, knowledge management, and eCRM. The company is backed by $1.4 million from individual investors. Text Analysis was founded by CTO Amnon Meyers, who was a senior engineer at TRW's aerospace division, and CEO Avi Meyers, co-founder of TAI. m&a * Online Newspaper ASPs AdOne and PowerAdz Merge By Lizbeth Scordo top mail NEW YORK -- AdOne and PowerAdz, which provide applications to newspapers for online publishing and classified advertising, said they have merged through a stock deal expected to close within the next two weeks. Brendan Burns, founder and CEO of AdOne, and Mark Chudzicki, founder, president, and CEO Troy, N.Y.-based PowerAdz will become co-CEOs of the new company that will announce its new name soon. Mr. Burns said the merger was a true, 50/50 split. The combined company, with 135 employees, will most likely reduce overlapping staff sometime in the future, he said. The new company has no immediate plans for funding, but does expect to make some acquisitions and reach profitability by third quarter of next year, according to Mr. Burns. Most operations will now be combined into the Troy office, but the company will also keep some staff in its Manhattan office, mainly in sales and business development. AdOne has received funding from Advance Publications, Belo, Donrey Media Group, E.W. Scripps Company, Hearst Corporation, Journal Registry Company, Lee Enterprises, Media General, Media News Group, Morris Communications, and Pulitzer. PowerAdz.com is backed by Advantage Capital Partners, Exponential Business Development, First Albany Enterprise Funding, Hudson Venture Partners, Journal Register, TS Capital, Waller-Sutton Media Partners, and individual investors. * Intelliseek and PlanetFeedback.com Merge top mail CINCINNATI -- Intelliseek, a developer of agent-based Internet search technologies, and PlanetFeedback.com, a online consumer feedback site, said they have merged. Terms of the all-stock deal, expected to close within the month, were not disclosed. Intelliseek will now be the parent company of two branded divisions with dedicated products, sales, and marketing teams. The PlanetFeedback division will provide business products to help companies set up Web-enabled feedback and analyze consumer opinions and attitudes in real time, while the Intelliseek ESS division will provide enterprise search services. Mahendra Vora, founder of Intelliseek, will serve as the chairman of the board and CEO of the combined company and both of its divisions, while Pete Blackshaw, CEO of PlanetFeedback, will become co-chairman and chief marketing officer of the new company. The Intelliseek heaquarters and PlanetFeedback division will be based in Cincinnati while the Intelliseek ESS division will be based in Sharonville, Ohio. PlanetFeedback has received funding from Blue Chip Venture Company, Flatiron Partners, and General Atlantic Partners. Intelliseek's backers include Chrysalis Ventures, Ford MotorsIn-Q-Tel, Nokia Venture Partners, River Cities Capital Funds, and individuals. new directors * Voice, Data Applications Firm Synamics Taps Two for Board top mail BOSTON -- Synamics, a provider of integrated voice and data applications delivered over circuit and packet networks, said it added Cas Skrzypczak and Jeff Siegel to its board of directors. Mr. Skrzypczak is a general partner at Global Asset Capital and serves on the boards of International Engineering Consortium and Battery Ventures. Mr. Siegel is president and CEO of AG Communications Systems, a provider of telecommunication products and services. Mr. Skrzypczak and Mr. Siegel join outside directors Mike Jablo of Arch Venture Partners and Peter Seeligsohn of VenGrowth Funds as well as CFO Charles Plant and CEO Lois Andreasen. Synamics raised $12 million in August 2000 from Arch Venture Partners and VenGrowth. new people * Original Management Team Departs at RLX top mail HOUSTON, TEXAS -- Most of the original management team has left RLX Technologies, a supplier of Web servers founded earlier this year by ex-Compaq computer executives. Earlier this week VentureWire reported that Michael Swavely, formerly president and chief operating officer, had left the company last week, and that Gary Stimac, chairman and CEO, will step down from the CEO position. Company spokesperson Patrick Kimball confirmed that there have been additional executive departures. Among those leaving were chief financial officer, J Tempesta; vice president of development, Keith McAuliffe; vice president of systems engineering, Ronnie Ward; and vice president of business development, Bob Jackson. The company said it will seek replacements. A spokesperson said that the executives chose to leave the firm as RLX underwent restructuring. In August, the company laid off 17% of its staff, or 20 employees, citing a slow market for IT products. RLX Technologies has raised $59 million in financing from ComVentures, IBM, Ignition, Soros Private Equity Partners, and Sternhill Partners. * IntellectExchange Hires President and CEO; Raising Capital top mail BEDFORD, MASS. -- IntellectExchange, which assists companies in finding experts to solve business, technology, and research problems, said it appointed Jonathan Rubin as its first president and CEO. The new executive told VentureWire that the company is raising its last stage of seed financing. Mr. Rubin, 42, joins the company from E-Sync, where he was CEO. He was introduced to IntellectExchange through technology executive search firm the Onstott Group, based in Wellesley, Mass. He has also been named to the company's three-member board. The CEO said that the company is raising its final piece of seed funding for $1.5 million. He expects to close the round by the end of the year. The company has raised $2.5 million from individual investors to date. The money will be used for sales and marketing and product development. The company could go after its Series A as early as the second quarter of 2002, he said. Mr. Rubin said the company is in the early stages of talking to two different companies about acquiring them. Both companies approached IntellectExchange, he said, adding, that if the deals were to be done, they would be in the form of cash and stock. * Relativity Technologies Promotes Skip Yakopec to Pres, COO top mail RESEARCH TRIANGLE PARK, N.C. -- Relativity Technologies, which develops software for integrating legacy systems with new technology and Internet applications, said it promoted Skip Yakopec to president and chief operating officer. Mr. Yakopec, 46, joined the company in January 2001 as vice president and general manager of the Americas and was named COO in August. No one has held the position of president prior to Mr. Yakopec's appointment. Mr. Yakopec does not hold a board seat as of yet. Relativity Technologies has raised $12 million to date from Intel, Nichimen America, NIIT, Noro-Moseley Partners, and Wakefield Group, and expects to be profitable within 90 to 100 days. vw corrections * Chorum Technologies top mail NEW YORK -- An item in yesterday's Venture Wire covering a round of funding for Chorum Technologies incorrectly listed Scudder-Kemper Investments as a lead investor. Scudder, a previous investor, did participate, however CenterPoint Ventures, InterWest Partners, and Sevin Rosen Funds led the round. Pervasive Computing Outlook As we enter the era of digital anything, companies are vying to capitalize on the market growth created by increasingly portable and ubiquitous computing power. The uneven economy has not deterred the focus on new technologies, or the related products and services that are quickly emerging. Atheros, Embrace, Phototablet, and XDegrees are just a handful of the companies that will share their plans to use real-time, wireless communication to create more intelligent, connected business opportunities. Meet the companies, investors, and executives best positioned to spearhead the pervasive vision. Register now and SAVE $300. Pervasive Computing Outlook December 4 & 5, 2001 San Francisco Airport Marriott http://www.pervasivecomputingoutlook.com/register.asp To change or update your subscription: Send other questions to prohelp@venturewire.com Friday, October 26, 2001 published daily by Technologic Partners this issue delivered to: Jeffrey Dasovich Enron If you're not Jeffrey Dasovich, please see section 3 of our terms of service . search find in all stories new money bad news new products M&A new directors new people vc fund news vc personnel over past week past two weeks past month past quarter past six months advanced search search help venture monitor 10/26/2001 deals $mill. change today 9 $30 -65% week ago 18 $135 past week 75 $631 -10% pvs. week 71 $745 past month 293 $2,728 1% pvs. month 286 $2,966 past qtr. 913 $8,668 -68% yr. ago qtr. 1,924 $27,418 yr. to date 3,601 $39,835 -58% 2000 to date 6,394 $93,934 VentureWire index VentureWire Index VentureWire Index 493.6 -0.30% industry news ? B2B eCommerce ? B2C eCommerce ? Enterprise Software ? Internet Services ? Networking Hardware ? Optical Networking ? Semiconductors ? Telecom Services ? Venture Capital ? Wireless Services ? Biotechnology ? eHealth company index companies mentioned in this issue ? AdOne Classified Network ? AmberGen ? Ascentis Software ? DataChannel ? Elitra Pharmaceuticals ? Flywheel Communications ? GiftCertificates.com ? IntellectExchange ? Intelliseek ? Kyma Technologies ? Merck ? Netegrity ? OverX ? PlanetFeedback.com ? PowerAdz.com ? Proficient Networks ? Relativity Technologies ? RLX Technologies ? RSC Technology ? Selltis ? Simulacra Media ? Switch Biotech ? Synamics ? Systinet ? Telelogue ? Text Analysis International ? Vanguard Medical Concepts ? Vocus investor index investors participating in new rounds in this issue ? 3i Group ? 3TS Venture Partners ? Advantage Capital Partners ? Deutsche Venture Capital ? FirstStage Capital ? Frantzen/Voelker Investments ? Industrifonden ? Koerner Capital ? Landeskreditbank Baden-Wurttemberg-Forderbank ? Louisiana Economic Development Corp. ? Mulligan BioCapital ? NMT New Medical Technologies ? OneBeacon Insurance Group ? RoundTable Healthcare Partners ? SCM ? Strategic European Technologies ? tbg Technologie-Beteiligungs-Gesellschaft ? Technologieholding ? Windcrest Partners your account ? Change your e-mail address ? Thoughts, suggestions, commentary ? This newsletter was mailed to you at: jdasovic@ENRON.COM contact Send news items to editor@venturewire.com Send questions, complaints, or service queries to prohelp@venturewire.com Send advertising inquiries to advertise@venturewire.com legal This copy of VentureWire Professional and the information within it may not be reproduced, saved, or otherwise copied into a database without the prior written consent of Technologic Partners. VentureWire Professional is a service mark of Technologic Partners ?2001 Technologic Partners All Rights Reserved