VentureWire Alert

Coming out of the Labor Day weekend, thirteen companies reported $70.8 million in equity funding and $20 million in debt. Arcot Systems, maker of user authentication products, reported a $20 million Series E round led by new investor Goldman Sachs, while Elata, a software spinout of technology distribution firm Hugh Symons Group, raised a $9.1 million Series A round led by Royal Bank Ventures.

If the bad news was on holiday, it returned with the work week. Despite raising a whopping $103 million from the likes of Crosspoint and Warburg Pincus, ASP services provider AristaSoft will be shutting down. Onix Microsystems cut 40 people, about 25% of its staff, in response to the lack of a market for its 3D switches. Shakeups can hit VCs too. Commerce One Ventures, the VC unit of e-commerce services firm Commerce One, has been folded into the company's corporate development office and Jeff Smith, the vice president and general manager in charge of Commerce One Ventures, has left the company.

Seven M&A deals made the news including publicly traded Internet sports firm SportsLine.com's agreement to acquire Sandbox.com. Microdyne Outsourcing, a subsidiary of public company L-3, has acquired the assets of Envisionet Computer Services, in a $10.7 million deal.
- Lizbeth Scordo

Here they come again!-Mike Homer, Steve Kirsch, Frank Moss-back in the startup trenches. And back at our conferences. Mike, Steve, and Frank have pitched their companies at our previous Outlook conferences, and they're all returning in new roles at this year's Internet Outlook. Mike, formerly of Apple, Netscape, and GO, and a board member at Palm and Tivo, has just launched Kontiki, which aims to make the Web faster for all of us. Steve, founder of Infoseek and Frame Technology, is now at the helm of Propel, the scalable data management software provider. Frank, who helped steer Tivoli Systems for six years, has co-founded Bowstreet, which strives to make it easier to do business online. And they are only three of 97 carefully selected entrepreneurs scheduled to present at Internet Outlook on September 10 & 11 at the San Francisco Airport Marriott. Register today at: http://www.internetoutlook.net

Saving Costs via Optics With capital scarce and bandwidth aplenty, optical components manufacturers face tough market conditions. Now, systems companies are focusing on reducing costs and helping carriers do more with the capacity they already have. Happily, a number of optical technology companies appear well positioned to capitalize on this trend. At Optical Portfolio, you'll hear from startups such as Symmorphix, Telephotonics, Pine Photonics, and Proximion Fiber Optics, which are using integration, tunability, and real-time network monitoring to create more intelligent and efficient optical networks. VentureWire Optical Portfolio, Boston Marriott Cambridge, October 24 & 25. Register by September 14 and SAVE $200:
http://www.opticalportfolio.com

When Corporate and Venture Worlds Collide VentureWire Breakfast Briefing - San Mateo, CA, Sept. 19 Innovative companies such as Eastman Chemical have led the charge in using venturing to spur corporate transformation and create long-term value. Learn how corporate and private VCs can work together to create profitable, sustainable investment strategies. What are some examples of corporations and VCs working together to build companies? How can you balance strategic vs. financial value? How can you prove value despite sagging returns? Mark Klopp, managing director, Eastman Ventures, Eastman Chemical Co. shares his thoughts on aligning investment strategies to drive innovation and generate returns. http://events.venturewire.com/briefingEvent.asp