VentureWire Alert

Message-ID: <2703400.1075851584729.JavaMail.evans@thyme> Date: Thu, 18 Oct 2001 04:56:21 -0700 (PDT) From: alert@venturewire.com To: jdasovic@enron.com Subject: VentureWire Alert, Thursday, October 18, 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: VentureWire Alert X-To: jdasovic@ENRON.COM X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst VentureWire Alert

For Jeffrey Dasovich, Enron

VENTURE
MARKET
SUMMARY

It was fairly quiet on the VC front Wednesday as ten companies reported raising approximately $59 million.
The big winner was GeneFormatics, a structural proteomics company, that raised $22 million in third-round funding
led by Perseus-Soros, which also led the company's $15 million Series B round last October. Meanwhile, education software company Carnegie Learning pulled in a $14 million second round co-led by previous investors Collier Investments and Draper Triangle Ventures. The company also announced that Robert Longo resigned as president and CEO to join Emerald Partners, a consulting firm, and that it has laid off approximately 30% of its staff.

In more promising news for the life sciences sector, JPMorgan Partners and PPD, a provider of discovery and development services and products for pharmaceutical and biotechnology companies, teamed up to form a new company called Apothogen, which will acquire, develop, and commercialize pharmaceutical products.

Webvan was also in the news again as WhyRunOut.com, an online provider of neighborhood retail and delivery services in Southern California, said it has acquired the rights to the West Coast customers of the defunct online grocery service that filed for bankruptcy last July for an undisclosed amount of cash. Undaunted by Webvan's much publicized demise, Dan Frahm, president of WhyRunOut, expects to expand to most or all of the West Coast markets for which it now has customer lists by sometime next year. The company is not hunting for new funding, but it may fundraise as it expands to the new markets. Why not? - By John Fuller

The complete text of the stories below, as well as 22 additional venture-capital and private-company stories, are available today exclusively to subscribers to our new, premium service, VentureWire Professional. Find out more.

Executive Summit
The Fairmont
San Jose, CA
November 6, 2001

Under Cynthia's leadership, Coppercom was able to secure follow-on funding of more than $65 million even in today's brutal financing climate. Cynthia has spent 20 years in high technology, playing an integral role in the management of marketing, business and corporate development, and sales for a variety of emerging companies. Prior to Coppercom, she was senior VP of corporate development and the product business units for Madge Networks, and co-founder of Red Brick Systems. And at 9.25am on Tuesday, November 6 at the Fairmont in San Jose, she joins Ken Wilcox, President and Chief Executive of Silicon Valley Bank on a panel discussing financing options and cash management strategies for private companies in these turbulent times. Register today to guarantee your place.

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Technology is still the future. Be there.

Never before have startups been hit so hard.  Although
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VENTUREWIRE INDEX

504.2 -0.04%

NOTABLE DEALS

JPMorgan Partners, PPD to Launch Pharma Firm Apothogen
NEW YORK -- JPMorgan Partners and PPD, a provider of discovery and development services and products for pharmaceutical and biotechnology companies, said they have formed a new company called Apothogen, which will acquire, develop, and commercialize pharmaceutical products. [more..]

Carnegie Learning Gets $14M Second Round, CEO Resigns
PITTSBURGH -- Carnegie Learning, a provider of educational software for math and writing, said it raised $14 million in its second round of funding. The company also announced that Robert Longo has resigned as president and CEO to join Emerald Partners, a consulting firm, and that it has laid off approximately 30% of its staff. [more..] http://www.carnegielearning.com

Facing Microsoft Foreclosure, Reciprocal Scrambles For Funds
NEW YORK -- Reciprocal, a digital rights management company, is making a last ditch effort to close on a new round of funding to avoid being taken over by Microsoft. The company, which took a $10 million bridge loan from Microsoft earlier this year, is reorganizing under a new entity to be called "Newco." [more..] http://www.reciprocal.com

Cyternex Gets $1.55M to Close Series A at $3.5M
SAN DIEGO -- Cyternex, a biotechnology company developing small molecule anticancer agents, said it has raised another $1.55 million in Series A funding to cap the round at $3.5 million. [more..] http://www.cyternex.com

Proteomics Firm GeneFormatics Gets $22M in Third Round
SAN DIEGO -- GeneFormatics, a structural proteomics company, said it raised $22 million in third-round funding. [more..] http://www.geneformatics.com

National Credit Group Raises $2M in First Round
PLAINVIEW, N.Y. -- National Credit Group, which provides business credit reporting online, said it raised $2 million in its first round financing. [more..] http://www.ncgcredit.com

Lighting the Path to Network Profitability

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Alltrue Lays Off 69%, Restructures as TV Production Company
NEW YORK -- Alltrue Networks, which operates a reality-based online video network, has decided to abandon its e-commerce Web site, Alltrue.com, and restructure its business model to focus on television production, co-founder Tim Nye told VentureWire. The company will lay off 69% of its staff. [more..] http://www.alltrue.com

WhyRunOut.com Acquires Customer Lists From Webvan
ALISO VIEJO, CALIF. -- WhyRunOut.com, an online provider of neighborhood retail and delivery services in Southern California, said it has acquired the rights to the West Coast customers of Webvan, the defunct online grocery service that filed for bankruptcy last July, in an all-cash deal. [more..] http://www.whyrunout.com

Brience
NEW YORK -- A story in Wednesday's edition incorrectly identified Jim Drumright's title at Brience as president and COO. Mr. Drumright serves solely as COO. Rod McGeary is president and CEO of Brience. [more..]

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December 3 & 4 at the San Francisco Airport Marriott

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