PORTLAND, OR — Fios, the premier provider of electronic discovery, antitrust review, and merger and acquisition due diligence services
to law firms and government agencies, announced it has raised $10.1 million in a second round of institutional funding. The international mix of investors was led by Fluke Venture
Partners (FVP) and included 3i; Banyan Capital Partners; and Velocity Capital. In addition to these new funds, existing investors included Digital Partners and FBR CoMotion Venture
CHELMSFORD, MA — Integral Access Inc., the intelligent MPLS access company, today announced that it has secured $45 million in a fourth round of financing. Integral Access will use the funds
for sales, marketing, R&D, international expansion, and customer support for the PurePacket telecommunications access platform, which uses Internet-style packet technology to
enable carriers to deliver voice and broadband video/data services over a single line. The funding was led by Technology Crossover Ventures (TCV), and supported by early round
investors including Ascent Venture Partners, Coral Ventures, Prism Venture Partners, and St. Paul Venture Capital. The company also announced today that Bill Cadogan of St. Paul
Venture Capital, and Rick Kimball of Technology Crossover Ventures, have been appointed to its Board of Directors.
MENLO PARK, CA — Matrix Partners announced today
that Shirish Sathaye has joined the firm as a general partner. The addition of Sathaye brings the Menlo Park office to four general partners.
Before Matrix, Sathaye was first the vp engineering, and then the chief technology officer at Alteon Websystems, where he led the engineering organization almost from its
inception through a highly successful IPO and subsequent acquisition by Nortel Networks (NYSE:NT). He participated in mergers and acquisitions activities at Alteon, and was
instrumental in Alteon’s acquisition of two companies.
SAN FRANCISCO — Round1, a provider of financial productivity and analysis software and services for the private capital markets, today announced two additions to its management. David J. Katz
joins the executive management team as vice president and product manager, Private Equity Street (PES), and Teresa C. Barger, Director of Private Equity and Investment Funds with
the International Finance Corp. (IFC), brings her expertise to the Round1 Board of Directors.
SAN FRANCISCO — meVC Draper Fisher Jurvetson Fund I (NYSE:
MVC), an information technology venture capital fund providing individual investors access
to venture capital investments, today announced that Benjamin Xu and Jai Das have
joined Draper Advisers as Principals.
Mr. Xu and Mr. Das will assist John Grillos, Chairman and Chief Executive Officer, and Nino
Marakovic, Partner, in making investment decisions for the meVC Draper Fisher Jurvetson
Fund I. They will be responsible for performing due diligence on future investments,
managing relationships with the 11 Draper Fisher Jurvetson affiliates and their portfolio
companies, and communicating with existing portfolio companies of the Fund.
Mr. Xu brings more than 15 years of experience in a broad range of business and
technology disciplines. Mr. Xu’s prior experience includes Exodus Communications where
he was a director of strategic planning responsible for overseeing the company’s needs in
network infrastructure and emerging technologies. Mr. Das joins Draper Advisers from Intel Capital where he was responsible for strategic
equity investments in data communication software and system vendors, as well as
managed service providers.
MENLO PARK, CA — Accel Partners and Kohlberg Kravis Roberts & Co. (KKR) announced today they have formed an additional venture to focus on telecommunications industry investments and have named Arun Sarin, former president of AirTouch and chief executive officer of InfoSpace, as chief executive officer.
The new venture, called Accel-KKR Telecom, will invest in and manage assets in the telecommunications business on a global basis using the joint human and financial resources of the two firms. Funding for specific investments will come from KKR’s existing Funds, Accel’s latest Funds, and from the Fund managed by the existing Accel-KKR partnership. Accel and KKR currently work together in applying online technology to major corporations through a venture established in 2000.
Mr. Sarin, 46, is a 17-year veteran of the telecom industry, and has managed both large and small businesses in the wireless, wireline, Internet, and international arenas. He will also join the Board of the telecom venture, along with Henry R. Kravis and George R. Roberts, who are both founding partners of KKR; James W. Breyer, managing partner of Accel; and Paul Hazen, chairman of the existing Accel-KKR partnership, deputy chairman of Vodafone, and retired chairman and chief executive officer of Wells Fargo Bank.
NEW YORK — Investors in US venture capital funds
continue to see decreases in their portfolios in the first quarter as
returns were negative for the second straight period. This mirrors the
decrease in valuations of information technology companies in both the
public and private markets. The venture industry saw its first
negative return for any 12-month period ever, according to results
announced today by Private Equity Week publisher Venture Economics and the National Venture
Capital Association (NVCA). The following data is the product of the
VE/NVCA preliminary quarterly Private Equity Performance Index (PEPI)
results for the quarter ending March 31, 2001.
Returns in venture capital investments posted a -8.9% loss for the
3 months ending 3/31/2001, marking the fifth consecutive quarterly
drop from the heights that peaked in the fourth quarter of 1999. When
combined with the revised -13.4% loss in the 4th quarter of 2000,
investors suffered a -21.1% loss for the six months ending 3/31/2001.
For the first time ever, 12-month returns for the venture industry
turned negative with a -6.7% loss for the year ending 3/31/2001.
However, it is important to note that a very large portion of the
investments reflected in the 3-month, 6-month and 1-year IRR’s are
based on money invested but not yet harvested. This means that interim
valuations play a huge role in these calculations. The smallest
12-month return previously was in the year ending 12/31/1984, with a
1.4% return, and the smallest in recent memory was in the year ending
12/31/1990, with a 1.8% return. Both years are significant in that
they also followed tremendous spurts in technology investment and in
the IPO market. When compared to the freefall in the public markets,
investors in VC funds in Q1 still fared well, as the S&P 500 returned
-12.1% and -22.6% for the quarter ending and year ending 3/31/2001,
respectively, while NASDAQ returned -25.5% and -60.8% for those same
MARLBOROUGH, MA — Avian Communications Inc., a provider of next-generation mobile networking infrastructure equipment, today
announced it has completed a $22 million round of equity financing. New investors Argo Global Capital, Nokia Venture Partners, Wasserstein Ventures, YankeeTek Ventures, and
Clarity Capital joined St. Paul Venture Capital, Avian’s first round investor. The company will use the new funding to grow aggressively to support product development through its
scheduled customer trials.
With the closing of the financing round, Tom Wooters, Vice President and Partner of Argo Global Capital, and John Malloy, Managing Partner of Nokia Venture Partners, join
Avian Communications’ Board of Directors. Vijay Rajamani, Vice President of Wasserstein Ventures joins the Board as an observer.
TORONTO — Natsource LLC announced today that it will
become a strategic partner with LEAP Energy Fund LP, a venture capital fund focused on
investing in private North American alternative energy companies.
Natsource will join LEAP’s extensive network and apply its expertise and access to its
clients around the world to advance the fund’s growth and broaden the awareness of the
fund’s portfolio companies. Natsource also will work with the principals and their portfolio
companies to identify opportunities to maximize the value of emissions credits in the
REDWOOD SHORES, CA — Scimagix Inc., the leading provider of image informatics solutions for pharmaceutical research and
discovery, today announced that it has secured $25 million in its third round of funding. Led by Dresdner Kleinwort Capital and EuclidSR Partners, this oversubscribed private
placement was also backed by previous investor Tullis-Dickerson & Co. Inc., and new investors INVESCO, Future Capital and IngleWood Ventures. Both Daniel Green, director,
Dresdner Kleinwort Capital, and Barbara Dalton, Ph.D., partner at EuclidSR Partners, will take seats on Scimagix’s board of directors.
AUSTIN, TEXAS — Newgistics Inc., the leader in the $5 billion returns management industry for catalog, Web and multi-channel retailers, today announced a $16.5 million investment by Austin
Ventures, Spiegel-Hermes General Service LLC, R.R. Donnelley & Sons Co., and AV Labs.
The investment by R.R. Donnelley and SHGS, along with original investor, USFreightways, solidifies a strategic alliance among the logistics industry leaders. The Series B round
raises the company’s total funding to date to $27.5 million.
The oversubscribed Series B investment reinforces the start-up’s dominant market position in returns management services and reverse logistics, offering the only full-service
solution for consumer product returns. Industry analysts forecast that returns management for multi-channel retailers will grow to nearly $10 billion by 2010.
NEW YORK — J.P. Morgan Chase & Co. (NYSE: JPM) today announced second quarter 2001 operating earnings per share of $0.33,
compared with $0.70 in the first quarter of 2001 and $0.89 in the second quarter of 2000. Operating income was $690 million in the 2001 second quarter compared to $1,436 million
in the first quarter of 2001 and $1,757 million one year ago.
The contribution of JPMorgan Partners to operating earnings per share was a loss of $0.31 in the second quarter compared to a $0.01 loss in the first quarter and income of $0.10 in
the second quarter of 2000. Excluding the results of JPMorgan Partners, operating earnings per share were $0.64 in the second quarter of 2001. This compares with $0.71 in the first
quarter of 2001 and $0.79 in the second quarter of 2000. Results for JPMorgan Partners were negatively affected by $1.02 billion of write-downs and write-offs, particularly from telecommunications investments in the privately held
portion of the portfolio.