Private Equity Week Wire

INDIANAPOLIS — Eli Lilly and Co. (NYSE:LLY) today announced the formation of Lilly BioVentures, a venture capital group providing financing and support to newly created biotechnology companies. Initially, the entity plans to invest $75 million in early-stage biotech companies.


DES MOINES, IOWA — Iowa Agricultural Finance Corp. (IAFC) announces the investment of $3.3 million by its tecTERRA(c) Food Capital Fund in Wildwood Harvest, Inc., a soy foods company created on August 24, 2001 by the merger of Wildwood Natural Foods (Fairfax and Santa Cruz, CA) and Midwest Harvest, Inc. (Grinnell, IA). Iowa Farm Bureau Federation will make a concurrent investment of $700,000 in Wildwood Harvest.
According to Cybus Capital, the investment manager for the tecTERRA Fund, proceeds of this investment will be used to build and equip a new 20,000 sq. ft. soy food manufacturing facility on a ten acre development site in Grinnell and to remodel and equip another 20,000 sq. ft. food manufacturing facility in Watsonville, CA, into which all California operations will be consolidated.

FREMONT, CA — Legend Silicon Corp., a developer of digital transmission technology for digital television (DTV) and broadband multimedia data casting, announced its second round of funding. SUNeVision Ventures (www.sunevisionvc.com), the venture capital group of SUNeVision Holdings (SEHK:8008), was the lead investor. Dragon Venture, Intel Capital, Savage Venture, Star Cluster Inc., and Tsinghua Tongfang (SSECHINA:600100) also participated in the financing. Legend Silicon will use the funding to extend its technology and product development in China.

TORONTO — The CPP Investment Board announced today that it will invest a further $325 million in private equity opportunities. The investments are:

– $190 million to the Canadian merchant bank Borealis Capital Corporation, consisting of $20 million to buy a 26 percent ownership interest in Borealis, plus commitments over five years of $150 million to its buyout fund and $20 million to its venture capital fund. Additional commitments may be made to Borealis infrastructure projects. – A $135 million commitment over four years to Paul Capital Partners VII, L.P., sponsored by Paul Capital Partners, a U.S. private equity firm. The new $1.2 billion fund will acquire U.S. and European limited partnership interests in the secondary markets. Other investors include U.S. and European pension funds, foundations, banks, and individuals.

SOUTH PLAINFIELD, NJ — PTC Therapeutics Inc. (PTC), a privately held biopharmaceutical company, announced today it has received $40 million to advance drug discovery efforts based on its proprietary integrated ribonucleic acid (RNA) biology and chemistry programs. CSFB Private Equity, Vulcan Ventures, and Bay City Capital led this round of financing. Other investors in this round include CDIB Biotech, Inc., China Development Industrial Bank, Delphi Ventures, HealthCap, The Manufacturers Life Insurance Company (U.S.A.), NMT New Medical Technologies, Novo A/S, and Pictet Global Sector Fund – Biotech. PTC’s shareholders also include Tularik Inc., Three Crowns Capital, and the University of Medicine and Dentistry of New Jersey (UMDNJ).

BOSTON — GetConnected, Inc., a leading provider of telecommunications commerce software and services, today announced the completion of its $5 million Series C financing round. The completion of this round brings GetConnected’s total funding to date to more than $20 million. Leading the round of institutional investors were Richmond I and Vantage Partners. Other investors included Atlas Venture (who led the company’s previous financing round in 2000) and Asset Management. The company will use the proceeds to deploy its newest product that allows retailers to offer their customers access to GetConnected’s commerce services through in-store terminals and kiosks as well as grow its existing lines of business.

SEATTLE — The Yottabyte NetStorage Co., announced today it has completed an impressive round of investments totaling $26 million with funds from key international players in storage, networking and software infrastructure.
Investors in this round include: Banc of America Securities of Palo Alto, Noble Networks of New York, Bombardier Trust UK of London, Davenport Capital Ventures of Boston, The Grosvenor Funds of Washington D.C., Optical Capital Group of Columbia, Morgan Keegan of Memphis, Desjardins of Quebec City and TechnoCap of Montreal.

MCLEAN, VA — Gladstone Capital Corp. (NASDAQ:GLAD) announced that seven officers of the Company have exercised options to purchase an aggregate of 586,670 shares of common stock at $15 per share. Each of the officers exercised their options under the Company’s 2001 Equity Incentive Plan by delivering a promissory note for the full purchase price. The total principal amount of all of the promissory notes was $8.8 million.

ENGLEWOOD CLIFFS, NJ — Worknowledge, a provider of human capital development and e-learning solutions, announced today that it received $2.5 million in Series B funding from early-stage technology and financial investors, bringing its total funding to $3.8 million to date. Aktiva Ventures, the venture capital arm of a European financial holding company, led this latest round. Other investors in the round include Sunrise Financial Group, Inc., Yamcom Holdings BV, and Seven Venture LP. Worknowledge said it will use the funds to grow its customer base and upgrade its technology platform.

CUPERTINO, CA — Pivia Inc., the first provider of dynamic application caching software and services, announced today that it has raised $11.1 million in a Series B round of funding. The round was led by Thomas Weisel Venture Partners and includes previous investors Sutter Hill Ventures, Draper Richards, Argus Capital and individual investor, Thomas Layton. David Crowder from Thomas Weisel Venture Partners will join Pivia’s Board of Directors. The Series B funding will be used to continue product development, launch the company’s products and services and enhance the Company’s sales and marketing efforts. With this new investment Pivia has now raised a total of $16.6 million.


GOTHENBURG, SWEDEN — Bure Equity AB (OMX:BURE.) acquires a 35% shareholding in Xdin AB. The company’s operations comprise software and services within the concept, product and process development sectors. Xdin will be included in Bure’s investment area IT Solutions.
Xdin is a knowledge company involved in product development, especially for the automotive industry, which has expanded strongly in recent years.


ALISO VIEJO, CA — Internet Motors Corp., a leading telematics software and services developer for the automotive industry, today announced it has raised $2 million in Series A funding from ThinkTank, a private equity and technology infrastructure company. Internet Motors is developing a portfolio of entertainment, information and commerce services for wireless delivery to vehicles.


WATERLOO, ONTARIO & PORTLAND, OR — Adexact Corp. today announced it has closed a $5.5 million round of financing led by RBC Capital Partners Technology Fund of Toronto, Ontario.
ADexact develops and markets an advanced system that allows cable and satellite operators and broadcasters to target advertising using their new digital infrastructures and iTV platforms. Operators are seeking to improve their revenues by $200 to $500 per subscriber per year and ADexact expects targeted advertising will significantly contribute to this goal.

SAN FRANCISCO — Probitas Partners today announced its formation and entry

into the

alternative investment financial services market. Founded by former CSFB

Private Fund Group executives Greg Hausler, Michael Hoffmann and Craig

Marmer,Probitas Partners will offer an array of products and services to the

global

alternative investment community, including private equity funds placement

andinvestment management.

ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI), the Internet operating and

development company, will release its Q4 and year-end fiscal 2001 financial

results Tuesday, September 25, 2001 after the market close.

SAN JOSE, CA — DragonVenture Inc. today announced a strategic

partnership with Silicon Valley Bank (Nasdaq: SIVB), a leading bank servicing

the needs of emerging growth technology and life sciences companies

nationwide, and a wholly owned subsidiary of Silicon Valley Bancshares. The

agreement calls for Silicon Valley Bank to provide specialized banking

services for startups as well as assistance to China-based companies planning

to open U.S. accounts.

HELSINKI, FINLAND — Wicom Communications Ltd. announced that it had closed

its third round of venture capital funding. Participants in the round were

Accenture Technology Ventures, 3i and Stratos Ventures.

Wicom, a leading provider of world-class communications management solutions

including contact centres, advanced enterprise telephony solutions, and

contact management applications for fixed and wireless IP (Internet Protocol)

environments received US $12 million from the three venture capital

companies.

STOCKHOLM, SWEDEN — EQT Northern Europe (“EQT”) has successfully finalised

the negotiations to acquire the Plantasjen Group, the leading Nordic garden

super-store chain. The Company’s management team will invest alongside EQT.

LONDON — A leading international venture capital firm and a major network operator have joined forces to provide second round funding for Mobile Commerce, a company that provides location-based services for people on the move. 3i Group and T-Mobile Venture Fund, a fund that is managed by T-Venture, the venture capital arm of Deutsche Telekom, have become shareholders in the company which was founded in 1999 and whose current shareholders include the business accelerator GorillaPark and Thomson Directories.

Mobile Commerce provides location-based services that are network and handset independent and can be accessed over multiple platforms (SMS, WAP, Internet, PDAs and Voice). The company is a leader in its field due to its flexible business approach and the aggregation of content from multiple sources to create a rich and compelling service for users. Clients and partners include BT Cellnet, T-Motion and Pocket This.