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Private Equity Week Wire for Monday 10/29

ARLINGTON, VA — InfoCruiser, a software company that delivers better alternatives for scaling the performance of back-end systems, announced today that it has closed a Series B round of financing totaling $10.2 million to fund further product development and expansion of operations.
Carlyle Venture Partners II, an affiliate of the Carlyle Group, the world’s largest independent private equity firm, led the Series B financing. Other investors included previous investors FBR Venture Capital Management Inc., as well as DynaFund Venture Partners, Draper Richards, Argus Capital, Avatar Capital, Venturehouse Group, Charles Ross Capital Partners and certain individual investors.

NEW YORK & RICHMOND, VA — In a follow-on to its recently-secured second round of institutional financing, Financeware, Inc., a Richmond-based provider of probability analysis technology and marketing strategies for financial advisors and institutions, announced today an investment from Thomson Financial Ventures, bringing the total value of the company’s financing round to nine million dollars.

Thomson Financial Ventures is a division of Thomson Financial, the parent company of Venture Economics
The investment by Thomson Financial includes a development and marketing agreement with the company that integrates Financeware’s Monte Carlo simulation technology into a new institutional technology platform–called Thomson Advisor–that supports financial advisors.

MONTREAL — Simpler Networks, the Montreal-based telecommunications equipment manufacturer specializing in Automated Distribution Frames (ADF) enabling Copper Loop Management, announced today it has completed its second round of financing totaling US $25 million in the form of new funds and notes converted into equity.
Investors from this round include: ADC, the Solidarity QFL Fund, Innovatech Grand Montreal and a private American telecommunications company. Three of these four companies were part of Simpler Networks’ initial round of financing in April 1999.

AUSTIN, TEXAS — -AV Labs, the accelerator venture fund based in Austin, Texas, announced today that Mike Bennett has joined the firm as a Master Entrepreneur. The Master Entrepreneur program is unique to AV Labs, providing portfolio companies with access to world-class experienced entrepreneurs.

Mike Bennett has been active with several of the Lab’s portfolio companies, serving on the boards of Covasoft, Lane 15 and IT Newco. Previously he was chairman, CEO and president of Mission Critical Software, an Austin Ventures portfolio company that successfully completed a public offering in 1999 and merged with NetIQ Corporation in 2000. After the merger, Bennett served as executive chairman of Net IQ Corporation. Both companies provide eBusiness infrastructure software for the WindowsNT and Windows2000 market. Bennett has also previously been CEO and president of Learmonth & Burchett Management Systems and Summagraphics.

MOUNTAIN VIEW, CA — Caw Networks, the authority in real-world capacity assessment, today announced that it has raised $16 million in its Series B funding round. The new capital will fund further development of its leading edge technology in layer 4-7 real-world capacity assessment, sales expansion and allow new market segment development. Closure of the round brings the total investment in the company since its formation in November 1999 to a total of $25 million. The Series B funding, led by Spirent Communications, a wholly owned business group of Spirent plc. (NYSE:SPM), also included returning investor Menlo Ventures (which led the Series A funding), XML Fund, as well as the original angel investors. Gil Cabral, president of the SmartBits Division of Spirent Communications, will gain a seat on Caw Networks’ board.

— Apax Partners Inc. has hired Steven St. Peter, M.D. as a Principal.
Dr. St. Peter was formerly a Senior Associate with The Carlyle Group, where he focused on both health care buyouts and venture investing. Prior to this, he was a Clinician Educator Fellow in the Division of General Internal Medicine at the Hospital of the University of Pennsylvania.

DALLAS, TEXAS — Fuegotech(tm), a global leader in providing process-driven enterprise software solutions, today announced it has secured $22.3 million in Series C venture capital funding bringing the company’s total investment capital to $45 million. Trinity Ventures, based in Menlo Park, Calif., led this round with a $10 million investment. Previous investors including Sevin Rosen Funds, Stephens Group, SSM Ventures, and Star Ventures also participated in this round. Fuegotech provides a unique, integrated enterprise software solution that uses a process-driven approach to orchestrate and integrate internal and external business services while reducing the complexity inherent within competing EAI and B2Bi solutions of discovering, creating and evolving them.

KANATA, ONTARIO — Taral Networks, a provider of service-infrastructure technology for current and next-generation wireless networks, announced that it has closed US $5 million in Series B funding from U.S. venture capital investors. Led by Kodiak Venture Partners of Concord, Massachusetts, the investment syndicate includes Markpoint Venture Partners, of Dallas, Texas and Aether Partners of Dallas, Texas. The investment will be used to accelerate the development and deployment of Taral Networks’ data-enabling wireless infrastructure platform, and enable the company to scale its business development and engineering efforts to expand customer acceptance.

PLANO, TEXAS — Cyneta Networks, a developer of hardware and software for wireless data networks, today announced that it has secured $25 million in second round financing by leading venture capital firms. The round was led by Battery Ventures and included Partech International, Crescendo Ventures and Vortex Partners, LP. Battery Ventures’ general partner Michael Darby and senior associate Marc Woodward will be joining Cyneta’s board of directors.

IRVINE, CA — Asita Technologies, a global technology leader in information security for the Internet, today announced that it has closed a $24 million Series B round of funding. The round was led by SOFTBANK Europe Ventures and co-led by ETF Group. David Sola and Karim Abouzahr from SOFTBANK Europe Ventures and Olav Ostin from ETF Group will be joining the Board. Other participants in the financing round included Digital Networks and existing investor Bamboo Investments PLC.

TEL AVIV, ISRAEL — Siliquent Technologies, a developer of innovative technology for the storage network applications industry, announced today that it has raised $10 million investment from Benchmark Capital and Greylock.

Siliquent Technologies was founded in October 2000 by Amit Oren and Dan Arazi, previously senior executives of Orckit Communications (Nasdaq: ORCT). Siliquent’s breakthrough proprietary technology will enable the industry, both traditional vendors and emerging companies, to have access to processors that will change the storage network applications structure and performance, with a considerable price-performance improvement.

SANTA CLARA, CA — Interwise, a provider of real-time enterprise communications solutions, today announced it closed $34 million in third-round private-equity financing. Interwise will use the new capital to expand worldwide sales and marketing operations, and fund continued research and development of its enterprise communications platform for live and on-demand collaboration, communications, and eLearning.

Lead investors for this round of financing are Accenture Technology Ventures in both New York and London, Lazard Technology Partners in New York and UBS Capital in London. Additional investors include GIMV in Antwerp, Belgium, Leeds Equity Partners in New York, and Jim Manzi, former chairman, president and CEO of Lotus Development Corp., who will become non-executive chairman of the Interwise Board of Directors (see “Interwise Appoints Jim Manzi as Non-Executive Chairman and Welcomes John Landry to Board of Directors,” Oct. 29, 2001). Renewed backing from previous investors UBS Capital, Leeds Equity Partners and Jim Manzi underscores Interwise’s technological expertise and market opportunity.

BEDMINSTER, NJ — Flarion Technologies, the inventor of a breakthrough air interface technology for Internet Protocol (IP)-based mobile broadband networks, today announced it has received $45 Million in Series B equity financing from Cisco Systems, Nassau Capital and lead investor, Pequot Capital.
Also participating in this round were Series A investors Bessemer Venture Partners, Charles River Ventures, and Lucent Technologies’ New Ventures Group.

ALLENTOWN, PA — Circadiant Systems Inc., an optical networking testing equipment company, today announced it has secured an investment from Intel Capital. The new capital will help the company accelerate the growth and deployment of its products and services. Circadiant announced on September 10 that it received $10 million in second-round financing.

DALLAS — Fuegotech, a global leader in providing process-driven enterprise software solutions, today announced it has secured $22.3 million in Series C venture capital funding bringing the company’s total investment capital to $45 million.
Trinity Ventures, based in Menlo Park, Calif., led this round with a $10 million investment. Previous investors including Sevin Rosen Funds, Stephens Group, SSM Ventures, and Star Ventures also participated in this round.

BALTIMORE — New Enterprise Associates (NEA) today announced that it has invested $20 million in Essential Therapeutics (Nasdaq: ETRX). Prospect Venture Partners and Schroder Ventures joined NEA for a total investment of $60 million in private equity. Essential Therapeutics was formed recently following the merger of Microcide Pharmaceuticals and Althexis Company. Mark Skaletsky will be Chairman and CEO of Essential Therapeutics.

Essential Therapeutics, with offices in Mountain View California and Waltham Massachusetts, is committed to the discovery, development and commercialization of new classes of pharmaceutical products. Essential Therapeutics’ powerful target validation and drug discovery programs comprise a broad-based platform, including the Company’s proprietary VALID Microbial Genomics technologies and its target validation system, known as ACTT. The Company’s novel approach to structure-based drug design (SBDD) and related technologies guides the optimization of drug candidates prior to entry into more advanced preclinical testing and preparation for clinical testing.

BALTIMORE — The newly formed Baltimore Venture Mentors today announced that it will begin accepting applications for its pro bono mentoring program.
Designed to help entrepreneurs through both challenging and healthy economic markets, the organization will help coach companies in implementing their ideas into solid and viable business models.
Baltimore Venture Mentors’ (BVM) mission is to coach early stage technology companies with an emphasis on polishing funding presentations and assisting with strategic positioning. All work is done on a pro bono basis at meetings held on the third Wednesday of every month.

At each meeting, two companies will present for half an hour followed by a 30-minute critique and discussion with the BVM team. Within one week of the meeting, the companies will receive a written summation of the team’s feedback and counsel. For ongoing guidance, each company will have the opportunity to maintain contact with the team members in a confidential fashion.
Before being invited to participate in the monthly meeting, companies must submit a one page executive summary of their business plan and receive a preliminary review by a mentor partner.