Private Equity Week Wire for Monday 11/5

SAN FRANCISCO — Telephia, Inc., the leading provider of market intelligence for the wireless industry, today announced that it has secured $38 million in fourth-round funding led by AEA Investors. Centennial Ventures and existing investors also participated in the round.

Telephia will use the new capital primarily to extend its offering of wireless voice-based solutions for carriers, including an expansion into new markets of its unique and proprietary market share, churn and gross additions tracking products. As well, it has planned an aggressive market roll out of its recently launched wireless data monitoring services. Telephia will enlarge the support organization for its growing client roster, maintaining its status as the standard in providing essential intelligence to the wireless industry.

SAN FRANCISCO — Bang Networks, the leading provider of network services that enable businesses to run real-time, enterprise-class applications over the public Internet, today announced that it has closed a $14 million Series B funding round. Investors include Sequoia Capital, which led Series A funding and whose general partner Mark Kvamme is on Bang Networks’ Board of Directors, and Atlas Venture, whose investment principal Jay Shiveley joins the Board. Bang Networks has raised over $32 million in capital to date.


White Williams Private Equity Partners announced today the launch of the $250 million European Accession Fund for private equity investment in Eastern and Central Europe. Dave Williams, former Alliance Capital Chairman and Chief Executive Officer and current Chairman Emeritus, and Reba White Williams, a former Director at Alliance, head the firm. The European Accession Fund adheres to the theory, based on past experience, that countries entering the European Union experience substantial economic growth and a greatly improved investment environment, as demonstrated by previous entrants, such as Spain and Greece. The European Accession Fund will invest in the next wave of countries joining the EU, including Poland, the Czech and Slovak Republics, Slovenia, Hungary and certain Baltic states. It will invest $5 million to $20 million in target companies and, in return, will acquire majority interest and participate in management.

FREMONT, CA — Zambeel Inc., an enterprise-class data management and storage company, today announced it has received $52.6 million in second-round financing. Amerindo Investment Advisors and Aurora Technology Funds jointly led this round, which includes investments by Armada Venture Group, Integral Capital Partners, Juniper Networks, Merrill Lynch, Mitsui, Morgan Keegan and Sands Brothers. Kleiner Perkins Caufield & Byers and New Enterprise Associates, the two venture capital companies that participated in the first funding round for Zambeel, Inc., also participated in this round. This second-round funding brings the company’s total funding to more than $65 million.

NEW YORKThe Financial Times is reporting today that GE Equity, the private equity arm of GE Capital, is laying off one-third of its investment staff and shutting down its San Francisco office. The report comes less than a week after another major private equity player, 3i, announced major layoffs within its European operations.

REDWOOD SHORES, CA — Woodside Fund has led a $9 million investment round in Intalio, a trailblazing enterprise software vendor developing the first standards-based Business Process Management System. 3i Technology Ventures and prior investors, XML Fund, Dassault Development, and Sippl MacDonald Ventures join Woodside Fund in this round.

MERRIMACK, NH — Ellacoya Networks, a developer of carrier-class, IP-based broadband service platforms for delivering premium Internet services, today announced it has closed on a $25 million third round of venture funding, bringing total cumulative investment to more than $111 million. The $25 million investment was provided by funds affiliated with Bessemer Venture Partners, Centennial Ventures, The Goldman Sachs Group, Inc., and Lightspeed Venture Partners. The latest funding provides for new product development and marketing/sales support for commercialization of the Ellacoya Networks product line in North America, Asia and Europe.

MONTREAL — Newtrade Technologies Inc., the travel commerce machinery company, announced today that it has secured a second round of $4 million Cdn financing led, once again, by Canadian venture capital firms Investissement Desjardins and Innovatech du Grand Montreal. The funds will accelerate Newtrade’s strategy to further develop its technology, achieve high growth and expand the market for its online travel technology solutions. The second round of financing was at an increased valuation over the first round which raised $3 million last October. “In today’s difficult economic climate, we are pleased that the initial investors participated fully in this follow-on round. We have demonstrated our ability to attract large industry players and the strength of our solution to provide unprecedented control over supply and distribution networks for the travel, tourism and hospitality industry,” stated Benoit Jolin, President and CEO, Newtrade.

SAN FRANCISCO — Blueprint Ventures, a leading next-generation venture capital firm, announced today the addition of two senior partners to expand the firm’s investments and expertise in communications.
Both partners bring extensive experience in operating and financing venture-backed communications start-ups. Cynthia Ringo, former CEO of CopperCom, joins Blueprint Ventures as general partner. Ann Zeichner, a serial entrepreneur and most recently the founding vice president of sales and marketing at NorthPoint Communications, joins the firm as venture partner.

BELLEVUE, WA — ShareBuilder Securities Corp., a leader in dollar-based online investing and provider of e-finance solutions, today announced it has closed $20 million of financing in its Series D Preferred Stock round to support the continued growth of the company and its increasing customer base.
The financing was led by Madrona Venture Group and included investments from SAFECO Corp. (Nasdaq:SAFC), Wells Fargo (NYSE:WFC), Guide Ventures, Benaroya Capital and several other investors. The company also today announced that it surpassed 300,000 ShareBuilder accounts during the month of September and that it continues to be the fastest growing online brokerage in the U.S.

LITTLETON, CO — EchoStar Communications Corp. (Nasdaq:DISH) announced today that Credit Suisse First Boston has joined Deutsche Bank to provide approximately $5.5 billion to finance the company’s announced merger with Hughes Electronics (NYSE: GM, GMH).
Credit Suisse First Boston’s $2.75 billion commitment replaces General Motors’ temporary bridge financing and adds to the previously announced $2.75 billion bridge commitment from Deutsche Bank to provide EchoStar with the total expected $5.5 billion of financing necessary to consummate the merger.

SAN MATEO, CA — Battery Ventures, a leading venture capital firm focused on technology investments, today announced that former Credit Suisse First Boston executive, Stephen Terry, joined the firm as a Venture Partner. Terry will serve as a liaison between the private capital market industry and Battery’s portfolio companies that are seeking additional rounds of funding. As an Investment Banking Director at Credit Suisse First Boston’s Technology Group, Terry was responsible for managing the Communications Software practice consisting of seven investment banking professionals and a research team. Previously, he was with Robertson Stephens & Co., most recently as an Investment Banking Vice President. During his tenure at Robertson, Terry was a member of the Convertible Securities practice, responsible for the Company’s convertible securities origination-new issues and restructurings, and the Information Services practice where he managed all aspects of new business development, client management and deal execution.

— PostX, a leading provider of secure, personalized electronic communications software and services to large organizations, today announced that it has secured $11 million in new private-equity financing. This brings the total equity investment in PostX to approximately $42 million since its inception in 1996.

The current round of financing was led by Mayfield and included participation by The Charles Schwab Corporation, Alloy Ventures, Sunrise Capital and several private investors.