Private Equity Week Wire for Monday 12/17

GAITHERSBURG, MD — Avalon Pharmaceuticals today announced the close to new investors of a $70 million private equity financing through the issuance of Series B Shares. This offering represents one of the largest private biotechnology financings this year. CDP Sofinov served as lead investor in this financing. Other new investors in Series B include EuclidSR Partners, AIG Global Investment Group, Hambrecht & Quist Capital Management, MDS Capital, RBC Capital Partners, GeneChem, OrbiMed Advisors LLC, and KBL Healthcare Ventures. Existing Series A investors who participated in the round included Oxford Bioscience Partners, GIMV n.v., Forward Ventures, and Emerging Technology Partners. Array Capital LLC acted as lead placement agent for the offering.

SAN FRANCISCO — DemandTec, the pioneering provider of Demand Based Management (DBM) software, today announced that the company has closed a $16.7 million round of funding. Cargill led the Series C round, with investors Crosspoint Venture Partners, Altos Ventures, and Athena Technology Ventures also participating. In conjunction with the investment, Cargill executive Jim Sayre will join the DemandTec Board of Directors.



BLUE BELL, PA — E-Duction Inc., the provider of a no-interest, payroll deduction credit card, today announced that it has received $12.3 million in funding from multiple investors, led by global payment services leader First Data Corporation. Additional investors include RRE Ventures, PA Early Stage and the Eastern Technology Fund. e-Duction will utilize the proceeds to roll out its MasterCard(R)-branded e-Duction payroll deduction, no-interest credit card, as well as to increase staffing in the company’s sales and marketing departments. e-Duction has raised approximately $26 million in three rounds of funding since its inception.

WALTHAM, MA — Polaris Venture Partners, LP, a leading venture capital firm, today named Dave Barrett, Bob Metcalfe, and Christoph Westphal as General Partners in the firm. The three new general partners are being added at a time when Polaris is continuing to actively invest in exciting information and medical technology companies.

Dave Barrett joined Polaris Venture Partners after a successful 21-year career as a senior operating executive with Lotus Development Corporation, Rational Software Corporation, and Calico during their periods of highest growth He joined the firm as a Venture Partner in May 2000. Bob Metcalfe, Ethernet inventor, founder of 3Com, and InfoWorld columnist, joined the firm as a Venture Partner in January 2001. He specializes in Boston area-based information technology start-ups. Christoph Westphal joined the firm as a Principal in June 2000. He focuses on investment opportunities in medical technology. Prior to joining Polaris, Christoph was at McKinsey & Co. working with high-growth biotech, pharmaceutical, materials science, wireless, and e-commerce companies.

MINNEAPOLIS — St. Paul Venture Capital announced today that Everett Cox, a general partner with the firm, is retiring effective January 31, 2002.
Cox joined St. Paul Venture Capital in 1992. During his career with the firm, he has focused on investments in information technology companies, with an emphasis on communications technology and enterprise software applications. Commenting on his years with the firm, Cox said: “I am proud of the work we have all done over the last decade to build St. Paul Venture Capital into a first class venture capital group and I am grateful to my partners for having given me the opportunity to contribute to our success. I will miss working with them, but I am also excited about the flexibility I now have to pursue a broader set of interests.”




UNIONDALE, NY — Safewww Inc., which provides strong two-factor authentication for secure online access, payments and transactions, today announced that it has raised $5.3 million in a Series B round of equity financing. This latest round of funding includes investments by Cablevision Systems Corporation, Archery Venture Partners, Cohen & Company LLC (also an existing investor) and other private investors.

TERADYON, ISRAEL — B.O.S. Better On-line Solutions Ltd. (NASDAQ:BOSC) announced today that its affiliate, Surf Communications Solutions Ltd. has raised capital totaling $21M, of which $2M was contributed by BOS. Aside from BOS, the other main participants in Surf’s fund raising endeavor included: Giza Venture Capital, Pitango Venture Capital, Motorola Ventures, Catalyst Investments, and Sadot Research and Development Funds.

As a result of Surf’s fundraising, BOS’ share in Surf was diluted (on a fully diluted basis) to 13.7%.

PORTLAND, OR — MyHealthBank announced today that the company has secured more than $4.5 million in a second round of financing from two of the Northwest’s top venture financing funds. With investments from SmartForest Ventures and FBR CoMotion Venture Capital, MyHealthBank will accelerate product development and marketing of its Web-based application services and administrative services that enable leading health insurers to develop self-directed health plans.


NEW YORK — Veronis Suhler has added a name
partner to the firm: Jeffrey T. Stevenson, longtime head of Veronis Suhler’s
private equity operations. Mr. Stevenson, 41, also becomes a co-CEO along with Messers. Veronis and
Suhler of the newly named Veronis Suhler Stevenson. Mr. Stevenson, who was
first named a partner in 1998, also serves on the firm’s executive committee.
He has served as a director on the boards of all 25 portfolio companies in
which VS&A Communications Partners has invested.

Mr. Stevenson’s tenure nearly matches that of his co-chief executives. He
joined Veronis Suhler in 1982 as an investment banking associate and in 1987
was named executive vice president in charge of the firm’s private equity
investment affiliate, VS&A Communications Partners, which launched Veronis
Suhler as an investor in the media and communications industries.

WALTHAM, MA — Authentica Inc., the premier provider of software for securing business intellectual property both within and beyond the corporate domain, today announced the acquisition of SHYM Technology Inc. of Needham, Massachusetts, provider of security and trust management solutions for enterprise applications. The terms of the acquisition were not disclosed.

SHYM Technology has received venture backing from such investment firms as 3i Group, Canaan Partners, Comdisco Ventures, North Bridge Venture Partners and Venrock Associates.


FORT LEE, NJ

ReefEdge Inc., the leader in products that build confidence in wirelessLANs, today announced that it has secured an additional $7 million round infinancing from Ericsson Venture Partners and Saturn Venture Partners. This announcement follows the launch and general release of the nextgeneration of ReefEdge’s flagship product, ReefEdge Connect System v2.0(release dated 12-03-01).

DUBLIN, IRELAND — Antefacto, a provider of High Availability server management systems, announces an investment of EUR 558,000 by Enterprise Ireland, the government organisation charged with assisting the development of Irish enterprise.


For Friday’s Wire, click here

This is a free sample of content available to paid subscribers of Private Equity Week.
Click here for more information.