Private Equity Week Wire for Monday 8/20

PLANO, TEXAS — Santera Systems Inc., a leading provider of next-generation switching solutions for the global communications market, today announced that it has secured more than $110 million in its third round of funding. Led by Redpoint Ventures, this is one of the largest amounts raised by a private company in 2001. The company has now raised approximately $200 million to date.

Santera will use the funds to further accelerate major carrier initiatives and to expand their international capabilities. The company will continue to grow its extensive customer and supplier support systems while maintaining a strong focus on product development. Equity investors in this third round include Redpoint Ventures, Austin Ventures, Institutional Venture Partners and Sequoia Capital. International and domestic service providers, as well as financial partners participated as strategic investors.

SAN JOSE, CA — Salira Optical Network Systems Inc., the first company to provide carrier-class, IP/Ethernet systems for broadband access, today announced the closing of $17 million in Series B funding. Softbank Venture Capital (SBVC) led the round; Series A lead investor Vertex Management and Pacific Rim venture capital firm WI Harper also participated in the round. The completion of this second round of funding brings the total investment in Salira to $23.9 million.

MINNEAPOLIS — Aravox Technologies Inc., the first company to offer a network services platform that enables secure, real-time communications for carriers, access providers, and managed service providers deploying voice over IP networks, today announced $14M in Series B funding, bringing the total amount of funding to $16.5M.
Global Crossing Ventures, Inc., the venture capital arm of Global Crossing Ltd. (NYSE: GX), led the round. Also participating were SAIC Venture Capital Corporation and St. Paul Venture Capital. SAIC VCC is the venture arm of Science Applications International Corp. St. Paul, one of the largest early-stage venture capital firms in the United States, also led Aravox’s first-round funding in December 1999.

NEW YORK — For the first time since January 2001, a cross section of Silicon Valley and East Coast venture capitalists expects the technology investing climate to stabilize and lead to more investment activity, according to a recent venture capital (VC) survey done by Deloitte & Touche LLP, one of the nation’s leading professional services firms.

The Silicon Valley and East Coast Venture Capital Confidence Survey, asked over 2,000 venture capital executives managing funds with assets in excess of $50 million to forecast venture capital funding trends for the next six months.

“According to the survey, VCs have adjusted their models and appear to be adopting a more traditional, disciplined approach to their investing and portfolio management. Nearly 90% of the survey respondents believe that now is a good time to be investing in the technology sector,” noted Graham Watson, a managing director within the West Coast Corporate Finance Services of Deloitte & Touche.

Offsetting some of the respondents’ optimism is the expectation of 72% of the respondents that “down rounds” will continue and that the valuations applied to follow on rounds are likely to decline over the next six months, accompanied by a continued high mortality rate among troubled venture-backed companies. VCs themselves do not expect to emerge unscathed: Seventy-eight percent of the respondents expect 10-33% of current VC firms to fail.

NEW YORK — SoundView Technology Group, Inc., formerly known as Wit SoundView Group, Inc., today announced that it will begin trading on the Nasdaq National Market under the new ticker symbol “SNDV,” effective immediately.
SoundView Technology’s new name and ticker, first announced July 24, 2000, more closely align the firm’s branding with its core competencies in technology research, banking, and sales and trading.

MOUNTAIN VIEW, CA — Acta Technology Inc., provider of the first real-time data integration platform that provides enterprise data for analytic, supply chain management, eCommerce and customer relationship management uses, today announced the addition of Hazem Ben-Gacem of Investcorp and Jim Lussier of Norwest Ventures to the company’s Board of Directors, expanding it to seven members.

TOWSON, MD — 4GL School Solutions, Inc., the leading provider of comprehensive Special Education management software and services, today announced it has closed $5.65 million in Series A investment from venture firms Warburg Pincus, a global private equity firm, and Novak Biddle Venture Partners. The investment positions the company for nationwide expansion.

PRINCETON, NJ
Princeton Optronics Inc., an innovator in active components for fiber-optic networks, today announced that it has closed a second round of financing in the amount of $25 million. Co-led by Investor Growth Capital and St. Paul Venture Capital, this latest funding round also includes investments from Technology Venture Partners and first round investors, Novak Biddle and Intel Capital.

ALAMEDA, CA — Healinx Corp., the premier provider of Web-based, doctor-patient communication services, today announced that it has closed its Series D round of venture capital financing. To date, the company has raised $41.4 million in investment capital, of which, $13.1 million was raised in the Series D round. The round was led by U.S. Venture Partners and includes Venrock Associates, e.Lilly Venture Fund (a business division of Eli Lilly and Company), SI Venture Management (a GartnerGroup affiliate), and Concord Venture Management, and will be used for product development, operations, and sales initiatives. Newton F. Crenshaw, vice president, e.Lilly will join the Healinx Board of Directors.

TORONTO — Pinetree Capital Corp. (CDNX: PNP), a Canadian venture capital company, today announced that its common shares have been conditionally approved for listing on the Toronto Stock Exchange (TSE).