Private Equity Week Wire for Tuesday 1/9

SAN DIEGO — Venture Catalyst Incorporated (Nasdaq:VCAT) announced today that all business activities will focus solely on the gaming industry. VCAT will provide infrastructure, technology integration, and consulting services for California Indian gaming and gaming related clients. Services to other clients will be phased out over the next 30 days and transitioned to other service providers.
This decision was based on VCAT’s leading position in the California Indian Gaming market, on the tremendous growth opportunities for its gaming related business and weakness in the IT and Web development markets.


CRANBURY, NJ — Songbird Hearing Inc. (http://www.SongbirdHearing.com), the maker of the world’s first disposable hearing aid, announced today that it has raised $45 million in its fourth round of equity financing. This round was led by Investor AB through its wholly owned subsidiary Investor Growth Capital, a healthcare, information technology and telecommunications private equity and venture capital investment group.

SAN DIEGO — LightPointe Communications Inc., a designer and manufacturer of free-space optical products that provide quick and cost-effective connections to metropolitan fiber networks, today announced that it has secured $6.5 million in debt financing from Silicon Valley Bank (Nasdaq:SIVB) and GATX Ventures Inc. The funds will be used to provide working capital and equipment for the company’s continued expansion efforts in the United States, Europe, Asia, Latin America and India. The funding brings to $18.5 million the amount of capital raised by LightPointe in less than four months.

EDISON, NJ — Aplion Networks, a leader in driving growth and profitability for communication service providers (CSPs) by enabling them to offer the first integrated hardware and software solution, Network Virtuoso(TM), to deliver dynamically tailored services to their residential and small business customers, today announced a $30 million round of funding. The deal was lead by Investor AB, via its wholly owned subsidiary Investor Growth Capital and includes contributions from WR Hambrecht + Co, Intel Communications Fund and Ray Stata. Investor AB and WR Hambrecht + Co will both be represented on Aplion’s Board of Directors. Mr. Stata is currently a board member.
LOS ANGELES — iBoost Technology, Inc., (iBoost.com), a leading owner and operator of a network of Web sites offering content, community, and eCommerce to businesses and consumers worldwide, today announced it has received B-round financing through a significant investment led by SBVC, a leading venture capital fund for Internet companies as well as Access Venture Partners and Quest Capital Partnership.

MONTREAL — Qbiogene Inc. announced today that it has successfully completed a private round of financing on December 22nd totaling $31 million.
The lead investor was Vertex Technology Fund (III) Pte Ltd. of Singapore. The Quebec Solidarity Fund and Investissements BioCapital as well as several international investors also gave their support to Qbiogene. They include: Double Helix Pte Ltd, a wholly-owned subsidiary of Singapore Technologies (Singapore); New Medical Technologies (Basel, Switzerland); PolyTechnos Venture-Partners (Munich, Germany); Schweizerische Gesellschaft fur Aktienhandel & Research AG (Zurich, Switzerland); and Bio World Venture Capital Corporation (Taipei, Taiwan).


OTTAWA — Solidum Systems Corp., a fabless semiconductor company and leader in wirespeed packet processing technology, today announced that it has secured US$16.5 million in financing.
The investment was led by Vertex Management Israel and included strategic investment from Intel Capital. Nomura International also participated in the round as a new investor together with existing investors Business Development Bank of Canada, Formula Growth Fund, Lawrence & Co. and Skypoint Capital.

PORTLAND, OR — WebCriteria Inc., the experts in online customer experience analysis, today announced the closing of $12.5 million in second round financing. Vanguard Venture Partners was the lead venture investor in this round of funding, which also included Lamoreaux Partners, SI Ventures, and other previous WebCriteria investors. The company also announced the addition of Dan Eilers, General Partner of Vanguard Venture Partners, to its Board of Directors.

SAN DIEGO — WebSideStory Inc., the leading provider of real-time Internet intelligence for e-business, today announced that it has received $7.5 million in funding from two Silicon Valley-based venture capital firms. The investment from TA Associates and Summit Partners caps a banner year 2000 for WebSideStory. The company, which pioneered the real-time method of Web traffic analysis in
1996, saw tremendous growth in several areas last year.

SANTA CLARA, Calif. — OnLight Inc., first of a new category of Integrated
Application Service Providers (IASPs), has raised approximately $7.5 million in its Series B Preferred Stock financing from two venture capital firms, Alliance Ventures and The Galleon Group, along with certain individual
investors. The financing round closed on October 31, 2000. Additionally, the
Company raised $4.5 million in equipment financing primarily from Cisco
Capital, bringing total capital raised to date to $18 million.

BLUE BELL, Pa. — AirClic has closed on a round of substantial funding from
Symbol Technologies, Inc. (NYSE: SBL), Ericsson Business Innovation AB, Motorola, Inc. (NYSE: MOT) and a private investor group led by Goldman Sachs Group (NYSE: GS). In addition, AirClic has acquired Connect Things, a
technology spin-off from LM Ericsson AB (NASDAQ:ERICY). Connect Things, based in Stockholm, Sweden, brings significant technical capability as well as an advanced database architecture and “high-volume switch” to AirClic. AirClic’s ONE-SCAN(TM) technology allows users of mobile and other
Web-enabled devices to directly access the Web site of their choice without the laborious task of typing Internet addresses using the telephone keypad or the alternative small keyboards integrated into cellular telephones, PDAs or two-way pagers.

HERZLIA, ISRAEL — Despite the `dry season’ for venture capital fund investments in start-up companies, Veritas Venture Partners continues to lead investments in innovative seed stage Israeli hi-tech companies led by strong management teams. During the last few months of 2000,Veritas led seed-round investment in three Israeli start-ups, totaling nearly $10 million. The investments are in the
fields of cellular communications and Internet software infrastructure. Veritas chose to invest in the three companies – Navicula, Bamboo and e-Ship-4u after being impressed by the strong management skills and distinct
technological edge possessed by each of the companies’ lead teams and recognizing the excellent investment opportunity presented by these areas.

HELSINKI, FINLAND — AVS Technologies, a leading wireless and fixed Internet video technology company, announced today that it has secured USD 6 million in its second round of funding. Zouk Ventures Ltd., a highly focused venture capital (VC) company specialized in the European Internet, communications and
technology sectors, is investing USD 5 million in AVS Technologies.The rest of the package is a follow-on being provided by Nokia Venture Partners, a leading VC fund focused on globally-active mobile-technology start-ups and
leading first round investor of AVS.

NEW YORK — MonsterDaata Inc. (OTCBB: MDDC), an information infrastructure
utility company, today announced that it had completed a private placement of
$10.7 million of 7% series C convertible preferred stock and warrants led by
ComVest Venture Partners, JF Shea Ventures, RMC Capital and Tech Inspirations. The total amount of the private placement includes the
conversion of $3.9 million of 8% convertible subordinated promissory notes issued by the Company in September and October 2000 and $728,000 of Senior Promissory Notes issued in May 2000. Commonwealth Associates acted as
financial advisor and placement agent in connection with the private placement.

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