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Private Equity Week Wire for Tuesday 10/23

NEW YORK — Clever Island, the fastest growing online educational service for children ages three to eight, today announced the completion of its third round of financing totaling $5 million.
Coral Ventures, Montefiore Partners, and Poalim Capital Markets led the round with additional funding from previous investors. The financing, at a time when investor backing has dropped considerably for the Internet market, will support the company’s strategic growth plans. Built on a subscription-based revenue model, growth plans include the expansion of Clever Island’s domestic distribution channels, as well as continued international marketing efforts to tailor the website for localized service in Asia, Europe and Latin America.

LEHIGH VALLEY, PA — CENiX Inc., a leader in the design and automated manufacture of next generation high-speed optoelectronic interfaces, today announced that it has raised an additional $52 million in a combination of second round equity and debt financing.
With the participation of its Series A investors, and the addition of a global network of strategic and financial investors, this round brings the company’s total funding to $77 million.
In addition to first round investors, the recently completed Series B equity round of $34 million includes POSDATA Co., Ltd., AK Investments, LG Electronics Inc., Athena Venture Fund, Samwhan Corp., S.P. Comtech Co., Ltd., Optical Capital Group and other strategic partners and individuals. The $18 million in debt financing was funded by Western Technology Investment and Comdisco Ventures in support of CENiX’s manufacturing infrastructure and automation equipment financing.

SAN JOSE, CA — Global Locate Inc., a creator of Assisted-GPS (A-GPS) technology for wireless devices and networks, announced today that it has closed its $12 million second round of financing.
The round was led by Firsthand Capital Management, Inc., and joined by GC Investments, LLC, along with the other first-round investors. The second round brings the total investment in Global Locate to approximately $22 million.

IRVINE, CA — US LABS Inc., a leading provider of cancer diagnostic services, today announced that it has completed late-stage venture capital equity financing of $15 million to fund its continued growth.
The funds will be used for working capital to support the company’s growth plans, including expansion of its cancer genetics business, and construction of an East Coast facility. US LABS provides critical diagnostic information to cancer patients and their doctors.

US LABS raised $15 million in late-stage equity in a financing led by the San Francisco office of ABS Capital Partners (with headquarters in Baltimore). Highland Capital Partners of Boston and Accel Partners of Palo Alto, Calif. participated in the financing round.

BOSTON — Berkshire Partners LLC (“Berkshire”) announced today the final closing of the Boston-based private equity firm’s sixth investment fund, Berkshire Fund VI LP. The Fund, with total commitments of $1.7 billion, was oversubscribed by Berkshire’s prior investors and a limited number of new entrants.

DENVER — IQNavigator Inc., the leading provider of contingent workforce management software, today closed on $20 million in additional funding, bringing total financing for the company to $40 million.
IQNavigator’s most recent round is one of the enterprise software industry’s largest financings of the year.

This round of financing was led by New York-based private equity firm Baker Capital. Additional investors include The Hillman Company, PERA of Colorado, Sequel Venture Partners and Raeder Venture Fund.

GREENBELT, MD — OAO Technology Solutions Inc. (Nasdaq:OAOT) today announced that Terrapin Partners Subsidiary LLC (“Terrapin Partners”), a J.F. Lehman & Company affiliate, has acquired all 5.7 million shares of OAOT common stock held by Safeguard Scientifics, Inc. and two of its affiliates (“Safeguard”).
Terrapin Partners paid $9.4 million in cash, or $1.65 per share, for the 5.7 million shares of OAOT stock held by Safeguard. Terrapin Partners also issued to Safeguard $2.0 million of convertible preferred stock, or $0.35 per share, for each OAOT share purchased.

LONDON — KWI, one of the pioneers of trading and risk management systems that enable energy companies to profit through market volatility, has secured more than $14 million of funding to launch its next phase of expansion.
KWI’s blueprint to become the number one player in the energy enterprise trading systems market has been backed by Insight Venture Partners, a leading New York private equity company that specialises in the Information Technology sector.
The deal coincides with two major board appointments at KWI, which won a Queen’s Award for Enterprise: International Trade in this year’s honours. Michael Laven, former Chief Executive Officer at Infinity, the derivatives trading and risk management company, has become KWI’s Chief Operating Officer. He has been joined by David Pitt, the European President of Convergent, who has been named as KWI’s Vice President of Field Operations.

PHOENIX — Wasatch Venture Fund, a Draper Fisher
Jurvetson affiliate, is the lead investor for the announced $3.8 million
initial closing of the Series B equity financing round for Lytek Corporation.
Lytek is developing long wavelength Vertical Cavity Surface Emitting Lasers
(VCSELs) at 1310 nm used for data-communication applications. Intel Capital
participated in this round and an additional $1.5 million dollar debt fund has
been secured.

WAYNE, PA — Internet Capital Group Inc. (Nasdaq: ICGE) is offering to purchase for cash,
at prices determined by a “Modified Dutch Auction” procedure within the
purchase price range of $200 to $250 per $1,000 principal amount, Internet
Capital Group’s 5 1/2% Convertible Subordinated Notes due 2004 (the “Notes”)
up to a maximum aggregate principal amount of $200 million (the “Offer”), or
approximately 35% of the outstanding principal amount of the Notes, as more
completely described in Internet Capital Group’s Offer to Purchase dated
October 1, 2001.

MINEOLA, NY — FatWire Software, a leading provider of enterprise-level dynamic content management software and developer of the powerful Web-application assembly system UpdateEngine5, today announced that the company has completed a second round of funding at $10 million.

READING, ENGLAND — Information management specialists, kVault Software Plc (“KVS”), announces that it has raised third round funding of $13 million USD (9 Million Pounds Sterling U.K.) in Series A Preference shares. In less than two years, the Company has established a market leading position with Enterprise Vault, one of the industry’s most comprehensive email management systems to manage, archive and retrieve the spiraling volumes of corporate email messages and other unstructured information. Since its formation in November 1999, the Company has made sales to more than 50 blue chip customers, established a direct sales and support presence in the UK, US, Europe and Australia and secured global strategic partnerships.

MENLO PARK, CA — The Sprout Group, a venture capital affiliate of Credit Suisse First Boston, today announced that it led a $19.2 million Series D round of financing in Metabasis Therapeutics, a biopharmaceutical company developing products for diabetes, hepatitis, liver cancer and other liver-related diseases. Sprout invested $8 million in the round, with the remainder coming principally from existing investors MPM Capital Management and Interwest Partners.
The proceeds of this round will be used to broaden Metabasis’ drug discovery efforts utilizing its proprietary HepDirect(TM), liver-targeting technology platform, support clinical development of a HepDirect derived drug for primary liver cancer, establish new opportunities for the Company and generally fund continuing operations. Metabasis has a novel gluconeogenesis inhibitor for diabetes, MB6322, in Phase I clinical trials and expects a second product, MB6866, to enter the clinic early next year for the treatment of hepatitis B. Development of these products is fully funded by the Company’s partners, Sankyo Co., Ltd. and ICN Pharmaceuticals, Inc., respectively.

of the leading supply chain solutions firms in the refined petroleum products
industry — has restructured to better focus on providing software and
solutions that help suppliers, re-sellers and marketers better manage, monitor
and secure their supply chain. This restructuring was completed in conjunction
with a new round of funding, which was raised from internal investors and led
by Zero Stage Capital.

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