Private Equity Week Wire for Wednesday 2/28

ANN ARBOR, MI — Ann Arbor- based EDF Ventures, a
venture capital fund focused on commercializing emerging technologies, today
announced the promotion of Principals Jim Adox and Beau Laskey to the
position of Partner. Adox joined the firm as an Associate in 1997 following three years with Tenneco Automotive as a Sales, Marketing and Business Development Manager responsible for South American Operations. Upon joining EDF, Adox worked closely with Hayden Harris in the founding and growing of Xtera Communications, a groundbreaking investment in the optics field. Today, he works within the science and engineering practice areas sourcing investment opportunities primarily in communications, infrastructure, and network hardware arenas. Laskey joined EDF Ventures as a Consultant in 1997 while completing an MBA at the University of Michigan Business School and prior to joining EDF fulltime as an Associate in 1999.

BOULDER, CO — Pure Matrix Inc., a developer of next-generation products and services for the Mobile
Internet, today announced that it has successfully completed a $2.7 million Series B round
of investment.

The financing was led by the Silicon Valley venture capital firm AltoTech Ventures. Other
investors include individuals affiliated with Pure Matrix.

NEW YORK — Deutsche Asset Management, an affiliate of
Deutsche Bank Private Equity Fund, announced today that it is leading a $5
million round of financing for FareChase, the first
web-enabled search engine for real-time comparison shopping in the e-travel
industry. Deutsche Asset Management is providing $3 million and taking the
lead in negotiations for the balance, in an effort to foster FareChase’s B2B
growth and licensing of its technology, at a time when e-travel industry
revenues have doubled , making it the fastest growing sector of e-commerce.

LONDON — The Security People Group Ltd. announced securitycell.com, a management solution for the industrial and commercial security industry. The website is planned to go live July 2001. The deal includes a commitment of over $3.6 Million from Maxelerator.com who are a full service business developer and technology accelerator with offices in North America, Asia and Europe.

NEW YORK — Harris & Harris Group Inc. noted today
that privately owned NeuroMetrix, Inc. has announced that it has secured $13 million in
third round venture financing. Harris & Harris Group invested $750,000 in this round
through the conversion of its previously existing debt security of the same amount.

NeuroMetrix is a spin-off from the Harvard-MIT Division of Health Sciences and Technology.
It is developing a new class of non-invasive products for point-of-care testing of
neuromuscular disorders.


BOCA RATON, FL — Vfinance.com, The Investment
Banking Channel, has launched a powerful new online tool that promises to change the
way public companies secure capital from institutional investors. The new PIPE (private
investment for public equity) Engine is an online tool that notifies a public company in
seconds whether their funding request matches the criteria of hundreds of pre-qualified
institutional investors. The system then generates and delivers a confidential Term Sheet
to successful applicants within 48 hours.

ARLINGTON, VA — GroupServe, a leading developer of
wireless-enabled, Internet-based groupware applications for team collaboration,
announced today it secured $3.5 million in a first round of venture financing, bringing the
total amount raised to date to $6.4 million.

Leading the investment was Monumental Venture Partners LLC’s fund, MVP America, LP,
with additional funding coming from ForceNine, LLC and several individual investors.


CHICAGO — SB Partners Capital Fund, LP announces availability of its $40 million dollar fund exclusive to middle-market minority and women-owned businesses seeking growth capital. While the Fund currently focuses on companies in the financial services and franchising businesses, companies in other sectors of service, distribution and manufacturing industries will also be considered. Portfolio firms will receive an average investment of $3 million per company.

NEW YORK — DB eVentures, Deutsche Bank AG’s global strategic
private equity investor focused on financial services, today announced an equity investment
of $4 million in ClearForest, the leader in advanced unstructured data solutions. DB
eVentures is joined by Polaris Venture Capital, HarbourVest Partners and Walden Israel,
bringing the first closing of the second round of funding to $12 million.


TORONTO — Primaxis Technology Ventures Inc., an early stage seed capital
fund targeted at the advanced technology sector, announced today that James Richardson
& Sons, Limited has joined its six investors, bringing the fund total to a fully subscribed
$57.5 million. James Richardson & Sons, Limited has joined DuPont Canada Inc., MDC
Corporation, Battelle Memorial Institute, Crown Investments Corporation of Saskatchewan
(CIC) and founding investors, Royal Bank Ventures Inc. and BTG to create companies and
bring advanced technology ideas from the laboratory to the marketplace.

NEW YORK — Venture-backed mergers and acquisition
activity showed mixed results in the fourth quarter as total deal
value rose while the number of deals decreased, according to publisher Venture
Economics and the National Venture Capital Association (NVCA). The
fourth quarter brought a total of 42 deals valued at $8.3 billion,
compared with 59 deals for $6.7 billion in the previous quarter. For the year, venture-backed M&A volume reached $67.6 billion,
close to double 1999’s total of $35.3 billion. The most active quarter
of the year was the second period, which saw $27.8 billion worth of
activity.


SAN FRANCISCO — TelEvoke Inc., a company focused
on “connecting people to things(TM)” announced today that it has raised $6.7 million in its
second round financing. WI Harper Group led the round, with SBVC (SOFTBANK Venture
Capital) and Cardinal Venture Capital also participating. TelEvoke has raised over $10
million since it was founded in 1999.



FORT LAUDERDALE, FL — Privately held Bioheart Inc.
announced today that it has completed its first round of financing for a total of $11 million.
Included in the $11 million was a $1 million investment from Tyco Ventures, the venture
capital unit of Tyco International Ltd.

Bioheart is focused on developing cellular-based heart muscle regeneration therapies.
These serve as an alternative to current drug and device therapies and are designed to
prevent progression of heart failure and to improve heart function in heart attack patients.


OAK BROOK, IL — Looking Glass Networks, Inc. announced that it has raised an additional $275 million in debt capital to fund its metro optical network build-out plan. This increases Looking Glass