Venture
Update Vol IV, #11, December, 2000
Research Triangle Park—Scynexis Chemistry & Automation Inc. (www.scynexis.com), a drug discovery company spun out of Avenits CropScience, closed first round financing in November 2000. The $15 million round of combined debt and equity funding was led by Paris-based venture fund Genavent and included S.G. Asset Management, Ventech, and a Franco-American bank. Aventis retains a 19 percent stake in the company. Contact: Terry Marquardt (919.544.8600).
Pittsboro—Biolex Inc., which plans to make human and animal proteins from genetically engineered plants, completed a $6.5 million venture financing round in December 2000 led by Franklin Street Capital of Chapel Hill and including Intersouth Partners, Kitty Hawk Capital, Wakefield Group, and Tall Oaks Capital. Biolex has raised $9.1 million to date. Contact Gabe Cipau (919.542.6598).
Wilmington—VisionAIR, Inc., (www.visionair.com), a designer and developer of adaptable wireless data applications for mobile workforces, received $24 million in Series D financing. The round was led by GE Equity and included Sinclair Ventures, Inc., as well as existing investors Bank of America Capital Investors and Southeast Interactive Technology Funds. Contact: Richard Holloman (910.602.7368).
Wilmington—TalkingNets (www.talkingnets.com), a telephony application service provider (ASP), received $20 million in second round funding in November 2000. Charles River Ventures and Venrock Associates co-led the round, which included TriTech Partners and the Hatch Group. Venrock Associates and the Hatch Group are seed investors in TalkingNets. Contact: Tony Surak (910.332.1870).
Charlotte—MortgageRamp (www.mortgageramp.com) secured $50 million in second round funding in November 2000. Banc of America Mortgage Capital Corporation led the round which included Deutsche Bank, Allied Capital Corporation (Nasdaq: ALLC), Bank United, Compaq Computers Corporation, Fannie Mae, Moody's Investors Services, Inc., Standard and Poors, and VerticalNet. Contact Doyle Spears (404.531.4996).
Charlotte—Longleaf Venture Fund closed its fund of $26 million in November 2000. The fund plans to invest in early-stage startups across North Carolina over the next three years. Its primary focus will be companies associated with the state's research universities. Contact: John Ciannamea (704.331.9991).
Durham—Artecel Sciences Inc., a biotech company focused on using specific cells of human adipose tissue, or fat, for medical applications, received $4 million in first round venture financing in November 2000. Eno River Capital led the round, which included Tristate Investment Group IV, Bio World Venture Capital Corp., Fujisawa Investment for Entrepreneurship LP and individual investors. Contact: William Wilkison (919.313.4710).
Charlotte—WebServe Inc., (www.webserve.net), a provider of web development and hosting services for businesses in North and South Carolina, has formed an agreement to be purchased by CT Communications in November 2000. The deal is worth $5.7 million in cash, with the potential of another $5 million cash payment in a year if WebServe meets certain revenue targets. Contact: (704.556.7482).
Raleigh—Salix Pharmaceuticals Ltd. (www.salixpharm.com) raised approximately $14.1 million through a private placement of about 2.26 million shares of common stock in November 2000. The offering was led by the institutional investment funds Oxford Biosciences and Deerfield Partners. Salix develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases. Contact: Michael Freeman (919.862.1000).
New Developments
Research Triangle Park—Relativity
Technologies (www.relativity.com),
a developer of legacy-to-e-business transformation
solutions, formed a strategic alliance with
London-based Computer Sciences Corp., an IT
outsourcing, consulting and systems integration
company, in November 2000. Contact: Lisa Goldbaum
(212.772.3071).
Research Triangle Park—Xanthon Inc. (www.xanthon.com), a developer of an instrument for the direct analysis of RNA, DNA and proteins, received a patent from the U.S. Patent and Trademark Office in December 2000. The patent deals with the method of manufacturing part of the technology on the instrument. Called the Xanthon Expression Analysis System, the instrument will be sold starting next year to pharmaceutical companies that will use it to analyze DNA/RNA to discover targets for drugs. Contact: Susan Taylor (919.572.0707).
Chapel Hill—BioSignia Inc. (www.knowyournumber.com), a developer of evidence-based medical profiling methods for predicting the risk of contracting certain diseases, was awarded two patents in November 2000 for a novel statistical method called Statistical Analysis, and for a predictive method called Multiple Biomarker Predictive Modeling. Contact: Joe Chimera (919.933.2021).
Durham—Cree, Inc. (Nasdaq: CREE) (www.cree.com), which makes light-emitting diodes used in cellular phones, has entered into a definitive agreement to purchase Sunnyvale, California-based Spectrian's UltraRF division for about $113.5 million in cash and stock. UltraRF makes power transistors that boost signals in wireless networks. Contact: Fran Barsky (919.313.5397)
Research Triangle Park—Bloodhound Software,Inc. (www.bhsoftware.com), an application service provider focused on medical claims overpayment protection services, has signed a service agreement with Inter-Community Services (ICS), a California-based medical services organization. Under the terms of the two-year agreement, Bloodhound will implement its ClaimsGuard(SM) Overpayment Protection Service to provide an ongoing prospective analysis of ICS' claims prior to payment. Contact: Michael Ansel (919.991.1117).
Research Triangle Park—Venture 2001, the 18th annual Research Triangle Venture Conference sponsored by Council for Entrepreneurial Development (CED) is currently accepting applications from companies seeking to present. The conference will be held in Chapel Hill on April 17-18, 2001. Thirty-five companies will be selected. Selection is highly competitive and will continue throughout January and February 2001. Online applications can be completed at www.cednc.org/venture/2001.
On The
Up
ARGOMED
A Cary-based company has emerged as a leading
developer and marketer of minimally invasive medical
devices for the treatment of urological
disorders.
ArgoMed Inc. was founded in Israel in the early 90s to develop a system for the treatment of prostate disorders such as benign prostatic hyperplasia (BPH). BHP is a non-malignant enlargement of the prostate gland affecting the passage of urine - a condition that affects about 50% of men by the age of 50, and 95% by the age of 85. The company developed a unique water-induced thermotherapy (WIT) technology and filed its first patent application in 1992. Administered by the Thermoflex® System, WIT provides a safe, minimally-invasive, effective and economical treatment for BPH and other prostate diseases.
"Our WIT procedure is a simple and pain-free therapy that requires no sedation. It is ideally suited for the outpatient clinic or doctor's office, and reflects the trend of surgical procedures away from traditional hospital settings," says Richard Klein, president and CEO. "It's an entirely new approach and has promise to treat other prostate conditions in the future such as chronic prostatitis and prostate cancer."
ArgoMed received its first capital infusion in 1995 from a group of investors in Tel Aviv. In 1999, it raised $10 million in a private equity round that was led by RTP venture firm, A.M. Pappas & Associates.
With its corporate offices in the RTP, ArgoMed maintains an engineering and manufacturing subsidiary in Israel and also has a European sales office in Germany.
Streak Luncheon
Presenters: ViASIC, LiveWire Logic
December 14, 2000
Noon - 1:30 p.m.
Marriott, RTP
Mergers
& Acquisitions 2001
January 9, 2001
Noon - 6:00 p.m.
Washington Duke Inn & Golf Club
StartUp Now!
January 23, 2000
Embassy Suites, RDU Airport
Triangle Venture Breakfast Series
January 26, 2001
7:30 - 9:00 a.m.
Marriott, RTP
Initial
Public Offerings 2001
March 6, 2001
Noon - 6:00 p.m.
Marriott at Research Triangle Park
Venture
2001
April 17 - 18, 2001
The Friday Center
Chapel Hill, N.C.
Biotech
2001
May 21, 2001
The Friday Center
Chapel Hill, N.C.
For more information about these events or to register, visit the CED Web site at www.cednc.org or call 919.549.7500.
CED is a private non-profit organization supported, in part, by corporate contributions, including funding from Kauffman Center for Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation and Kilpatrick Stockton, L.L.P.
Research Triangle Venture Update is published by
the Council for Entrepreneurial Development (CED), a
non-profit organization located in Research Triangle
Park, N.C.
Editor Carolyn Foy, CED
P.O. Box 13353
RTP, NC 27709
Phone: 919.549.7500
Fax: 919.549.7405
Email: mcfoy@cednc.org