Venture Update Vol V, #4, May, 2001

Done Deals

Cary—3TEX, Inc. (www.3tex.com), a worldwide leader in developing next generation 3D fabrics and composites, today announced the successful conclusion of its first offering to an institutional investor, in the amount of $5 million. This infusion of capital into 3TEX will accelerate plant and equipment expansion in the US and Europe, expand product development, and heighten market awareness. Contact: Mae Mohamed (919.481.2500 x104)

Morrisville—Angiosonics (www.angiosonics.com), provider of therapeutic ultrasound technologies, raised an undisclosed amount of funding from Gemini Israel Funds, Gemini Systems, and a third investor based in Belgium. Contact: Elizabeth Long (919.468.0049)

Morrisville—Etrials (www.etrials.com), developer of an online data retrieval system for patient-experience information and quality-of-life data, raised a total of $7 million from lead investor Capital Investment Partners and individual investors. The company will use the funding to expand operations and to continue product development. Contact: Cara Lewis (919.380.8408)

RTP—Full-Seven (www.fullseven.com), developer of software used to enhance day-to-day email, secured $1.1 million in Series A funding led by truePilot. Southern Capitol Ventures and Capitalyst also provided funding, which is earmarked for the launch and marketing of new products and hiring key employees. Contact: Chris Hooper (919.316.1112)

Charlotte—Global Capital Partners (Nasdaq: GCAP, www.gcapitalpartners.com), an investment banking and securities network holding company closed on $4.2 million in promissory notes convertible to stock. Contact: Martin Sumichrast (704.643.8220)

RTP—Icagen Inc. (www.icagen.com), a drug discovery company, secured $23 million in private placements from Taiwan's China Development Industrial Bank and RTP's Quintiles Transnational with participation from return investors Abbott Laboratories, Alta Partners, New Medical Technologies and Venrock. The funds will be used to increase the number of ion channel drugs in discovery and development and to further programs currently in development. Contact: Kay Wagoner (919.941.5206)

Durham—Metagenix (www.metagenix.com), provider of enterprise data management software tools, landed $800,000 of $1.4 million in bridge funding to its Series B round from CS Private Equity Fund. The funding will be used to expand sales and marketing. Contact: Greg Leman (919.490.0034 x217)

Morrisville—MindLever, (www.mindlever.com), developer of management software for online educational content, was acquired by publicly traded e-learning software provider Centra for $6.5 million in cash and stock. The company previously raised $4 million from Alliance Technology Ventures, Mid-Atlantic Venture Funds and the North Carolina Enterprise Fund. Contact: Salim Bhatia (919.654.1700)

Durham—PracticingSmarter (www.practicingsmarter.com), which helps hospitals and large health care systems with greater productivity and improved patient care, received $1 million from SAS Institute in its $6 million first round. The rest of the round will come primarily from private investors. Contact: Jon Meliones, M.D. (919.313.2090)

Raleigh—TogetherSoft (www.togethersoft.com), developers of software development technologies and services, acquired Bergson Software Tools, a Netherlands-based software engineering services company, for an undisclosed amount of stock and cash. Contact: Alison Freeland (919.865.0576)

RTP—Ziptronix (www.ziptronix.com), developer of 3-D semiconductor fabric bonding and interconnect technology, received an investment from Xilinx, a device programming technology firm. The amount of the investment was not disclosed. The company raised $4 million in its first round of funding from investors including Alliance Technology Ventures. Contact: William Clark (919.485.5300)

New Developments

Raleigh—Intronn (www.intronn.com), creator of gene-splicing technology, will conduct cooperative research and development with the National Cancer Institute to develop an RNA based treatment for human papillomavirus infection and cervical cancers caused by the infections. Contact: Gerard J. McGarrity (919.831.2239)

Raleigh—InterAdNet spun out Honor Solutions, an Internet and wireless marketing firm, headed by CEO Stephanie Harold, former vice president of InterAdNet. Backed by individual investors, the company will most likely seek a $500,000 to $1 million round. Honor will initially focus on the healthcare, medical and pharmaceutical sectors. Contact: Stephanie Harold (919.481.4041)

Cary—LVL7 Systems (www.lvl7.com), a networking software company and MMC Networks, a wholly owned subsidiary of Applied Micro Circuits Corp. (Nasdaq: AMCC), entered into a strategic agreement to develop software to run on MMC Networks' processors. Sunnyvale, Calif.-based MMC Networks sells the majority of network processors on the market. Contact: Erik Dixon (919.379.2717)

Durham—Pinpoint Networks (www.pinpoint.com), a wireless broadband and search technology developer, appointed Tony Blake as CEO. The company also is raising $20 million in Series B funding, after a Series A round of $5 million in 1999. Contact: Rufus Manning (919.251.7021)

Charlotte—Verian Technologies (www.procureit.com), a provider of Web-based procurement technology, announced Patrick Romich as its CEO and board member, replacing Tehseen Ali who was promoted to chairman of the board. Contact: Robin Johnston (704.547.7301)

On The Up

Avesair
Cary-based Avesair has created a sophisticated marketing business system that allows wireless carriers and networks to schedule, deliver and track highly targeted marketing messages to any wireless device. The company's founders say this will enable customers to reduce customer turnover (or "churn"), improve average revenue per customer and convey various media (voice, internet and data) on a wireless platform.

"Avesair's core decision technology will enable carriers to increase revenues by matching the optimum message to their subscribers at the right time and the right place," says Jane Foreman, vice president of marketing. Their services range from advertising and marketing messages to targeted commerce and promotions to personalized content.

The company is led by the team that developed the Accipiter Admanager ad engine, used by many of the major online publishing sites such as Microsoft Network, c|net, go2net and iWON. It is their third company and second startup.

"We have the unique privilege of feeling like an experienced company," Foreman says. "We know the ups and downs of a new company. And, not only do we have the experience to keep up with this new market, we are working with proven technology that we know can meet the demands of the mobile economy."

Avesair secured $16 million of funding from Nokia Venture Partners and New Things, and seeks an additional $10 to $15 million in Series B funds for global expansion, development and mergers and acquisitions. Its core product (MATCH -- messaging and targeting for carriers and handsets) will launch in May. Contact: Jane Foreman (919.678.8181)

2000 VC Report Previewed

CED recently released its 2000 annual North Carolina Venture Report about statewide venture financings. Contact CED at 919.549.7500 to obtain a copy. The report shows a total of $1.99 billion in venture investments in North Carolina companies in 2000, for an increase of 32% over the 1999 total. Investors completed 195 deals in 168 North Carolina companies, which included year-over-year increases of 44% and 42% respectively.

Venture 2001 Showcases NC Entrepreneurship

CED hosted investors and entrepreneurs from around the world on April 17 & 18 at its 18th annual Venture 2001, the Southeast's premier venture capital conference. With approximately 1,100 attendees, including close to 350 investors, the conference attracted numerous participants from regions beyond the Southeast including the West Coast, the Northeast, the Midwest, and internationally from Canada and Europe. Investors attended to catch a glimpse at 36 of the state's top information technology and life science startups. Additional information can be found at http://www.cednc.org/venture/2001/presenters.html.

Mark Your Calendar!

Biotech 2001
May 21
8:15 a.m. - 6:30 p.m.
The Friday Center, Chapel Hill

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.