Venture
Update Vol. VIII, #2, March 2004
Done Deals
Raleigh - Icagen Inc. (www.icagen.com) has completed a private placement of $19.5 million to fund the continued development of the company's treatments for sickle cell anemia and epilepsy and to help the company expand its ion channel drug discovery pipeline. Participating in the financing round were Quintiles Transnational, Venrock Associates, Alta Partners, HBM, Chinese Development Industrial Bank and JP Morgan Partners. Contact Richard Katz (919.941.5206).
Raleigh - Identify Software (www.identify.com) has secured $15 million to expand its global presence and promote its application support software. Star Ventures and Evergreen Partners Ltd. co-led the round, with participation from existing investors Earlybird, Formula Ventures, Infinity Funds, Intel, Mofet, NIF Ventures, UBS and Vertex Venture Capital. The company has dual headquarters in Israel and Raleigh. Contact Betsy Graham (919.878.3717 x239).
RTP - Amphora Discovery Corp. (www.amphoracorp.com) has raised $13 million in third round funding from 3i Technology Partners, MPM Capital, Venrock Associates, Arch Ventures and Versant Ventures. The funds will be used to move Amphora's product candidates into clinical development and make several new hires this year. Amphora plans to keep the round open through March 2004, with a potential of raising a total of $20 million. Contact Jeff Riley (919.287.6200).
RTP - Qualyst, Inc. (www.qualyst.com) has closed an undisclosed, oversubscribed series A preferred stock offering to support operations and the company's growing customer base. Burton Advisers Ltd. of London acted as the exclusive financial advisor and placement agent in the offering. Qualyst, a spin-off from UNC-Chapel Hill, has developed technology that allows researchers to predict with improved accuracy the effect of a particular drug within the human body. Contact Scott Neuville (919.313.6500).
Cary - Engineous Software, Inc. (www.engineous.com) has acquired Synaps, Inc., an Atlanta-based design optimization software and services company, for an undisclosed amount. The acquisition will allow Engineous to expand its process integration and design optimization business, especially in the aerospace market where Synaps was experienced. Key technology and features from Synaps' Epogy product will merge with Engineous' iSIGHT product. Contact Janet Wylie (919.677.6700).
RTP - Paradigm Genetics, Inc. (www.paradigmgenetics.com) has entered into a definitive agreement to acquire Pittsburgh-based TissueInformatics, which specializes in the development and application of automated pathology software for the quantitative analysis of tissue changes in drug discovery, disease assessment, toxicology and tissue engineering. The acquisition will occur through an all-stock transaction. Paradigm Genetics has advanced research capabilities in biomarker-enabled drug discovery. Contact Melissa Matson (919.425.3725).
Cary - Research Triangle Software (www.rtsz.com), a developer of encryption technology, has acquired RTP-based FullSeven Technologies (www.fullseven.com), an email technology provider, for an undisclosed amount. Southern Capitol Ventures, an investor in FullSeven, was instrumental in putting together the acquisition. Research Triangle Software also announced that the U.S. Army has placed several orders for the company's CryptoStick product - a portable encryption device that is small enough to fit on a key chain. Contact Bob Crowley (919.657.0505).
On The Up
Datacraft Solutions, Inc.
Durham, NC
Since its founding in June 2001, Durham-based Datacraft Solutions, Inc., has developed software tools to empower small and mid-sized companies in the cost-effective automation of outdated supply chain systems. Eliminating the hassles of maintaining a company's own complex IT infrastructure, Datacraft hosts all aspects of the solutions on their own servers, through a secure Internet gateway, helping companies concentrate on growth rather than IT overhead.
Datacraft's premier product, Signum, helps automate the Kanban replenishment process of lean manufacturing, which is devoted to identifying and eliminating waste in the production environment. Signum integrates inventory barcode scanners with a desktop interface that helps manufacturers automatically issue replenishment signals to suppliers at the point of use.
As a result, Signum ensures that inventory levels are properly maintained, and it also enables full collaborative communication throughout the supply chain.
“The term Kanban is a Japanese term for 'visual record,'” said Matthew Marotta, Datacraft's founder and CEO. “The Kanban process focuses primarily on minimizing the need for overhead by linking interdependent supply system decisions and actions resulting in a highly visual, responsive and simple to manage process.”
Marotta, who has more than 10 years experience as a software consultant and software designer for many of the Fortune 500 companies, said Datacraft's low-cost, low-risk solution is the ticket to future success.
“Datacraft has an enormous market potential as the majority of manufacturing companies are forced to look at the current processes and eliminate waste within the supply chain in order to survive in today's market place,” said Marotta.
Datacraft (www.datacraftsolutions.com) will be among the early-stage presenters at CED's upcoming Venture 2004 conference in April. Contact Matthew Marotta (919.667.9804).
New Developments
RTP - The North Carolina Biotechnology Center (www.ncbiotech.org) has presented North Carolina Gov. Mike Easley with a strategic plan for growing the state's biotechnology industry and for creating high-paying jobs. The plan, entitled “New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology,” includes 54 specific recommendations. The Biotech Center's plan is available online www.ncbiotech.org/strategicplan. Contact Barry Teater (919.549.8814).
Raleigh - North Carolina State University (www.ncsu.edu) and UNC-Chapel Hill (www.unc.edu) have established a joint department of biomedical engineering, strengthening ties between UNC-Chapel Hill's School of Medicine and NC State's College of Engineering. This joint effort will support the application of science and engineering, mathematical analysis and computer techniques to biomedical health. Research areas range from increasing the durability and biocompatibility of artificial joints to designing injectable biosensors that help guide cancer therapies. Contact Jon Pishney (919.515.3848).
Cary - 3Dsolve (www.3dsolve.com) has received a $1.83 million contract working with lead contractor Computer Sciences Corporation (CSC) to develop the US Army Training and Doctrine Command's first Level IV Interactive Multimedia Instruction (IMI). Under the contract, 3Dsolve will develop a set of advanced simulations and supporting software for desktop computers that will form the basis of the 167 hours of hands-on instruction required for the US Army Signal Center's entry-level Information Systems Operator-Analyst course. Contact Richard Boyd (919.469.9954).
Greensboro - Batanga (www.batanga.com), the largest media company exclusively focused on young Hispanics in the United States, has doubled the amount of sales so far in 2004 compared to the same time last year. The company closed 2003 with its third consecutive profitable quarter. New advertising customers in 2004 include Wal-Mart, Unilever, Heineken and Jeep. Renewal advertising customers include McDonald's, Ford, Mexicana Airlines and BellSouth. Batanga's investors include Southern Capitol Ventures, Piedmont Angel Network, Tri-State Investment Group and The Atlantis Group. Contact Troy McConnell (336-510-5595).
Morrisville - SciQuest, Inc. (www.sciquest.com) announced that Schering-Plough Corporation and Biogen Idec have signed multi-year license agreements for SciQuest's Spend Director product - a supplier enablement and catalog management solution that enhances an organization's procurement processes. SciQuest also introduced two new modules, “Chemical Manager” and “Supplies Manager,” that complete the company's materials management solutions. Contact Kristi Lee (919.659.2406).
Durham - Serenus Technology Group (www.serenus.com) has exceeded product development milestones for Durham-based RedPelican, Inc. (www.redpelican.net). Serenus uses a design-goal transfer methodology and outsourced development model to help RedPelican bring its marketing communications software product, InFlight, to market on time and on budget. Since partnering in early 2003, employees of Serenus have become project-based extensions of RedPelican's team. Contact Shawn Ramsey-Kroboth (919.621.0737).
In the Pipeline
Durham - Ribonomics (www.ribonomics.com) has received a $150,000 loan from the N.C. Biotechnology Center (www.ncbiotech.org). Ribonomics will use the money to further the development of its technology that allows for the isolation and characterization of functionally related genes in vitro and in vivo. The company's technology exploits the cell's own organizational scheme for protein expression. Contact Chris Kelly (919.544.1023 x2117).
RTP - Norak Biosciences, Inc. (www.norakbio.com) has signed an agreement with RTP-based Cropsolution, Inc. (www.cropsolution.com) to purchase selected subsets of Norak's small molecule compound library. Norak has assembled a compound library of over 900,000 drug-like, small molecules and is actively screening these compounds in its G protein-coupled receptor (GPCR)-based drug discovery program. Cropsolution will use the selected compounds in its agriculture discovery program. Contact Neil Moore (919.248.8000).
Raleigh - Salix Pharmaceuticals (www.salix.com) has started marketing its drug, Azasan, to physicians. The medication is a second-level treatment for ulcerative colitis, an inflammatory condition of the gastrointestinal tract. Salix acquired Azasan from Wilmington-based aaiPharma in November 2003. Another major Salix drug, Colozal, treats patients with either mild or moderate active ulcerative colitis. Contact Michael Freeman (919.862.1000).
Durham - NOBEX Corporation (www.nobexcorp.com) and the Dow Chemical Company have agreed to collaborate on plant-based production of a proprietary peptide currently in preclinical development by NOBEX as a potential appetite suppressant to treat obesity. NOBEX will provide a proprietary gene sequence that will be used in combination with Dow Plant Biopharmaceuticals' proprietary expression technology. Contact Christopher Price (919.474.0507).
RTP - Metabolon (www.metabolon.com) has collaborated with Massachusetts General Hospital and the University of Pittsburgh School of Medicine on a new biomarker study funded by The ALS Association (ALSA). Researchers will work together on the study, Identification of Diagnostic Biomarkers and Therapeutic Targets for ALS, to find a more rapid and accurate diagnostic test for ALS using biomarkers found in cerebrospinal fluid and blood. Contact John Ryals (919.597.6592).
RTP - The Council for Entrepreneurial Development (www.cednc.org) has finalized more program details for Venture 2004, scheduled for April 27-28 at The Friday Center in Chapel Hill. In addition to previously announced keynote speaker Senator Bob Dole, CED confirmed two other featured speakers: The Carlyle Group's co-founder David Rubenstein and Johnson & Johnson Development Corp.'s President David Holvek. Venture 2004 will also feature a marquee “Fund of Funds” Manager panel with several leading private equity managers. CED has also selected the final group of Venture 2004 presenting companies: Chapel Hill-based Ablatrics, Charlotte-based Alveolus, Cary-based Bandwidth.com, Inc., Cary-based BioPheresis Technologies, RTP-based Curry Pharmaceuticals, Raleigh-based FLX Micro, Inc., Durham-based KBI BioPharma, Inc., Durham-based Nuada Pharmaceuticals, Inc., Durham-based Polyglot Systems, Inc., Durham-based Red Pelican, Inc., RTP-based SCYNEXIS, Inc., Raleigh-based Vital Source Technologies, Inc., Raleigh-based WindChannel Communications, LLC, Chapel Hill-based Xintek, Inc. (formerly Applied Nanotechnologies), and Morrisville-based Ziptronix. Contact Andrea Cook (919.549.7500).
Mark Your Calendar!
Venture 2004
April 27-28, 2004
The Friday Center, Chapel Hill, NC
www.cednc.org/venture
For more information, visit the CED Web site (www.cednc.org) or call 919-549-7500.
Venture Update is published by the
Council for Entrepreneurial Development (CED)
an entrepreneurial support organization located in the Research Triangle Park, N.C.
Lisa Rowe-Ralls, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
FAX: 919-549-7405
email: news@cednc.org