Venture
Update Vol. VIII, #10, November 2004
Done Deals
Durham - Motricity (www.motricity.com), a provider of content and media for handheld devices, has closed on $27 million led by Silicon Valley-based Technology Crossover Ventures (TCV). Existing investors also participated, including New Enterprise Associates (NEA), Intel Capital, Massey Burch Capital, Noro-Moseley Partners and Wakefield Group. Motricity (formerly PowerByHand) will use the funds for marketing, acquisitions and further expansion overseas. Contact Lynn Vitello (919.287.7345).
Durham - SJF Ventures (www.sjfund.com) has received more than $10 million in the initial closing of its second venture fund. Founding investors in SJF Ventures II, L.P., include MBNA America, Deutsche Bank, Wachovia, Merrill Lynch Community Development Company LLC, Key Community Development Corporation, the National Community Capital Association and the Community Development Venture Capital Alliance. SJF targets cleantech business services, and consumer products companies whose rapid growth results in significant entry-level job creation. Contact Anne Claire Broughton (919.530.1177).
RTP - Metabolon, Inc. (www.metabolon.com) has raised an additional $5 million to close its $9 million Series A round. Metabolon raised an initial $4 million in July 2004, led by The Aurora Funds, with participation from The Trelys Funds, Alexandria Real Estate Equities and other investors. This additional $5 million was led by Sevin Rosen Funds, with participation by existing investors. Metabolon will use the funds to strategically invest in technological advancements and business development. Contact John Ryals (919.572.1711).
RTP - Icoria (NASDAQ: ICOR, www.icoria.com), an integrated systems biology company, has raised $5 million through the sale of a three-year Secured Convertible Term Note in a private placement with Laurus Master Fund, Ltd. The financing allows Icoria (formerly Paradigm Genetics) to continue expanding in the healthcare and agrichemical markets. Contact Brian Ritchie (212.845.4200).
Durham - Centice Corporation (www.centice.com), a spinout from Duke University's Pratt School of Engineering, has closed $3 million in Series A funding from The Aurora Funds and Novak Biddle Venture Partners. Centice will use the funds to increase staff and, through partnerships, bring a series of computational sensor-based products to market. The company has also hired a new CEO, Steve Kaye, and launched its first product - a research-grade Raman spectrometer. Contact Steve Kaye (919.490.1000).
Morrisville - etrials Worldwide, Inc. (www.etrials.com), a provider of software and services for clinical trial data management, has received $2 million in Series B financing and expects to add about $1 million more to this round within the year. Specific investors were not disclosed. etrials, which had a 70 percent increase in 3Q 2004 revenues compared to 3Q 2003, will use the recent funds for partnerships and marketing. Contact Lorra Gosselin (919.653.3400).
On The Up
Inlet Technologies
Raleigh, NC
In today's increasingly digital world, high-definition (HD) technology is becoming a much more mainstream thought. More than 11 million U.S. homes have HD television sets, and over 70 percent of broadcasters in major TV markets offer HD programming. Analysts are predicting those numbers to grow significantly in the next five years.
One company at the crest of this HD wave is Raleigh-based Inlet Technologies (www.inlethd.com), a provider of professional encoding solutions for high-definition content creation and distribution. Founded in May 2003, the company has already established relationships with major companies such as Microsoft, Texas Instruments and Sonic Solutions - all of whom have recognized Inlet's early potential.
To serve the growing HD market, Inlet has developed several unique solutions. One core product is Inlet's patent-pending Optimized Compression, Encoding and Analysis (OCEAN) platform, which is a professional encoding platform optimized specifically for Windows Media 9 Series high-definition content creation and distribution. Inlet's other product is “Fathom” - a software and hardware tool powered by the OCEAN encoding platform that enables real-time Windows Media High-Definition Video content creation.
The company is currently focused on two key markets: post-production (editing, mastering, DVD authoring) and broadcast. Inlet officials said they are implementing a hybrid business model that includes creating hardware and software solutions that are sold through professional video reseller channels, as well as an OEM licensing model for the OCEAN platform.
Neal Page, Inlet's president and CEO, said Inlet has a competitive advantage with the first and only platform optimized for creating Windows Media High-Definition Video.
“As digital media moves from the PC to the living room, this advanced compression format is emerging as the industry standard for HD content,” said Page. “We enhance that format with proprietary analysis tools that enable us to make intelligent encoding decisions-in real time.”
Inlet received the 2004 People's Choice Award at CED's InfoTech 2004 conference on Oct. 8. The company edged out 26 other NC-based demo technologies for the top honor, as voted on by conference attendees. For more information on Inlet, contact Amber Link (919.260.4948).
New Developments
RTP - Credit Suisse First Boston (www.csfb.com), a global investment banking and financial services firm, is locating a Global Business Center in the RTP that will bring 400 new jobs and more than $100 million to the area. CSFB's Global Business Center will house global support staff, including operations and information technology positions with average salaries of nearly $72,000 a year. The company expects to hire a substantial majority of this workforce locally in North Carolina, providing entry level through senior positions in technology and securities operations. Contact Cooper Bryant (919.733.5612).
Clayton - Novo Nordisk (www.novonordisk-us.com), an international healthcare company headquartered in Denmark, is expanding its operations in Clayton, NC, creating 187 new jobs and $100 million investment to the area. The first phase of the facility expansion, scheduled for completion in 2006, will allow Novo Nordisk to more than double its insulin filling capabilities. Contact Lauren Mims (919.732.5612).
RTP - RTI International (www.rti.org) and the UNC Center for Health Promotion and Disease Prevention (www.hpdp.unc.edu) have received a three-year, $3 million grant from the Centers for Disease Control and Prevention (CDC) to establish the RTI-UNC Center of Excellence in Health Promotion Economics. The grant, one of two awarded nationally, will create a center to train health economists and public health practitioners in health economic methods. Contact Patrick Gibbons (919.541.6136).
RTP - A group of North Carolina business leaders are launching two organizations to support economic growth through innovation and technology commercialization. The first group, the North Carolina Innovation Foundation, will be a non-profit entity supporting research and education regarding innovation and entrepreneurial activity. The other group, the North Carolina Entrepreneurial Association (NCEA), will serve as a statewide non-partisan trade association for the North Carolina entrepreneurial community. NCEA plans to be active in the 2005 General Assembly. Contact Sam Taylor (919.676.1913).
Santa Monica, CA - The Milken Institute (www.milkeninstitute.org) estimates that North Carolina will increase its biotechnology-related workforce by nearly 7,000 over the next decade, according to a recent report on the U.S. biopharmaceutical industry. Milken forecasted that North Carolina will have over 32,000 life science workers 10 years now, up from its current total of approximately 25,000 employees. Contact Skip Rimer (310.570.4654).
Chapel Hill - UNC-Chapel Hill (www.unc.edu) has been ranked at the top of the Forbes' list of “America's Most Entrepreneurial Campuses.” Forbes based its rankings on data solicited by the Princeton Review from 357 top colleges and universities around the country, asking them a series of questions about the various ways they encourage and train undergraduate students to become successful. Contact Allison Adams (919.962.7235).
RTP - The Council for Entrepreneurial Development (www.cednc.org) has completed a survey of potential and current entrepreneurs, showing increased optimism about the prospects for starting or growing a business in the area. Sixty-four percent of respondents said that prospects for starting or growing a business in North Carolina were good or excellent, up from 36 percent who answered that way in a similar CED survey in January 2003. Contact Robert Albright (919.549.7500 x123).
In the Pipeline
Durham - Cree, Inc. (NASDAQ: CREE, www.cree.com), a provider of light emitting diode (LED) technology, has received a combined total of $4.2 million in funding for solid-state lighting research and development. The federal funding aims to reduce cost and energy consumption for general lighting. Contact Cynthia Merrell (919.313.5300).
RTP - MCNC Research & Development Institute (www.mcnc-rdi.org) has received approval from the U.S. Army Research Office to partner with N.C. Agricultural and Technical State University to conduct research on technological advancements in flexible displays for U.S. Army mobile electronics applications. The three-year, $1.5 million award establishes the Center of Excellence for Battlefield Capability Enhancements for environmentally stable flexible displays. Contact Scott Yates (919.248.1907).
Durham - KBI BioPharma, Inc. (www.kbibiopharma.com), a contract biopharmaceutical process development, production and technology company, will receive $500,000 under a Phase II SBIR grant from the National Science Foundation (NSF). The grant will support on-going development work applying KBI BioPharma's proprietary Centrifugal Bioreactor (CBR) technology to biopharmaceutical production. KBI will now focus on demonstrating high productivity of a number of specific monoclonal antibody and recombinant products in an applied development environment. Contact Timothy Albury (919.479.9898 x2006).
Pittsboro - Biolex, Inc. (www.biolex.com), a privately held protein therapeutics company, has expanded its collaboration with Centocor, Inc. a wholly owned subsidiary of Johnson & Johnson, to include two additional proteins. Biolex will carry out a commercial line creation project using its proprietary LEX System for the two proteins. Contact John Irick (919.542.9901).
RTP - The Council for Entrepreneurial Development (www.cednc.org) is now seeking applications from NC-based companies to present at CED's 22nd annual Venture conference. Venture 2005 will be held April 26-27, 2005, at a new venue - the world-renowned Pinehurst Resort and Country Club in Pinehurst, NC (host of the 2005 U.S. Open Golf Championship). Investors from across the country are encouraged to attend CED's annual Venture conference, which is the largest showcase of investment opportunities in the Southeast. Contact Andrea Cook (919.549.7500 x123).
6th Annual Southeastern BIO Investor Forum
(SEBIO 2004)
November 8-9
Doral Golf Resort & Spa
Miami, FL
www.sebio.org
CED's Venture 2005 Conference
April 26-27, 2005
Pinehurst Resort
Pinehurst, 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