Venture
Update Vol. VIII, #8, September 2004
Done Deals
Durham - Serenex, Inc. (www.serenex.com), has raised an additional $8 million in an extension of its series B preferred stock private placement to advance its discovery programs in oncology and inflammation. Durham-based Intersouth Partners led the round, which included strategic investor Takeda Research Investment and new investor Western Technology Investment. Existing investors Mediphase Venture Partners, Lilly BioVentures and Seaflower Ventures also participated in the financing. Contact Ian Howes (919.281.6031).
Durham - StrikeIron, Inc. (www.strikeiron.com), a provider of online services and software to simplify working with Web services, has closed a $2.6 million Series A round from The Aurora Funds of Durham. The company will use the funds to further develop its recently launched Web Services Business Network (WSBizNet) and to expand its marketing and sales activities. StrikeIron's WSBizNet is an online network of integrated services and graphical tools for working with and publishing Web services. Contact Richard Holcomb (919.405.7010).
RTP - Affinergy (www.affinergy.com), a biomaterials coatings company, has secured more than $2 million in its initial closing of its first round of capital to expand commercial applications and to fund pre-clinical studies. MCNC-RDI (Research & Development Institute) was the largest investor in the round and was joined by Trinity Healthcare, Charleston Angel Partners, and the Wilmington Investor Network. Affinergy also received a $150,000 Small Business Research Award loan from the N.C. Biotechnology Center. Contact Peyton Anderson (919.345.4732).
Durham - Smart Online (www.smartonline.com) has closed on $1.2 million led by Atlas Capital, bringing Smart Online's total to $4.7 million raised in 2004. Small businesses use Smart Online's portal applications to research and write business plans, incorporate, prepare personnel policies, manage inventories, apply for loans, draft leases for office space and equipment, and establish retirement plans. Contact Deb Lovig (919.765.5000).
RTP - SciQuest (www.sciquest.com) announced that Trinity Ventures has syndicated its investment in the company with participation from Durham-based Intersouth Partners and River Cities Capital Funds, which has an office in Raleigh. This announcement follows the closing of the acquisition by Trinity Ventures which resulted in SciQuest's return to private company status. Trinity Ventures will remain the lead investor in the company. Contact Suzanne Miglucci (919.659.2148).
Durham - PowerByHand (www.powerbyhand.com), a provider of mobile content and solutions, has acquired Germany-based mobile content portal Mobile2Day.de. This acquisition strengthens PowerByHand's presence in Europe by expanding the company's international sales efforts in the mobile content market. Mobile2Day.de provides over 20,000 applications from leading European developers to customers such as T-Online, Siemens, Toshiba and Tiscali. Contact Lynn Vitello (919.287.7345).
RTP - Ardent Pharmaceuticals (www.ardentpharma.com) is planning to merge with NY-based Enhance Biotech. Ardent has several drug candidates intended to treat moderate to severe pain, urinary incontinence, premature ejaculation, depression and cardio protection. Enhance is focused on drugs to treat male sexual dysfunction and dermatology. Contact Philip Wise (919.806.1806 x113).
RTP - Arius Pharmaceuticals (www.ariuspharma.com) has been acquired by NJ-based BioDelivery Sciences International (BDSI). Arius is a specialty pharmaceutical company with a portfolio of potential products focused on “acute” treatment opportunities for surgical and oncology patients. Arius' operations will remain based in the RTP. Contact Mark A. Sirgo (813.864.2557).
On The Up
Refense Technologies, Inc.
Raleigh, NC
Refense Technologies (www.refense.com) is serious about finding solutions to safely secure the sensitive data and network devices that are vital components of today's business world. In fact, the early-stage company has already developed a flagship product called Network Device Scanner that detects vulnerabilities in network devices such as routers, switches and wireless access points.
Network Device Scanner focuses on protecting networks, which serve as the backbone of any IT infrastructure. This product enables organizations to perform customized real time security scans, identify vulnerabilities and ensure network security. Several large enterprise organizations are currently using Refense's Network Device Scanner in evaluative stages.
To complement this product, Refense is planning a major announcement in mid-September to release the company's “RogueFinder” - a software module that can be added to the Network Device Scanner to help find unauthorized wireless access points.
RogueFinder is an enterprise scalable, automated, software-based solution that will help detect unauthorized, rogue wireless access points by leveraging the intelligence of the existing wired and wireless networks.Fabian Oliva, Angel J. Jones and Robert Hernandez co-founded the company in March 2003. All three Refense co-founders are currently taking CED's FastTrac Tech course. Refense will also showcase their unique technology as a demo participant at CED's InfoTech 2004 conference on Oct. 8 in the RTP.
With the momentum built so far and their strategic technology partnerships, Refense CEO Fabian Oliva said he is optimistic about the company's future.
“Our immediate goals include expanding the network of certified resellers to reach our target vertical markets,” he said. “We are also seeking a series A round to bring our product to market and to help with sales and marketing efforts.” Contact Fabian Oliva (919.539.0424).
New Developments
RTP - Golden Pine Ventures (www.goldenpineventures.com) has been established in the RTP, with a focus on early-stage biotechnology and biomedical ventures. The venture firm will join scientists and entrepreneurs in providing initial working capital, offering business and management expertise, and raising follow-on rounds of financing. Golden Pine, whose management and directors have a history of past successful ventures in biotech, will seek deals in the RTP and other select locations in the Southeast. Contact Christopher Meldrum (919.806.4395).
Durham - Cree, Inc. (www.cree.com), will expand its manufacturing and R&D operations in North Carolina with initial expansion activity beginning in Fall 2004 in the Research Triangle. Cree expects the project to include the expenditure of a minimum of $300 million in plant and equipment and the creation of at least 300 new jobs over the next 5 years. The state of North Carolina has offered Cree approximately $5.1 million in incentives related to job creation, capital expenditures and R&D activity. Contact Fran Barsky (919.313.5397).
Raleigh - Hutchison & Mason PLLC (www.hutchlaw.com), a regional law firm focused on technology and business law, has expanded its intellectual property legal services to include an emphasis on patent law. Allen Baum, a patent attorney and partner at Burns, Doane, Swecker & Mathis, L.L.P., has joined Hutchison & Mason as a partner. Patent attorneys Mary Grant and Joshua Elliott, as well as support personnel that worked with Baum at Burns, Doane, will also join Hutchison & Mason. Contact Amanda Johnson (919.829.4290).
Raleigh - River Cities Capital Funds (www.rccf.com) has hired Rurik (Rik) Vandevenne as an Associate. Vandevenne, who has an MBA from Duke, brings six years of experience from companies such as Scient and Accenture. With offices in Cincinnati and Raleigh, River Cities manages $300 million of venture capital in early to mid-stage companies. Contact Suzanne Miglucci (919.659.2148).
Durham - The Aurora Funds (www.aurorafunds.com), an early-stage venture capital firm, has named Mike Gorman as its Chief Financial Officer. Gorman has 20 years of financial, operational and business experience, including acquisitions, auditing, taxes, financial reporting, financial analysis, information systems and general management at several technology companies. Contact Shawn Ramsey-Kroboth (919.359.0947).
In the Pipeline
Chapel Hill - DarPharma (www.darpharma.com) has begun enrollment for a trial of DAR-0100 for the treatment of working memory and cognitive deficits associated with schizophrenia. This trial is the first-ever clinical trial of a dopamine D1 receptor full agonist in treating working memory deficits. The trial will evaluate the effect of DAR-0100 on brain activation using a technique called functional magnetic resonance imaging. Contact Michael Dombeck (919.403.4348).
RTP - Qualyst, Inc. (www.qualyst.com), has received a United States Patent for “B-CLEAR,” the company's flagship product, which is a proprietary in vitro sandwich-cultured hepatocyte system for the assessment of hepatobiliary disposition. Exclusively licensed from UNC-Chapel Hill, B-CLEAR can help profile drug compounds and their metabolites to determine the extent of biliary excretion. Contact Ian Mehr (919.313.6507).
RTP - Gentris Corporation (www.gentris.com) has signed a preferred vendor and master services agreement with Quintiles Japan. Gentris will provide Quintiles Japan with pharmacogenomic services related to testing and diagnostics for both research and clinical applications. Among the services provided will be DNA isolation and purification, DNA banking, clinical genotyping, protocol development, and regulatory consulting. The deal is Gentris' first international expansion. Contact Michael Murphy (919.465.0100).
RTP - Norak Biosciences, Inc. (www.norakbio.com), has signed a collaborative agreement with chemical company BASF to leverage Norak's Transfluor technology for the discovery of active ingredients against selected G protein-coupled receptor (GPCR) targets. Norak will screen a selected portion of its larger compound library against GPCR targets developed by BASF. Norak will also receive technology access and screening fees, as well as milestones and royalties. Contact Terry Willard (919.248.8000 x 8804).
RTP - Paradigm Genetics has changed its name to Icoria (www.icoria.com), representing a strategic change from a genomics company to a systems biology company looking to reach commercial markets in both healthcare and agriculture. Icoria's healthcare service offerings include gene expression analysis services, tissue analysis for toxicology testing, and biomarker-enabled drug discovery. The company's agricultural biotechnology efforts are focused on the discovery and development of proprietary molecules that can enhance plant productivity. Contact Brian Ritchie (212.845.4200).
RTP - Metabolon, Inc. (www.metabolon.com), has collaborated with Massachusetts General Hospital on a new biomarker study funded by the National Institute of Neurological Disorders and Stroke (NINDS). Metabolon and Massachusetts General Hospital researchers will work together on Metabolic Signatures in ALS, a study to identify unique metabolic signatures for ALS that will lead to a more rapid and accurate diagnostic test using biomarkers found in cerebrospinal fluid and blood. Contact Reid Tripp (919.572.1711x222).
Mark Your Calendar!
CED's InfoTech 2004 Conference
October 8, 2004
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/infotech
6th Annual Southeastern BIO Investor Forum
November 8-9
Doral Golf Resort & Spa
Miami, FL
www.sebio.org
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