Venture Update Vol. IX, #5, May 2005
Done Deals
RTP – ChannelAdvisor Corporation (www.channeladvisor.com), a provider of channel management solutions, has secured $18 million in additional funding, led by Advanced Technology Ventures, which joins Kodiak Venture Partners, Blue Sky Ventures, eBay, Tri-State Investment Group and Southern Capitol Ventures as investors. ChannelAdvisor will use the funding to accelerate global marketing and sales, speed the development its technology platform and seek opportunities for strategic acquisitions. Contact Ashley Jones (919.388.9405).
Durham – Integrian (www.integrian.com), a developer of mobile digital video technology for public safety, transportation and Federal Government markets, has secured $13 million in Series B funding. Boston-based Polaris Venture Partners led the financing round, with existing investors Intersouth Partners, Motorola Ventures and Wakefield Group participating, and The Dow Pension Plan also joining the investor group. Integrian will use the funds to expand product development, enter new global markets and ramp up sales initiatives. Contact Robin Potts (919.472.5022).
RTP – Gentris Corporation (www.gentris.com), a leader in the emerging field of applied clinical pharmacogenomic services and diagnostic product solutions, has closed a $5 million Series C round of funding from Mitsui & Co. (U.S.A.), Inc. The funds will allow Gentris to proceed with its plan to develop and distribute pharmacogenomic diagnostic testing kits to help hospitals and doctors determine how a patient will respond to a drug. Gentris’ recent funding was announced one month after the FDA issued guidance on pharmacogenomic data submissions – finding that pharmacogenomic tests can predict the possibility of side effects and determine appropriate dosage levels. Contact Deborah Oronzio (919.465.0100).
Charlotte – NuTech Solutions (www.nutechsolutions.com), a developer of computation software for advanced predictive analytics, has closed on $1.5 million in funding through a Private Placement of stock. The new group of investors includes Charlotte Angel Partners, Charleston Angel Partners, Columbia Angel Partners and First Rye. NuTech will primarily use the funds for sales and marketing investments and working capital. The company also plans to expand its position in the use of genetic algorithms and evolutionary strategies to model, simulate and optimize business scenarios. Contact Jennifer Koures (704.549.4480).
San Jose – Cisco Systems (www.cisco.com), which has offices in the RTP, has signed a definitive agreement to acquire privately-held Sipura Technology, Inc., for $68 million in cash and options. This deal represents Cisco's first acquisition for its Linksys division a provider of wireless and networking hardware for home, Small Office/Home Office and small business environments. The acquisition is subject to various standard closing conditions and is expected to close by July 2005. Contact Elizabeth McNichols (408.525.4434).
On The Up
TxFS, Inc.
Raleigh, NC
In recent years, the convergence of telecommunications, broadband and media has given consumers seemingly limitless options in choosing how they access, receive and pay for entertainment and other services. However, the confusion that results from this vast array of choices can often cause customers to lose trust in the online process.
Founded in 2004, Raleigh-based TxFS (www.txfs.com) was formed to simplify the process of seeking, selecting and buying premium broadband services.
Through the company’s “TxFlow Payment Network,” TxFS offers broadband providers and digital content vendors the technical and business solutions to increase sales and enhance consumers' online experience.
TxFS’s direct-to-bill payment network allows consumers to charge purchases of digital content – such as music, movies and games – to their Internet service provider bill. This provides consumers with a secure, one-click purchase option, drives more sales for merchants and offers ISPs a new value-added service and revenue stream. TxFS also benefits online merchants by providing simpler and more secure payment options for their customers.
TxFS president and CEO David Spitz is a technology entrepreneur and executive who, before TxFS, founded and sold two successful, venture-backed technology companies. With experience developing and managing new software technology, Spitz has assisted a variety of organizations in the media, biotechnology, retail and telecommunications industries.
“We are big believers in broadband and its almost limitless potential,” said Spitz. “In the coming years, more and more customers will consume entertainment and information services via broadband versus traditional media channels. Our TxFlow network will provide the capability for a safer and more efficient payment and distribution system, making it easier for consumers and commerce to connect to each other.”
TxFS was an early-stage presenter at CED’s 22nd annual Venture Conference in Pinehurst in April 2005. Contact David Spitz (919.414.8532).
New Developments
RTP – MCNC Ventures recently announced the restructuring and renaming of the company to North Carolina Innovative Development for Economic Advancement (NC IDEA). NC IDEA (www.ncidea.org) which will provide grants, loans and traditional venture capital to early-stage technology companies based in North Carolina has also formed a formed a strategic alliance with the Council for Entrepreneurial Development (www.cednc.org). The two groups will remain independent entities but will leverage a shared governance model to expand the innovation pipeline. Contact David Rizzo (919.248.1810).
RTP – Talecris Biotherapeutics (www.talecris.com) has launched its worldwide therapeutic proteins business in the Research Triangle Park. Talecris recently acquired the contributed assets of Bayer HealthCare, LLC, Biological Products Division’s plasma business. Private investment firms Cerberus Capital Management, L.P. of New York and Ampersand Ventures of Massachusetts provided the financial backing for Talecris. In addition to launching its worldwide therapeutic proteins business, Talecris has also signed an agreement with Ampersand to acquire the plasma fractionation and contract manufacturing facilities of New York-based Precision Pharma Services. Contact Lacy McMahon (919.316.6316).
Durham – Cree (NASDAQ: CREE, www.cree.com) and Raytheon have received a program award from the Defense Advanced Research Projects Agency (DARPA), under its Wide Bandgap Semiconductor Technology Initiative. The Cree-Raytheon team will be developing next generation gallium nitride (GaN) semiconductors for military and commercial products. The three-year, $26.9 million Cree-Raytheon program has a potential value of $59.4 million if all program options are exercised. Contact Raiford Garrabrant (919.313.5397).
RTP – The Research Triangle Regional Partnership (www.researchtriangle.org) and Council for Entrepreneurial Development (www.cednc.org) recently partnered with North Carolina State Treasurer Richard Moore to promote North Carolina's innovation economy to a group of Silicon Valley investors. During a special luncheon in April, several of North Carolina's government, non-profit and business leaders spoke to West Coast venture capitalists about the Tar Heel State's investment opportunities. Fifty-nine investors attended the lunch, including representatives from Burrill & Company, Institutional Venture Partners, Menlo Ventures, Prospect Venture Partners, Sand Hill Capital, Technology Crossover Ventures, USVP and many other active Silicon Valley firms. Contact Robert Albright (919.549.7500 x123).
In the Pipeline
RTP – Affinergy, Inc. (www.affinergy.com), a Duke University spinout with a proprietary site-specific biological delivery system, has received a $214,000 Phase 1 SBIR Grant from the National Institute of Arthritis and Musculoskeletal and Skin Diseases. The funding will help Affinergy accelerate activities to promote cell attachment to surfaces used in areas such as orthopedic implants, cartilage repair and growth factor delivery. The Phase 1 project will include both laboratory and preclinical studies. Affinergy plans to file for a Phase 2 award, pending successful completion of Phase 1. Contact Peyton Anderson (919.597.6227).
Morrisville – etrials Worldwide, Inc. (www.etrials.com) has signed a multi-year, subscription licensing agreement with Omnicare Clinical Research, a subsidiary of Omnicare, Inc. and provider of drug development services to pharmaceutical, biotechnology and medical device companies. Omnicare will allow its clients to use etrials’ eClinical platform for collecting, monitoring and analyzing clinical trial data. Contact Lorra Gosselin (919.653.3400).
Durham – Inspire Pharmaceuticals, Inc. (NASDAQ: ISPH, www.inspirepharm.com) has initiated a Phase 2 pilot clinical trial for diquafosol tetrasodium in corneal wound healing and is planning to initiate two Phase 2 pilot clinical trials for INS37217 Ophthalmic in macular edema. Inspire is discontinuing enrollment in a Phase 2 clinical trial for INS37217 Ophthalmic in retinal detachment, due to a previously disclosed slow enrollment rate. The company is investigating its drug candidate, diquafosol tetrasodium, for potential therapeutic benefit related to the healing of the corneal epithelium. Contact Jenny Kobin (919.941.9777 x219).
RTP – AlphaVax (www.alphavax.com) has received a new vaccine development grant from the National Institute of Allergy and Infectious Diseases (NIAID) of the National Institutes of Health (NIH), an agency of the U.S. Department of Health and Human Services. The new award provides a total of $6.5 million over a three-year period to support the first pre-clinical development and preparations for clinical stages of development of an influenza vaccine using the company’s new vaccine technology. The new grant is the seventh grant that AlphaVax has received from the NIH supporting vaccine programs in HIV, biodefense and SARS. Contact Peter Young (919.595.0400).
RTP – Metabolon, Inc. (www.metabolon.com), a leader in the application of metabolomics to discover novel biomarkers, has received a grant from the National Institute of Environmental Health Sciences (NIEHS) to study amyotrophic lateral sclerosis (ALS). Also known as Lou Gherig's Disease, ALS is a progressive neurodegenerative disease that affects nerve cells in the brain and spinal cord. This recent grant, which is part of the Small Business Innovation Research program administered by the National Institutes of Health, marks the third time Metabolon has received grant funding in the area of ALS. Contact John Ryals (919.572.1711).
Durham – Argos Therapeutics (www.argostherapeutics.com), formerly Merix Bioscience, has started a clinical trial using a novel personalized melanoma vaccine based on the company’s proprietary technology. The product is made from the patient’s own tumor RNA and immune cells and is the first of its kind to be developed for melanoma. Studies will test Argos’ RNA-loaded autologous dendritic cell vaccine among patients with Stage IV melanoma. Contact Bradd Pavur (919.870.5718).
RTP – Icoria Inc. (Nasdaq SC: ICOR, www.icoria.com) has entered into a research agreement with Vesta Therapeutics, Inc., to use Icoria’s metabolomics and gene expression technologies to develop biological profiles for Vesta’s adult human liver derived stem/progenitor cells and to aid in characterizing the cells’ ability to regenerate new liver tissue. Vesta will use the information generated by Icoria to optimize its selection of liver cells for transplantation and to guide clinical trials. Contact Brian Ritchie (212.845.4200).
Mark Your Calendar!
Biotech 2005 Conference
May 24-25, 2005
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/conferences/biotech/2005
CED’s Entrepreneurial Excellence Awards
June 15, 2005
American Tobacco Historic District
Durham, NC
www.cednc.org/awards
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