Venture Update Vol. XII, #1, February 2008
Done Deals
Durham — Motricity (www.motricity.com), a provider of mobile content services and solutions, completed the previously announced acquisition of the mobile services business unit of InfoSpace, Inc. (NASDAQ: INSP) for $135 million. Additionally, the company announced the completion of $185 million in funding in a round led by Advanced Equities, Inc., Carl Icahn and New Enterprise Associates, Inc. Ryan Wuerch remains as chairman and CEO of Motricity while Steve Elfman, former executive vice president of InfoSpace's mobile services business unit, has been named president and chief operating officer. Contact Les A. Hamashima (919.287.7345).
Research Triangle Park — TransEnterix Inc., a Synecor-founded company created to pioneer and deliver novel, less-invasive tools and techniques for high-volume gastro-intestinal surgical procedures, raised its first institutional round of funding at $21 million. SV Life Sciences led the round, which included Parrish Capital Advisers, Synergy Life Science Partners and the Kenan-Flagler private equity fund.
Durham — CellzDirect, Inc. (www.cellzdirect.com), provider of hepatocyte-based cell products and related services for drug testing, was acquired by Invitrogen Corporation (NASDAQ:IVGN) in a cash transaction valued at approximately $57 million. Invitrogen is a Carlsbad, Calif.-based provider of essential life science technologies for research, production and diagnostics. Contact Scott Edelman (919.237.4500).
Wilmington — Inclinix, Inc. (www.inclinix.com), an enrollment contract research organization and provider of clinical trial recruitment solutions, closed $10 million in expansion funding from Frontier Capital. Inclinix will use the funds to improve its proprietary enrollment processes and technologies, add sales and marketing resources and service delivery. Contact J. Tobin Geatz (910.395.5674).
Cary — Precision Human Biolaboratory, developer of a unique proprietary technique for diagnosing and monitoring the therapy of clinical depression, received a $250,000 loan from the North Carolina Biotechnology Center for the commercialization and marketing of its product. The company raised an equal amount from KI Investment Holdings of San Diego to fulfill the NCBC requirement that loan recipients secure matching angel funding. Contact Dr. Yiwu He (919. 425.5826).
Research Triangle Park — NC IDEA (www.ncidea.org) announced the five recipients of the fall cycle of its bi-annual grant program. The recipients of $215,000 in grants are:
- Chiliport: The Cary-based developer of a real-time, on-demand audio portal that plays user-defined web-based information over a cell phone line.
- CorePrognostex:The Durham-based developer of a tissue acquisition protocol, a patented stereotactic tissue-holding device, and custom-designed kits that enable uniform collection of high-quality human tumor samples.
- CPS Biofuels (www.cpsbiofuels.com): The Cary-based developer of a system that converts waste byproducts into high-energy, safe oxygenates and fuel additives that improve vehicle performance and reduce particulate emissions.
- Filtara: The Cary-based developer of small, lightweight, long-lasting portable oxygen concentrator.
- Size Me Up (www.sizemeuponline.com): The Chapel Hill-based creator of a sizing tool for online retail shoppers. Size Me Up was featured in the January issue of Forbes magazine.
The spring 2008 cycle opened Friday, January 11 for “pre-proposal” submissions. Contact Lister Delgado (919.941.5600).
Chapel Hill - The University of North Carolina (www.unc.edu) awarded $4 million in research and development grants to researchers across the UNC system. The funding includes $3 million from the North Carolina General Assembly. Projects selected also secured more than $4.4 million in private and federal funding. Recipients include Appalachian State University, East Carolina University, NC A&T State University, NC Central University, NC State University, UNC-Chapel Hill, UNC-Charlotte, UNC-Greensboro, and UNC-Wilmington.
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On the Up
SciMetrika, LLC
Research Triangle Park, NC
Analyzing consumer health data is a critical component for pharma companies hoping to develop the next big therapeutic or diagnostic compound. It’s also important to health insurers trying to provide coverage and determine risk, and to government agencies looking to provide better services or undertake relevant research. Enter RTP-based SciMetrika, LLC (www.scimetrika.com), which helps its clients make sense of health data, devise appropriate programs to prevent or treat diseases, and evaluate the effectiveness of these programs. The company’s mission: providing scientific and technical consulting, along with logistical support that advances human health.
“We drive health research by helping our clients review and synthesize the research that has been conducted. We design studies, assist in data collection, and analyze and interpret health related data,” explains SciMetrika President Jean G. Orelien, DrPH, MStat. “We also assist our clients in implementing programs to prevent disease and in evaluating the effectiveness of these programs.”
Currently, clients have contracted with the company to conduct a literature review assessing the scientific evidence of the effectiveness of vitamin D in preventing cancer, to investigate the relationship between environmental exposure and morbidity, and to develop materials for training community health workers in diabetes prevention. SciMetrika’s largest client is the federal government.
Orelien co-founded the company in 2001 after realizing that “there were few companies with a focus on human health and that the market was large enough to support a new company such as ours.” The company’s operations were initially funded by $100,000 of his own money.
Despite the clear niche, it took two years to land the first deal. Until then, Orelien worked at RTI and Analytical Sciences (Constella Group) as a senior statistician and manager of statistical computing. In early 2004, the company finally won a contract large enough to allow him to make SciMetrika his only job.
Today, SciMetrika has 12 fulltime and three part-time employees and is growing at a rate of 100 percent per year. In 2007, the company’s revenues were more than $1 million. Orelien expects 2008’s revenues to be $4 million, and hopes to achieve at least $25 million in five years. But that’s not going to be easy for a company whose largest client is the federal government. “Our main concern is that spending for social and health-related programs has suffered due to problems facing our country right now such as the war in Iraq,” he admits.
Despite that, Orelien remains bullish. “As a small company, we have a lower cost structure compared to our competitors. At the same time, we have staff with the same expertise as these competitors. Despite the present climate of declining budget for our clients, we will continue to gain market share because of the value we offer.
“Our vision is to become a premier provider in services related to public and environmental health for the federal government,” he says. “In the near term, we plan to use our expertise with the federal government to market to the private sector, like the pharmaceutical industry or health insurance companies.” Contact Jean Orelien (919.544.8988).
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New Developments
Research Triangle Park - Digitalsmiths (www.digitalsmiths.com), a developer of technology that enables more efficient, higher quality delivery of video over the Internet, added two senior executives to its management team. William Stratton, former vice president of business development for Turner Broadcasting System, Inc. (TBS, Inc.) was named COO; and Petra Weishaupt-Smith, formerly CFO of A4 Health Systems, was named CFO. Contact Todd Beck (310.689.7363).
Cary - Bandwidth.com (www.bandwidth.com), a business communications provider for small- and medium-sized businesses, named Matthew Petzold as chief financial officer. Petzold served most recently as the CFO of Durham-based Motricity. Contact Scott Bornkessel (919.439.2610).
Chapel Hill - UNC-CH’s Kenan Flagler Business School (www.kenan-flagler.unc.edu) launched a private equity investment fund through its Center for Entrepreneurial Studies. Managed exclusively by Kenan-Flagler students, it has raised $1 million to date. The fund has a goal of raising $3 million and will remain open for additional investment until May 2008. Contact Randy Myer (919.843.6124).
McLean, Va. - The Southeast Venture Conference (www.seventure.org) named three Research Triangle-area companies to present at the conference on February 27 and 28. The companies are:
- clearTXT (www.cleartxt.com): The Morrisville-based provider of mobile communication and information delivery systems for the education market.
- Inlet Technologies (www.inlethd.com): The Raleigh-based developer of advanced encoding solutions for new media.
- Overture Networks (www.overturenetworks.com): The Morrisville-based developer of converged packet access platforms for Carrier Ethernet services
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In the Pipeline
Raleigh — Inlet Technologies (www.inlethd.com) recently released the latest version of Semaphore™, its quality control automation software. With the addition of MPEG-2 and Flash support, this release builds upon Semaphore’s solid foundation that already includes support for Windows Media, VC-1, and h.264 digital content. The company also will discuss "The State of IPTV" at the Internet Telephony Conference & Expo East 2008. Contact Neal Page (919.856.1080).
Research Triangle Park — RTI International (www.rti.org) received a three-year, $3-million grant from the Bill & Melinda Gates Foundation to support a new initiative for global health investment in collaboration with Commons Capital, a Boston-based socially responsible venture capital firm. RTI will provide technical and business assistance for Commons Capital’s portfolio companies to encourage them to develop devices, diagnostics, and information technology solutions appropriately tailored to meet the needs of underserved markets in developing countries. Contact Doris Rouse (919.541.6980).
Chapel Hill — Merscom (www.merscom.com) announced it will publish Buku Sudoku, the first Sudoku game for the Xbox LIVE Arcade system, this spring. The company also formed a partnership with Gabitasoft to co-develop and publish Gabitasoft's online console titles in 2008. The agreement currently involves an unannounced title on multiple platforms, including WiiWare and Xbox LIVE® Arcade, with the possibility of more games to be published within the coming year. Contact Kirk Owen (919.918.7741).
Cary — Brightdoor Systems (www.brightdoor.com), a creator of an integrated customer experience management and presentation solution for the real estate industry, announced its lead and content management tool, Bright*Base (formerly BrightDoor On*Demand). New features include widgets that summarize key information, synchronization with Microsoft Exchange/Outlook, and other add-ons. Contact Deven Spear (919.678.9940).
Cary - Trana Discovery (www.tranadiscovery.com), a drug discovery technology company, announced that its recently-developed HIV high throughput screening assay, which is designed to identify compounds that inhibit the use of transfer RNA (tRNA) by HIV, has the ability to select compounds with anti-HIV bioactivity. Because tRNA is essential for HIV replication, disruption of the virus’s ability to use tRNA appears to represent a novel target for anti-HIV therapy. Contact Karl von Gunten (919.931.1434).
Research Triangle Park - Virtual Heroes Inc. (www.virtualheroes.com), creator of collaborative interactive learning solutions (serious games) and virtual worlds for the federal systems, healthcare and commercial markets, created Ultimate Team Play for Hilton Garden Inn®, a mid-priced hotel brand with locations throughout North America and Europe. This is the first interactive training software to be used in the hospitality industry utilizing game-based technology. Contact Jerry Heneghan (919.293.0607).
Raleigh - FM:Systems (www.fmsystems.com), a leading provider of integrated workplace management systems and computer-aided facility management software, formed a new business partnership with Messrs ShelterCareFM Consult. Through the partnership, FM:Systems will provide the Nigerian-based company with software and training to ensure quality implementations of FM:Systems products in and around Nigeria. Contact Marty Chobot (919.790.5320)
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Mark Your Calendar!
Final Deadline for Application to Present at
CED’s Venture 2008
February 8th
CED is now accepting online applications from Southeast
and Mid-Atlantic companies interested in presenting at Venture
2008. Visit www.cednc.org/venture for more information.
Deadline for Pre-Proposals: NC IDEA Grants
February 8th
NC IDEA is seeking applications from NC entrepreneurs and
early-stage companies focused on information technology,
medical devices or material sciences. Initial “pre-proposal”
applications must be submitted online through the NC IDEA
website at www.ncidea.org/grants.htm
CED’s Globalization 2008 conference
February 14, 2008
Globalization 2008 explores strategies, benefits and connections
for a global marketplace. Held at the Embassy Suites Raleigh-Durham/Research
Triangle East.
Visit www.cednc.org/globalization for more information.
CED’s Biotech Forum: Venture Funding
February 18, 2008
A panel of experienced venture capitalists will cover a
spectrum of topics on venture capital financing for early
to late stage companies. Held at the North Carolina Biotechnology
Center. Visit www.cednc.org/btforum for more information.
CED’s MedTech Conference
March 6, 2008
Meet with leading investors, corporate partners and industry
entrepreneurs as they focus on the Southeast’s growing medical
device industry. Held at Duke Unviversity’s Fuqua School
of Business. Visit www.cednc.org/medtech
for more information.
CED’s Venture 2008 Conference
April 16-18, 2008
CED’s 25th year showcasing the Southeast and Mid-Atlantic’s
most dynamic and promising business opportunities for venture
investment. Held at the Washington Duke Inn & Golf Club,
Duke University. Visit www.cednc.org/venture for
more information.
Angel Investor Retreat
Thursday, April 17, 2008 (8:30 a.m. — 1 p.m.) at CED's 25th Annual Venture Conference
Click here for more information.
Venture Update is published by the
Council for Entrepreneurial Development (CED)
an entrepreneurial support organization located in the Research
Triangle Park, N.C.
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
email: news@cednc.org