Venture Update Vol IV, #4, April, 2000

• Done Deals
• New Developments
• Mark Your Calendar

Done Deals

Morrisville—Cronos Integrated Microsystems, Inc. (www.memsrus.com), a provider of optical MEMS (micro-electro-mechanical systems) devices to the telecommunications industry, signed a definitive agreement in April 2000 with JDS Uniphase Corporation to be acquired for $750 million payable in stock. An April closing is anticipated. Contact: Robert Bratter (919.380.1316).

Morrisville—Orologic, Inc. (www.oro-logic.com), a developer of semiconductors, formed an agreement in April 2000 to be acquired by Vitesse Semiconductor Corp. Under the agreement, Vitesse will acquire all of the equity interests of Orologic for $450 million in common stock. Contact: Raif O. Onvural (919.465.2100).

Durham—Cogent Neuroscience (www.cogentneuro.com), a developer of a genomics platform for the discovery of treatments for diseases of the brain, closed on $15 million venture financing in April 2000. Investors included Franklin Street Partners, Aurora Ventures, Cordova Technology Partners, Intersouth Partners, Kitty Hawk Capital, SR One, TriState Investment Group and The Wakefield Group. Contact: Max Wallace (919.688.7100).

Research Triangle Park—AuctionRover.com (www.auctionrover.com), an Internet company featuring multiple online auctions, signed an agreement to be purchased by California-based GoTo.com for 3.47 million in GoTo shares, valued at about $166 million at the time the deal was announced. The transaction is expected to close in April 2000. Contact: Scot Wingo (919.465.6937).

Research Triangle Park—BioStratum Inc. (www.biostratum.com), a biotechnology company focused on basal lamina research, closed on a $28 million round of private financing in March 2000. Investors included BankInvest, Equity Resources Group Inc., HealthCap, Mellon Holdings, Ltd. and MP Bio. Contact: Dr. Claus Kühl (919.572.6515).

Cary—Microcosm Technologies (www.memcad.com), a provider of micro-electro-mechanical systems (MEMS) development solutions, received $20 million in venture financing in March 2000. The funding was led by J&W Seligman and included investments from Gemini Investors, Kingdon Capital Management, Needham Capital, North Carolina Enterprise Corp. and Wakefield Group. Contact: Michael Jamiolkowski (919.854.7500).

Durham—Blue292 (www.blue292.com), a developer of a B2B Internet exchange for environmental, health and safety products and services, closed on Series A round of financing on March 14, 2000. Investors included Eno River Capital, The Sprout Group and the North Carolina Technological Development Authority. The company has commitments for a $15 million Series B round to be led by The Sprout Group. Contact: Susan K. Acker (919.806.2440).

Durham—Novalon Pharmaceutical Corporation (www.novalon.com), a biotechnology company focused on field of genomics-based drug discovery, formed an agreement to be purchased by Sweden's Karo Bio AB through a non-cash issue. Novalon shareholders will hold 20 percent of Karo Bio, potentially worth $106 million, once the acquisition is completed. Contact: Joe Smith (919.474.8888).

Durham—Pinpoint.com (www.pinpoint.com), a Web infrastructure provider, closed on $5 million of second round venture funding. The round was led by The Wakefield Group and Noro-Moseley Partners. Contact: Jud Bowman (919.251.7000).

Raleigh—Performaworks (www.performaworks.com), a developer of Web-based solutions for evaluating and developing company performance, closed on $6 million in venture capital funding from Pequot Private Equity Funds. Contact: Sandra M. Gault (919.836.9986).

Chapel Hill—TriVirix International, a contract manufacturer of medical devices, raised $3.5 million venture financing in March 2000. Investors included The Aurora Funds. Contact: Rich West (919.259.9000).

Raleigh—LipoMed, Inc. (www.lipoprofile.com), a medical technology and diagnostic testing and analytical company focusing on advanced medical applications of NMR spectroscopy, raised $5 million in venture capital in February 2000. Contact: Stephen K. Markham (919.212.1999).

Cary—ViOS, Inc. (www.vios.com), a developer of 3-D landscape for the Internet, closed on $5.2 million in first-round venture financing in March 2000. Southeast Interactive Technology Funds and Piedmont Ventures co-led the investment. Additional investors included VisionTech Partners and other angel investors. Contact: Robert Pickens (919.463.9093).

Durham—AlphaVax Inc. (www.alphavax.com), a developer of a proprietary vaccine vector technology, closed on $8.2 million in Series B venture financing in March 2000 from European investors. Contact: Peter Young (919.688.6902).

Raleigh—ProMedex, Inc. (www.promedex.net), a provider of disease management services to national and regional health plans and employers, signed an agreement to merge with InLight, Inc., a provider of patient-oriented, health information and connectivity solutions. The deal is valued at $110 million and is expected to be completed by April 21. Contact: Mimi Saffer (919.858.6000).

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New Developments
Durham—BuildNet, Inc. (www.buildnet.com), an e-business, technology and project management systems provider for the home building industry, filed a registration statement with the U.S. Securities and Exchange Commission in March 2000 for an initial public offering of common stock. The company plans to raise as much as $230 million in the initial offering. Contact: Keith Brown (919.941.6269).

Durham—Inspire Pharmaceuticals (www.inspirepharm.com), a company focused on the discovery and development of novel therapeutics based on mucosal hydration and epithelial cell biology, filed a registration statement with the U.S. Securities and Exchange Commission in February 2000 for an initial public offering of common stock. Bear, Stearns & Co. Inc. is lead-managing the offering, and Deutsche Banc Alex. Brown and U.S. Bancorp Piper Jaffray are co-managers for the offering. Contact: Roger A. Francis (919.941.9777).

Research Triangle Park—ICAgen, Inc. (www.icagen.com), a drug discovery focused on ion channel modulation, and Yamanouchi Pharmaceutical Co., Ltd., entered into a collaboration in March 2000 to develop novel products aimed at several central nervous system (CNS) disorders. Under the terms of the agreement, ICAgen will receive precommercialization payments including an up-front payment, research funding and milestones. In addition, ICAgen will receive royalties on products commercialized by Yamanouchi. Contact: Ezra Felker (919.941.5206).

Raleigh—MindLever.com (www.mindlever.com), a provider of global eLearning environments, has released an add-on meta-data generation software tool that is compliant with Microsoft Office 2000. The add-on can be downloaded from the Internet and is now available for use with Instructional Management System specifications. Contact: Bill Peyton (919.875.0033).

Raleigh—neoButler Inc. (www.neobutler.com), a developer of a horizontal (pan-Web) navigation service for the Internet, released its Webtop personalization solution service in April 2000. The service offers persistent Webtop personalization that delivers relevant content to Internet users and qualified visitors to Web sites. Contact: Susan Offer (919.226.4901).

Research Triangle Park—The Council for Entrepreneurial Development (www.cednc.org) has selected 34 companies to present at the Venture2000 conference on May 10-11. The companies are:

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Mark Your Calendar!

Venture 2000
May 10 - 11
UNC Friday Center, Chapel Hill

Holiday Golf Tournament
May 22, 2000
1:00 p.m.
Governor's Club, Chapel Hill

Biotech 2000
May 31, 2000
8:00 a.m. - 5:00 p.m.
The Friday Center at UNC-Chapel Hill

For more information about these events or to register, visit the CED Web site at www.cednc.org or call 919.549.7500.

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CED is a private non-profit organization supported, in part, by corporate contributions, including funding from Gray Ventures, Inc., Highwoods Properties Company, Inc. and Hutchison & Mason, PLLC .

Research Triangle Venture Update is published by the Council for Entrepreneurial Development (CED), a non-profit organization located in Research Triangle Park, N.C.
Editor Carolyn Foy, CED
P.O. Box 13353
RTP, NC 27709
Phone: 919.549.7500
Fax: 919.549.7405
Email: mcfoy@cednc.org