Venture Update Vol IV, #8, August/September, 2000
Done Deals
Chapel Hill—Extensibility, Inc. (www.extensibility.com), a developer of Extensible Markup Language (XML) technology, formed an agreement in August 2000 to be acquired by TIBCO Software Inc. (NASDAQ: TIBX), a provider of real-time infrastructure software for e-business. The deal is a stock transaction worth approximately $100 million. Contact: Peter de Leon (919.969.6500).
Morrisville—Industrial Microwave Systems (www.industrialmicrowaves.com), a developer of industrial heating and drying systems incorporating patented microwave technology for continuous flow manufacturing processes, closed on $7.5 million in Series C financing in August 2000. The round was led by Carousel Capital and included previous investors Martin Marietta Materials, the N.C. Technological Development Authority and TriState Investment Group. Contact: Jay Borkowski (919.990.9900).
Cary—A4 Health Systems (www.a4healthsystems.com), a provider of clinical information systems to the healthcare industry, received $25 million in private equity financing in August 2000. The investment was led by First Union Capital Partners, LLC, and included previous investors McConnell Venture Partners and Wakefield Group. Contact: Julia Moss Zarb (919.851.6177).
Raleigh—Alerts.com (www.alerts.com), a provider of intelligent change detection and notification services for high-traffic Web sites with dynamic content, raised $14 million in Series B venture funding in July 2000. ABS Ventures led the round, which also included previous investors The Aurora Funds and Intersouth Partners. Contact: Paula Dickerson (919.239.2200).
Morrisville—Inspire Pharmaceuticals, Inc. (www.inspirepharm.com), a developer of new drugs to treat diseases characterized by deficiencies in the body's innate defense mechanisms of mucosal hydration and mucociliary clearance, held its initial public offering of 5,500,000 shares of common stock at an initial public offering price of $12.00 per share on August 3, 2000. The shares will trade on the Nasdaq National Market under the symbol "ISPH". Deutsche Banc Alex. Brown, Chase H&Q and U.S. Bancorp Piper Jaffray acted as underwriters for the offering. Inspire has granted the underwriters an option to purchase up to an additional 825,000 shares of common stock to cover over-allotments, if any. Contact: Roger A. Francis (919.941.9777).
Research Triangle Park—Porivo Technologies, Inc. (www.porivo.com), a developer of software for distributed peer-to-peer computing, raised $2 million in first round venture financing in August 2000. Investors included The Aurora Funds, Inc. and a private individual. Contact: Sam Kirby (919.806.0566).
Research Triangle Park—Inceutica.com, Inc. (www.inceutica.com), a developer of global B2B e-marketplaces, closed on $4 million in Series A financing in August 2000 from the Redleaf Group, Inc. Contact: Kris Ford (919.271.1609).
Raleigh—Peopleclick.com (www.peopleclick.com), a provider of online human capital management tools for human resource professionals, received $16 million in venture capital financing in June 2000. Morgan Stanley Dean Witter Venture Partners led the round, which included previous investors and company executives. Contact: Thomas Tisdale (919.645.2800).
Charlotte—Digital Optics Corporation (www.digitaloptics.com), a manufacturer of wafer-based micro-optics and integrated micro-optical systems PHOTONIC CHIPSTM, raised $35 million in venture funding in August 2000. J. & W. Seligman & Company led the round, which included Agilent Technologies, RF Micro Devices, Carolinas Capital, Intel Capital, Bank of America Securities and Chase H&Q. Contact: Kara Sproles Mock (803.254.8158).
Research Triangle Park—OptXCon, Inc. (www.optxcon.com), a developer of optical cross connect technologies, received $1 million in seed funding in July 2000. The investor was ADVA AG Optical Networking (Neuer Markt: ADV), a developer of optical networking solutions for metro area service providers and enterprises. Contact: Brandon Bryce (919.313.4555).
Durham—AlphaVax Inc. (www.alphavax.com), a developer of a proprietary vaccine vector technology for more effective vaccines, closed on $11 million in third round financing from European and U.S. investors in August 2000. Contact: Peter F. Young (919.688.6902).Chapel Hill—Zoom Culture (www.zoomculture.com), a provider of Internet video content, secured a $5.4 million first round venture funding in July 2000. The round was lead by Intersouth Partners and included Tri-State Investment Group, Dean & Co., and Cordova Ventures. Contact: Nathan Wieler (919.960.9100).
Raleigh—Interadnet, Inc. (www.interadnet.com), a provider of ad-serving technology and advertising services for Internet advertising campaigns, closed on $15 million in second round venture financing in July 2000. The financing was led by LiveWire Labs and included XL Ventures, The Aurora Funds, TriState Investment Group III and Naviant. Contact Felicia Ramsey (919.859.4080).
Research Triangle Park—Celotek Corporation (www.celotek.com), a developer of high-performance Asynchronous Transfer Mode (ATM) network security appliances used to secure voice, video and data transmissions over high-speed public and private wide area networks, entered an agreement in July 2000 to be acquired by Cylink Corporation (NASDAQ: CYLK). The agreement calls for Cylink to issue $21.5 million in common stock. Contact: Cheryl Joyce (919.462.1900).
Raleigh—Total Sports, Inc (www.totalsports.com), a developer of a sports Internet site, has formed and agreement in July 2000 to be acquired by Quokka Sports, Inc. (Nasdaq: QKKA), a provider of sports entertainment for the digital worldTM. Under the terms of the agreement, Quokka Sports will issue approximately 15 million shares of common stock in exchange for ownership of the privately-held Total Sports Inc., valuing the acquisition at approximately $130 million. The transaction is currently expected to close in October 2000, subject to various conditions including approval by Quokka Sports and Total Sports stockholders.
New Developments
Research Triangle Park—The Council for Entrepreneurial Development (www.cednc.org), has selected 27 companies to demo at InfoTech 2000, the Southeast's premier Information Technology industry conference, on October 27, 2000 at the Friday Center in Chapel Hill. For a list of the demo companies and more informtion on the confernce, visit www.cednc.org/infotech/2000. Contact: Evelyn Ramirez (919.549.7500).
Research Triangle Park—North Carolina companies Amplistar, BioStratum, Norak Biosciences, Targacept. TriVirix Intl., Bloodhound Software, Sci Matrix, Sicel Technologies are among 24 southeastern companies selected to present at the 2nd Southeastern BIO Investors Forum to be held in Chapel Hill on Oct 2-3. (www.sebio.org). Contact: Jennifer Tilden (919.549.7500).
On The Up
VIOS
Cary-based ViOS, Inc. is creating the first three-dimensional client-hosted interface and leasing infrastructure for the entire World Wide Web.
The patented ViOS application, developed by founder and chief creative officer, Dr. Julian Lombardi, takes the Internet from a flat interface to a multidimensional virtual environment that resembles the animated landscapes of computer games. With ViOS software, Web users will be able navigate the Internet in a clearly organized, intuitive and engaging manner. In this 3-D "ViOSpace," companies can purchase real estate to place a building representing a Web site clustered among others of similar interests. The idea is to make Web browsing a visual-rather than URL-text-based-experience for the user.
"We're creating an entirely new way to experience the Internet-one that allows people to locate information by traveling through a three-dimensional landscape, just as they do in the real world," says Robert Pickens, CEO of ViOS. "We believe the Internet isn't flat - that it goes far beyond pages and text. And we're developing an interface to demonstrate this vision."
ViOS plans to distribute millions of copies of its free software to consumers and will lease virtual real estate to companies in the 3-D landscape in the fourth quarter of this year.
Founded in September 1999, ViOS is a privately held, venture-backed company headquartered in Cary. In March of this year, it closed on $5.2 million in first-round venture financing. Investors include Southeast Interactive Technology Funds, Piedmont Venture Partners and VisionTech Partners.
Corporate Partnering 2000
September 12th, 1:30 - 5:00 p.m.
Sheraton Imperial Hotel, RTP
Venture Capital Series 2000
Finding Money For Your Business
September 21st, 12:30 - 5:00 p.m.
Marriott at Research Triangle Park
Streak Luncheon
September 25th, Noon - 1:30 p.m.
Marriott at Research Triangle Park
Southeastern BIO Investors Forum
October 2-3, 2000
The Friday Center, Chapel Hill, NC
Research Triangle InfoTech 2000
October 27th, 7:30 a.m. - 6:00 p.m.
The Friday Center, Chapel Hill, North Carolina
For more information about these events or to register, visit the CED Web site at www.cednc.org or call 919.549.7500.
CED is a private non-profit organization supported, in part, by corporate contributions, including funding from Triangle Business Journal and Wyrick Robbins Yates & Ponton, LLP.
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