Venture
Update Vol IV, #2, February, 2000
Durham—BuildNet Inc. (www.builldnet.com), an e-business, technology, and project management systems provider for the home building industry, closed on $104.7 million for a third round of venture financing in January 2000. Investors included BancBoston Ventures, Barnard & Co., Global Technology Investors Fund, J. & W. Seligman & Co. Incorporated, John Hancock Global Technology Fund, Kohler, Lafarge Corp., Owens Corning and SGC Partners II, and Southeast Interactive Technology Funds. Contact: Keith Brown (919.941.6269).
Durham—Saffron Technology, Inc. (www.saffrontech.com), a developer of proprietary personalized database matching technology, closed a $2.3 million convertible note bridge financing in Jauary 2000. Investors included Aurora Funds and private investors. Contact: Clay Dunnagan (919.806.8181).
Durham—Environmental Connections (www.ecilink.com), a provider of information on suppliers for environmental testing, raised $2 million in venture financing from Eno River Capital in January 2000. Contact: Susan Acker (919.806.2440).
Charlotte—Longleaf Venture Fund, an early stage venture capital fund, closed on $14 million for its first fund. Longleaf will focus on investing in emerging-stage companies located in North Carolina's Charlotte and Triad (Winston-Salem, Greensboro and High Point) areas. Contact: John Ciannamea (919.424.3777 ext. 276)
Research Triangle Park—Xanthon Inc., (www.xanthoninc.com), a genomics company with patented molecular diagnostic technology for the direct analysis of DNA and RNA, raised $4 million in debt financing from Oxford Venture Finance in January 2000. Contact: Peter Heath (919.572.0707).
Research Triangle Park—Paradigm Genetics, Inc. (www.paradigmgenetics.com), a developer of a proprietary functional genomics system that integrates gene discovery, gene function determination and gene use identification, signed a broad collaboration agreement with Monsanto Company in January 2000. Under the terms of the agreement, Paradigm will develop functional genomics data by analyzing the product of Monsanto's gene sequencing, bioinformatics and functional genomics research, creating a product discovery platform for commercialization. Under terms of the agreement, Paradigm will receive $55 million in committed payments. Contact: John Ryals (919.544.5578).
Chapel Hill—Intecardia (www.intecardia.com), a cardiology practice development company, secured and made an initial draw on $16.5 million in new senior credit facilities with Bank of America Commercial Finance in January 2000. Contact: Timothy Trost (919.403.3632)
New Developments
Morrisville—Home Director (www.ibm.com/homedirector),
the home networking division of IBM, will spin off as
a separate, private company called Home Director Inc.
The company will be funded by venture capital from
Spencer Trask Intellectual Capital Co., which will be
the majority shareholder. IBM will keep a minority
stake in the company. Contact: Mary Walker
(800.426.7144).
Raleigh—ProMedex, a provider of Internet-based preventative care programs for health maintenance organizations, has formed an agreement with 24/7 Media potentially worth more than $23 million in annual revenue for three years. Contact: Pieter Muntendam (919.781.4533).
Morrisville—AuctionRover.com (www.auctionrover.com), a has formed a partnership with Go2Net. Und er the terms of the agreement, AuctionRover.com will serve as the exclusive auction search engine for Go2Net's MetaCrawler metasearch service. Contact: Scot Wingo (919.465.6937).
Cary—HiddenMind Technology, Inc. (www.hiddenmind.com), a developer of wireless data applications software, has formed an agreement with Glenayre Technologies Inc. to offer two-way instant messaging and advanced interactive wireless messaging products to businesses and consumers. Under the terms of the agreement, the two companies will link HiddenMind's wireless communications platform, HiddenMessengerTM, and other HiddenMind applications, with the full complement of Solutions for an @ctive World now being offered and developed by Glenayre. Contact: Ken Tyra (919.829.1933).
Chapel Hill—Extensibility, Inc. (www.extensibility.com), a provider of enabling technologies for XML schemas, has formed a cooperative agreement with Commerce One, Inc. to integrate, package and market Extensibility's XML schema design and management solution with Commerce One's MarketSite Portal Solution 3.0. Contact: Reid Conrad (919.969.6500).
Raleigh—Summus, Ltd. (www.summus.com), a digital media technology company that has developed compression solutions for encoding, managing and distributing digital media content, has formed a strategic licensing agreement with BuyItNow.com, an Internet retailer. Under terms of the agreement, BuyItNow.com will incorporate Summus' MaxxShowTM, a media encapsulation tool, into its Electronic Web PlazaTM. Contact: Janie Reed (919.807.5634).
Research Triangle Park—The Council for Entrepreneurial Development (www.cednc.org) recently hosted the 16th Annual Conference on Entrepreneurship. Highlights included Bob Young, Red Hat CEO receiving Business Leader magazine's "Entrepreneur of the Year" award and keynote speaker Jamie O'Neill , co-founder of Austin-based Garden.com. Contact: Arlinda Taylor (919.549.7500 ext. 127).
Research Triangle Park—The Council for Entrepreneurial Development (www.cednc.org) recently selected its first round of presenters for Venture 2000, CED's 17th annual venture capital conference. This year's presenters include: Alerts.com, AuctionRover.com, Cogent Neuroscience, Extensibility, InterAdNet, neoButler, and ViOS. CED is still accepting applications to present. Past presenters from diverse industries such as Internet, biotechnology, software manufacturing, pharmaceuticals and healthcare have raised more than $600 million. Applications are due February 25, 2000. To apply, visit the CED Web site or call Cathy Trask at 919.549.7500 ext. 121.
On The
Up
EXTENSIBILITY
Have you ever stopped to wonder how e-commerce and
EDI actually work? For instance, how does GM's
e-procurement system work with those of its
suppliers? XML (Extensible Markup Language) is the
answer - and Chapel Hill-based Extensibility is the
early leader in the race to provide this e-business
infrastructure solution.
"XML schema are the intellectual property of ecommerce," notes co-founder and CEO Reid Conrad.
The company's solutions, XML AuthorityTM and XMLschema.comTM, provides total solutions for the conversion, design and management of XML schemas. These solutions enable companies to build frameworks, or schemas, that translates their unique terminology into XML. Companies then use XML and the Web to do business with their trading partners. Extensibility recently launched XMLschema.com an on-line conversion and validation service for XML and unveiled a new version of the flagship XML Authority.
"Throughout 1999, we quietly built a solid foundation of technology and strategic partners," Conrad says. It has enlisted partners around the world, most notably joint XML development and marketing initiatives with Software AG in Germany and Commerce One in California. "As we enter 2000, Extensibility will begin a rapid growth stage of resources, new technologies and strategic partners. We expect to add over a dozen people this quarter alone."
Extensibility is backed by $1.7 million from Intersouth Partners, the region's largest venture capital firm. Conrad expects to close on an additional $5-10 million in a second round of financing sometime in the second quarter.
The company, which recently opened an office in downtown Chapel Hill, was founded in 1998 by Conrad and Lee Buck, CTO. "We're thrilled to be here," Conrad notes. "The accessibility to the venture community and university resources is a definite advantage."
Triangle Venture Breakfast Series
February 16, 2000
7:30 - 9:00 a.m.
First Flight Venture Center, RTP
STREAK Luncheon
February 24, 2000
Noon - 1:30 p.m.
Holiday Inn, RTP
Initial
Public Offerings 2000
March 7, 2000
Noon - 6:00 p.m.
Marriott, RTP
Venture Capital Investment
Competition
March 23 - 25, 2000
Kenan Flagler Business School
Venture
2000
May 10 - 11
UNC Friday Center, 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.
CED is a private non-profit organization supported, in part, by corporate contributions, including funding from Atcom Business Telephone Systems, Carolina Power & Light and Capitol Broadcasting Company, Inc.
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