Venture
Update Vol. V, #8 October, 2001
Durham - MERIX Bioscience (www.merixbio.com), an immunotherapy company dedicated to treating cancer, infectious diseases and other immune disorders, closed on $40 million in its latest round of venture capital financing, a record for a Triangle biotechnology company. This round was completed after receiving an additional $19 million. The funding will be used to accelerate research for its planned cancer vaccine. Contact: John Irick (jirick@merixbio.com)
Raleigh - Salix Pharmaceuticals Ltd. (NASDAQ: SXLP), (www.salixltd.com), developer of treatments for gastrointestinal diseases, recently raised $28 million through the private placement of 1.96 million shares of common stock to selected institutional investors. Contact: Michael Freeman (919.862.1000)
RTP - ATHENIX CORP., an early stage company focused on gene discovery for plant biotechnology, secured $8 million in its first round of venture capital financing. Intersouth Partners of Durham, N.C., and Polaris Venture Partners of Waltham, Ma., led the investment, and Boston Millennia Partners of Boston also participated. President and Chief Executive Officer Mike Koziel said the company plans to use the money to set up its labs and begin developing patents. Contact: Nadine Carozzi (919.847.6219)
RTP - A. M. Pappas & Associates (www.ampappas.com) closed on a new $102 million venture capital fund focused on the life science sector. TechAMP II, LP will invest in emerging biopharmaceutical companies and in companies developing "platform" technologies within such areas as genomics, proteomics, computational chemistry, and bio-surgery. Contact: Ford Worthy (fworthy@ampappas.com)
Durham - Quintiles Transnational Corp. (www.quintiles.com), a publicly traded provider of pharmaceutical information, technology and services, and Japan's Medical Corporation LTA recently announced a scientific alliance to help pharmaceutical companies more efficiently conduct "two sites, one protocol" Phase I trials. The partnership will impact trials in Japan and at other sites in the United States and Europe. Contact: Jay Johnson (919.998.2066, jay.johnson@quintiles.com)
Raleigh - Peopleclick (www.peopleclick.com), a provider of strategic HR software services, has acquired Optimum, a provider of affirmative action planning and EEO data analytics. Peopleclick's main backers include Morgan Stanley, Lovett Miller, North Carolina Enterprise Fund, and Primus Venture Partners. Contact: Curt Witte (curt.witte@peopleclick.com)
Morrisville - FormScape Inc. (www.formscape.com), a management technology provider, recently announced it will license its software technologies to Prism Software Corp. through a worldwide agreement. Prism Software will incorporate FormScape's forms management solutions into its own PrintConsole Pro software. Terms of the deal were not disclosed. FormScape was recently named to the 2001 North Carolina Technology Fast 50 list. Contact: Eddie Riddell (919.657.1100)
Morrisville - BioMachines, Inc. (www.bio-machines.com) received a $149,972 Small Business Research Award from the North Carolina Biotechnology Center. The grant will enable the company to continue research on the BioBlox Microfluid Processor Chip (MPC) designed to aid human genome research and biopharmaceutical development. Contact: Rick Sheridan (919.459.6393)
Raleigh - EnSolve Biosystems (www.ensolve.com), a biotechnology company serving the marine market, was awarded a $100,000 Small Business Innovative Research (SBIR) grant from the U.S. Naval Sea Systems Command, to develop a fully automated biomechanical system for removal of oily wastes from ships' bilge water. Contact: Jason Caplan (jcaplan@ensolve.com)
Raleigh - Nitronex Corporation (www.nitronex.com), a semiconductor technology company, has named radio frequency semiconductor veteran John Brewer as vice president of product marketing, wireless applications. Brewer has more than 18 years experience with RF and semiconductor technologies. Contact: Bob Lynch (bob_lynch@nitronex.com)
Charlotte - Waveguide Solutions (www.waveguidesolutions.com), a spinout from the University of North Carolina at Charlotte, recently hired Scott Faris as Chief Executive Officer. Faris was previously a founding director and the chief operating officer of Ocean Optics. Waveguide is backed by Academy Funds, Southeast Interactive Technology Funds, and private investors. Contact: Pedram Leilabady (704.756.9045)
NetOctave
If you think traffic is more congested than ever on local highways, you should check out the Internet Highway. As a network security processor company, Morrisville-based NetOctave (www.netoctave.com) is attempting to make the "roads safer" and less congested on the Internet.
In a conversation with NetOctave CEO Rick Hegberg, Hegberg discussed how securing credit card transactions and Web sites require an incredible amount of bandwidth. Using mathematical algorithms, NetOctave has figured out how to secure the network with silicon chip sets and accompanying management software while saving bandwidth.
At the recent NetWorld+Interop in Atlanta, NetOctave released its newest product, NSP2000-SSL and NSP3000-IPsec Security Accelerator Board Product Families.
"Our new product allows original equipment manufacturers (OEMs) to deliver high-speed encrypted traffic with minimal design and engineering work," said Hegberg. "With the extensive growth in SSL and IPsec secured communications over the Internet, high-speed security acceleration hardware is required to handle increasing volumes of data without placing undue burdens on network equipment."
NetOctave was founded as a spin-off of Celotek Corporation in July 2000 and won CED's Spin-off of the Year Award in June 2001.
The company's funding history includes $15.6 million in a Series A round in October 2000, led by Intersouth Partners of Durham. Intel Capital of Cary, Kitty Hawk Capital of Charlotte, and Wakefield Group of Charlotte also participated in the round. NetOctave is currently raising its Series B round of funding.
Contact: Rick Hegberg (919.463.9903)
Lovett Miller & Co., Incorporated
Lovett Miller, based in Florida, recognizes the value of Triangle companies. Since its founding five years ago, the firm has invested nationally in technology, healthcare, consumer, and business services companies, including Raleigh-based Peopleclick, Inc. and Chapel Hill-based Southern Assisted Living.
The firm manages $175 million in committed capital and investments and typically invests $2 million to $10 million per company.
Eight of the companies receiving funds from Lovett and Miller have completed IPO's since 1991. Combined, they have raised $762 million in public equity and $1.0 billion in public debt.
"We are very enthusiastic about the community in the Research Triangle because the area represents such a strong source of entrepreneurial talent and venture capital resources," said Scott Miller, managing director. "We anticipate future participation in the growth of the area through additional investments."
Contact: Scott Miller (scott@lovettmiller.com); Kevin Ooley (kevin@lovettmiller.com)
InfoTech 2001
Wireless companies and panelists are poised to present at the Council for Entrepreneurial Development’s Research Triangle InfoTech 2001 in Chapel Hill, N.C. on October 30 and 31, 2001.
Sandeep Chennakeshu, CTO, Ericsson, and Ed Paradise, vice president and general manager, Mobile Wireless Group, Cisco Systems, Inc., will speak on a Next Generation Wireless Infrastructure panel.
Six of the 26 demo companies including GadgetSpace and Vedic Technologies, will also bring attention to next-generation wireless advancements that will accelerate the industry.
"Recently, the importance of the wireless industry to our economy and to our government has become more apparent than ever," said Percy Rajani, Vedic Technologies, Inc. "We are looking forward to releasing the world’s first PDA-based Internet telephone at InfoTech. Although telephone conversations are encrypted on our new product, encryption protocols will cause us to work more closely with the government to ensure security."
For more information or to register online, visit www.cednc.org/infotech/2001.
October 9, 2001
CED's Annual Meeting
The Carolina Club
Chapel Hill, NC
October 16-17, 2001
Third Annual SEBIO Conference
Sheraton Birmingham Hotel
Birmingham, AL
October 30-31, 2001
Research Triangle InfoTech 2001
The Carolina Club &
The Friday Center
Chapel Hill, NC
November 2, 2001
Southeast I-Deal Flow Forum
Georgia Center for Advanced Telecommunications
Technology
Atlanta, GA
January 25, 2002
Money & Markets 2002
The Sheraton Imperial
RTP, NC
April 30-May 1, 2002
Venture 2002
The Friday Center
Chapel Hill, NC
For more information, visit the CED Web site (www.cednc.org) or call 919.549.7500.
CED is a private non-profit organization supported, in part, by corporate contributions, including funding from Kauffman Center for Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation and Kilpatrick Stockton, L.L.P.
Research Triangle Venture Update is published by the Council for Entrepreneurial Development (CED), a non-profit organization located in Research Triangle Park, N.C.