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Latest Deals: 08-15 April 2003

The AltAssets weekly round up of deals done across the world. This week there were 122 active investors in 51 deals and two exits across ten sectors, compared to 109 active investors in 48 deals and one exit the previous week…

Active investors this week

Europe & Israel

Internet

Exit:

Interregnum exits uDate.com
Interregnum has realised its investment in uDate.com, a Derby, UK-based company that provides an online dating service. The company has been acquired by USA Interactive and, as a result, Interregnum has received a small residual equity stake in USA Interactive. The terms of the transaction were not disclosed.

Food & Beverage

Investment:

Barclays Private Equity takes stake in Italian food company
Barclays Private Equity and Italian private equity firm Arca have taken a 33 per cent stake in Marr, an Italian company that distributes meat products. The private equity firms acquired the business for E100m, which Marr plans to use for acquisitions over the next three years. The transaction was completed without the use of any debt, although this may be used later on when Marr begins to make its acquisitions.

Media

Investment:

Viventures invests in Terraplay
Viventures has invested in a round of venture capital financing for Terraplay, a Sweden-based company that develops online gaming technology. The amount of capital invested in the company totalled E3.5m, which will enable Terraplay to exploit market opportunities. Other investors in this round included Ericsson Business Innovation and IT Provider.

Healthcare & Life Sciences

Investment:

Isis completes buy-out of CMG
Isis Equity Partners has completed the buy-out of Care Management Group. Established in 1996, the company provides specialist residential care services for individuals with learning disabilities and associated mental health needs. ISIS has committed £30m to the buy-out as well as additional funds for the ongoing growth plans of the company. CMG has already begun its growth strategy with the acquisition of two properties in the Surrey area, which will be developed for clients with challenging behaviour.

University of Cambridge Challenge Fund invests in spin-out
The University of Cambridge Challenge Fund has invested in one of the University's spin-out companies. Vivamer, a Cambridge, UK-based developer of drug delivery technology raised £110,000 in seed financing from the fund, which will be used to demonstrate Vivamer's technology in the areas of diagnostic imaging and drug delivery for anti-cancer applications. The University of Cambridge Challenge Fund has taken a 14 per cent equity stake in the new company and one of its fund managers Bill Mathews has been appointed to the company's board.

Quester Capital Management provides capital to Oxxon
Quester Capital Management has provided funding for Oxxon Pharmaccines, an Oxford, UK-based biotechnology company. Oxxon focuses on developing immunotherapeutics, specifically therapeutic vaccines. The company secured £15m in this round, which it intends to use to drive forward its clinical programmes in the areas of chronic infectious diseases and cancer. A group of investors joined in the round. Led by Quester, the group also included Isis Capital, NIF Ventures, MVM, Neomed Innovation and The Isis College Fund.

Technology

Investment:

3i invests in Kamelian
Global private equity firm 3i has joined in a round of equity financing for Kamelian, an Oxford, UK-based start-up that develops optical components. The company raised £4.5m in this round, which it will use to keep the company going until it breaks even. A number of other investors were also included, such as Goldman Sachs Capital Partners, Lightspeed Venture Partners and strategic investor Hoya Holdings.

Mission Ventures funds TransChip
Californian private equity firm Mission Ventures has provided equity financing to an Israeli company that develops single chip camera solutions for mobile phones and other devices. The $5.5m that the company raised will support its product development, marketing and sales initiatives. The round also consisted of a number of private individuals.

Ventech invests in French technology company
Ventech has committed funds to a round of financing for Ekinops, which develops optical aggregation and transport sub-systems for metropolitan and long-haul networks. Based in Paris, France, the company raised E6m in this first round of funding. Ventech, Auriga Partners and Siparex participated. The proceeds from the round will be used for product development, according to VentureWire.

Manufacturing

Investment:

Catapult funds Applied Multilayers
Catapult Venture Managers has backed a round of financing for Applied Multilayers, a Coalville, UK-based company that manufactures optical coating equipment for applications in precision optics, telecommunications and ophthalmic optics markets. The company secured £250,000 from Catapult, which will bring its total funding for this round to £450,000 with the NatWest Bank and management making up the difference.

BayTech Venture Capital takes stake in heating component manufacturer
Munich-based venture capital firm BayTech Venture Capital has invested money in PMC Porous Media Combustion in return for an equity stake. PMC is a German company, located in Erlangen, which develops and markets components and sub-systems for economical and environmentally friendly gas and oil burners in heating systems. The company secured E1.2m from BayTech and Vattenfall Europe Venture. The capital raised in this round will help to finalise product development and to set up production.

Lloyds TSB Commercial Finance backs Birkby's buy-out
Lloyds TSB Commercial Finance has backed the buy-out of Birkby's Plastics, a UK company that focuses on plastics manufacturing. The company concentrates primarily on the design, manufacture and assembly of plastic components for the automotive industries. The terms of the transaction were not disclosed.

North America

Technology

Investments:

Sequoia Capital funds Actona Technologies
Sequoia Capital has invested money in a round of venture capital financing for Actona Technologies, a provider of solutions that enables storage centralisation for global enterprises. The company, which is headquartered in Los Gatos, California, has received $4m in this tranche, bringing the total raised for the round to $11m. The funds will be used to improve sales and marketing and to launch its product range. Evergreen Partners and the Fantine Group also participated in this round.

Newlight Associates invests in AuthenTec
Newlight Associates has committed capital to AuthenTec's third round of funding, which had already raised $12.1m earlier this year. The additional funding totalled $2.9m and brings the round total to $15m, the proceeds of which will be used for product development and sales and marketing. Firsthand Capital Management and private investors also participated in the financing.

Globespan Capital Partners invests in Millenial Net
Globespan Capital Partners, formerly Jafco Ventures, has joined in a round of financing for Cambridge, Massachusetts-based Millenial Net. The company develops wireless sensor networking devices called i-Beans. This series A round has raised $6m from Globespan, Kodiak Venture Partners and General Catalyst Partners. Millenial Net will use the new capital to develop its i-Bean technology and to expand its sales and marketing activities.

Navigator commits to Aircuity's latest funding
Navigator Technology Ventures has invested in a round of venture capital financing for Aircuity. The company is located in Newton, Massachusetts, where it provides technology to evaluate the comfort, health and energy-efficiency of a building's indoor environment. The series B round totalled $4.3m and included IDP Investments and the Venture Capital Fund of New England. Proceeds from the round will go towards product development and sales and marketing efforts.

Arlington backs recap of ITS Services
Arlington Capital Partners has backed the recapitalisation of ITS Services, a Springfield, Virginia-based company that provides information technology solutions to federal government agencies. The company, which was founded in 1991, specialises in three core areas - enterprise architecture, network services and operations and software and applications development. The transaction details were not disclosed but the equity invested will enable the company to grow organically and to conduct strategic acquisitions.

BCE Capital invests in Capella Photonics
Bell Canada Enterprises Capital has invested in a $7m round of venture financing for Capella Photonics, a provider of reconfigurable optical subsystems. The series B funding was secured from BCE, Bay Partners and Vanguard Ventures, as well as various private investors and management. BCE Capital has also announced that it is to join Capella's board of directors.

Index Ventures in funding for FilesX
Index Ventures has committed funds to a round of financing for FilesX, a Southborough, Massachusetts-based company that provides data recovery solutions. The round closed on $7.5m and the new funds will be used to expand sales and marketing as it moves its product towards general availability. Index Ventures was joined in the financing by Benchmark Capital and Genesis Partners.

Crossbow Ventures extends financing for ScriptRx
Crossbow Ventures has extended its investment in ScriptRx, a West Palm Beach, Florida-based company that provides interactive healthcare information systems. ScriptRx received $1m in the first closing of its ongoing series C round, which follows a $2m that Crossbow provided in June 2002. The company will use the financing to complete existing orders and add staff.

Skyline Ventures invests in NimbleGen
Skyline Ventures is among a group of investors that have committed capital to a round of equity financing for NimbleGen Systems, a Madison, Wisconsin-based company that provides microarray products and services for genomics experiments. The company secured $12.5m in this round from Skyline, ITX International Equity, Venture Investors, Baird Venture Partners and Tactics II Investments, as well as the State of Wisconsin Investment Board and The Wisconsin Alumni Research Foundation. NimbleGen has now raised a total of $32.5m in venture financing.

Telecommunications

Investment:

Centennial and Columbia invest in Florida Digital
Centennial Ventures and Columbia Capital have both committed capital to a $20m round of institutional financing for Florida Digital Network, an Orlando-based company that provides telecommunications services. The capital will be used to help the company in its acquisition of Mpower Communications, a publicly traded company that is consolidating its telephone and data services. MC Ventures was the lead investor in this round for Florida Digital.

Healthcare & Life Sciences

Investments:

Apjohn Group leads round for Afmedica
Apjohn Group has led a number of other venture capital firms in a round of equity financing for a Kalamazoo, Michigan-based start-up company. Afmedica has created a drug-coated device that helps prevent unwanted scar tissue. The company has secured $1.3m from Apjohn, Tgap Venture Capital Fund, Palmero Group, Tara Ventures and a number of private investors. The new capital will be used to develop its product range and conduct early pre-clinical trials.

The Wellcome Trust invests in Neothermia
The Wellcome Trust has invested in Neothermia, a Natick, Massachusetts-based developer of systems for diagnostic and therapeutic applications in cancer. The company raised $13.1m in this series D round financing, which it will use for the sales and marketing of its flagship breast biopsy product, as well as to continued research and development to evaluate systems for the diagnosis of other types of cancer. The Wellcome Trust led the financing with a $4m investment. Other investors in the round included ABS Ventures, MedVenture Associates, Morgenthaler Partners, Origin Partners, Sapient Capital, and Saratoga Ventures.

Sprout leads round for Vasca
The Sprout Group has led a $6.1m round of venture capital funding for Vasca, a medical device company situated in Tewkesbury, Massachusetts. The company develops access technologies that help to improve the quality of patient care. The round included a number of return investors, such as The Crossroads Group, Atlas Venture, MVM, Pacific Venture Group, The Carlyle Group and Weiss, Peck & Greer Venture Partners.

Psilos Group Partners commits to Cohesive
Psilos Group Partners has committed capital to the initial close of a series B round of institutional equity financing for Cohesive Technologies. The company is headquartered in Franklin, Massachusetts, where it develops and manufactures liquid chromatography systems and chemistries for the pharmaceutical, biotechnology and clinical diagnostic marketplaces. Cohesive secured $8.5m in this round from Psilos Group and Oxford Bioscience Partners, as well as strategic investor Mitsubishi Corporation.

HBM Bioventures invests in CytoKinetics
HBM Bioventures is among a group of investors that have committed capital to Cytokinetics, a San Francisco-based biopharmaceutical company. The company has raised $17m in fifth round funding from CSFB Private Equity, Alta Partners and HBM BioVentures, according to Private Equity Week.

Financial Services

Investments:

Financial Technology Ventures provides capital to Mavent
US private equity firm Financial Technology Ventures has provided $6m in a second round of venture financing for Mavent, an Irvine, California-based provider of mortgage lending compliance services. The company will use the $6m to strengthen its balance sheet. New investor Financial Technology Ventures has the option to invest an additional $4m in the next round. Mavent previously raised $1m from private individuals.

ChrysCapital invests in TechTeam
ChrysCapital has invested in TechTeam Global, a Southfield, Michigan-based company that provides information technology and business process outsourcing support services. TechTeam raised $5m in this round with ChrysCapital as the sole investor. The proceeds of this PIPE transaction will be used to help develop and implement the company's plans to expand into India and the Far East.

Software

Investments:

Lazards invests in Intellitactics
Lazard Technology Partners has committed capital to a round of equity financing for Intellitactics, a developer of enterprise security management software that has recently moved its headquarters to Bethesda, Maryland. The $6.8m series D round also included existing investor JMI Equity Fund and will be used for product development and ensuring efficient customer service.

Investcorp funds Objectstar
Investcorp, through the Investcorp Technology Ventures Fund, has committed capital to Objectstar International, a Canadian company that develops business integration software. The terms of the transaction were not disclosed although the company will use the additional funds to develop its product suite. The funding has also resulted in the creation of a UK division.

Bain Capital commits to Invoke
Bain Capital has committed funds to a round of equity financing for Invoke Solutions, a provider of online marketing research software. The company, which is located in Tenafly, New Jersey and was formerly called NetOnCourse, has secured $6m in this series B round of funding, bringing its total funds to date to $14m. Invoke Solutions will use the new capital for general corporate purposes and for marketing and sales. BRM Capital, also an existing investor in the company, returned to invest in this round.

Red Rock Ventures invests in Arzoon
US venture capital firm Red Rock Ventures has co-led a $6.5m series B recapitalisation round of financing for Arzoon, a provider of logistics resource management software based in Palo Alto, California. InnoCal joined Red Rock as lead investor. Existing shareholder Venrock also participated in the funding. The company will use the funding as expansion capital to grow its customer base and continue to build the company.

Crimson Ventures leads round in PoliVec
Crimson Ventures has led a third round of venture capital financing for PoliVec, a San Francisco-based company that provides security policy automation software. The company secured $3m in this round, the proceeds of which it will use to expand on current market opportunities.

Goldman Sachs leads round for Avamar
Goldman Sachs Capital Partners has led a round of financing for Avamar Technologies, a provider of data protection solutions. Located in Irvine, California, Avamar secured $13m from investors that included Benchmark Capital, @Ventures and Lightspeed Venture Partners. The capital, which is the company's largest funding to date, will be used for general corporate purposes and to expand sales, marketing and client support.

Capitol Ventures invests in Vyant Technologies
Capitol Ventures has committed $3m to a recent round of institutional financing for Vyant Technologies, a Fairfax, Virginia-based company that develops data recovery software. The capital from existing investor Capitol Ventures will be used for marketing, an increase in the sales effort and product development.

Nth Power commits funds to Comverge
Nth Power Technologies is among a group of investors that have committed capital to a recent round of equity financing for Comverge, a New Jersey-based company that provides energy industry intelligence software. The company raised $13m in this round, the proceeds of which will be used for internal growth. Other investors in the round included E.On Venture Partners, EnerTech Capital, Shell Internet Ventures and Easton Hunt Capital Partners.

Carmel Ventures funds mFormation
Carmel Ventures has committed funds to a round of financing for mFormation, an Edison, New Jersey-based company that provides software to control and manage wireless data devices and applications. The company secured $9m in this series C round. Lead investor Carmel Ventures is a new investor in the company and was joined by existing investors Battery Ventures and North Bridge Venture Partners. The proceeds of this latest financing will be used for European expansion and further product development.

Nomad Venture finances Video Furnace
Nomad Venture Fund has provided capital for a round of financing for Video Furnace, a Libertyville, Illinois-based provider of software that enables live video to be distributed to devices and computers. The company raised $1m in this seed round of financing. Nomad Venture Fund led the round, which also included participation from individual investors. The proceeds of the round will be used for sales and marketing, according to VentureWire.

Mobius co-leads round for Dante
Mobius Venture Capital has co-led a first round of equity financing for The Dante Group, a Boulder, Colorado-based provider of enterprise software for business process monitoring. The company raised $4m in this financing, the proceeds of which will be used to expand its sales and marketing to attract national customers and partners. Mobius co-led the round with Sequel Partners and Vista Ventures.

Networking

Investment:

BA Venture Partners leads investment in Net6
BA Venture Partners has led an oversubscribed second round of venture capital financing for Net6, a Californian company that provides network-based application transformation gateways. Sierra Ventures and OVP Venture Partners also participated in this $8.5m round, the proceeds of which will be used to support company expansion, sales and marketing initiatives and to expand its global presence. Rory O'Driscoll, managing director of BA Venture Partners, has joined Net6's board of directors.

Adena Ventures leads round for SecureMethods
Adena Ventures has led a round of venture financing for SecureMethods, a Bethesda, Maryland-based provider of software to secure networks for companies. The company raised $3m in this series B round of funding. Adena Ventures was a new investor in SecureMethods and was joined by West Virginia Jobs Investment Trust, also a new investor, and previous investor Walker Ventures, as well as individuals within the company. The company will use the funds for sales and marketing, and to increase its customer support organisation.

GMG Capital Partners leads first tranche for Alloptic
GMG Capital Partners has co-led a first tranche of a fourth round of equity financing for Alloptic, an access network equipment provider based in Livermore, California. The company raised $35m in this first closing. GMG Capital Partners, an existing investor in the company, was joined by Athenian Venture Partners as lead investor. The tranche also included individuals. The proceeds from the round will be used for product development, marketing and sales. It brings Alloptic's total funding to date to $80m.

Manufacturing

Investment:

DSM Venturing invests in InMat
DSM Venturing has invested $500,000 in InMat, a US-based company that manufactures elastomeric nanocomposite coatings. This was a series B round for InMat, which was led by Pangaea Ventures and also included Ngen Partners. The capital will allow the company to develop its product range and to improve sales and marketing. It will also allow it to explore market opportunities.

Behrman Capital acquires ILC Industries
New York-based private equity firm Behrman Capital has acquired ILC Industries in a transaction valued at $303m. ILC Industries focuses on activities in two fields - the manufacture of microelectronic components for the aerospace and defence industries and the manufacture of softgood materials for space, military and commercial applications. Behrman Capital partnered with ILC's chief executive officer in this transaction.

Draper Triangle leads investment for robotics maker
Draper Triangle Ventures has led a $3m investment in a Pittsburgh-based robotics manufacturer with a $1.5m commitment. Aethon provides solutions for hauling materials indoors, particularly in hospitals where its Tug technology allows staff to move supplies and equipment around the hospital, which allows staff more time to treat patients. Private investors contributed the remaining funds, which will be used to expand the company's product range.

Maveron invests in board game manufacturer
Maveron has invested in a first round of equity financing for Cranium, a US-based company that manufactures the board game of the same name, as well as a number of other products. The company raised $21m in this round, which will help to fund the development of new adult, family and children's games, to expand the company into more than 20 international markets and to explore potential brand extensions beyond games. TPG Ventures co-led the round with Maveron.

Behrman capital acquires Woodcraft
Behrman Capital has acquired Woodcraft Industries, a State College, Pennsylvania-based manufacturer of hardwood and engineered wood doors for the kitchen cabinet industry. The total deal was worth $145m, including senior debt financing provided by Antares Capital, according to Private Equity Week.

Media

Investment:

Dolphin Equity Partners leads round for Adapt
Dolphin Equity Partners has led an oversubscribed series C round of equity funding for Adapt Media, a New York-based provider of a display system that creates advertisements on mobile display units. The company raised $8.65m in this round. Dolphin Equity Partners and FA Technology Ventures were new investors in the company, and existing investor RDT Group also participated. The proceeds from the round will be used to expand operations throughout the US and for sales and marketing.

Orchid Venture Partners funds Horror Channel
Orchid Venture Partners has provided $300,000 in seed-stage funding to The Horror Channel, a 24-hour digital cable television network that is focused exclusively on the horror and suspense genres and is set to launch in the fourth quarter of 2003. The company will use the funds to expand operations and to pursue agreements and acquire programming rights, according to VentureWire.

BCE Capital invests in Airborne Entertainment
BCE Capital has committed capital to Airborne Entertainment, a Montréal, Canada-based company that develops and distributes games and other entertainment programming for mobile devices. The company raised US$1.4m in this second round of financing. Existing investors Telesystem and BCE Capital provided the financing, the proceeds of which will be used for operations, to break even, and for continued product development.

Exit:

MCG Capital sells Venture Reporter
MCG Capital has realised its investment in Venture Reporter, a US-based company that provides information on venture capital deals and private equity-backed mergers and acquisitions activity across the US. Wicks Business Information has acquired the company, but the terms of the transaction were not disclosed. The Venture Reporter product line will become part of WBI's Alternative Investor business unit.

Internet

Investment:

Piedmont Angel Network leads investment in AvidXchange
Piedmont Angel Network has led a capital commitment to AvidXchange, a provider of online software for real estate businesses. The company is located in Charlotte, North Carolina, and has secured $250,000, bringing the total for this series B round to $2m. New investor Piedmont Angel Network was joined by prior investor Charlotte Angel Partners and the AvidXchange management and board of directors. The company will use the funding for product development and sales and marketing, according to VentureWire.

Copyright © 2003 AltAssets

Alex Hingston is a researcher with AltAssets.

If you have any information about your latest deals or exits and would like us to cover it, please e-mail your press releases to deals@AltAssets.net or call Alex Hingston on +44 (0)20 7242 8810.