Private Equity Week Wire for Monday 10/22

DENVER — Wireless and supporting technologies venture capital firm iSherpa Capital has attracted more than national business plans and attention for wireless industries; they also have attracted one of the premiere wireless and technology executives in the country, Peter Mannetti. Mannetti announced today he has become the newest managing partner for iSherpa Capital, joining co-founders and managing partners Vipanj Patel and Gary Rohr. Most recently, he was the president and CEO of Qwest Wireless, LLC, where he built the wireless business for the telecommunications giant from the ground up to one million subscribers in less than four years, and positioned the corporation as one of the fastest growing wireless companies in the U.S.

MARTINSRIED, GERMANY — Axxima Pharmaceuticals AG announced today the completion of a Euro 30.6 million private financing round led by New York based Bear Stearns Health Innoventures LLC.

New investors joining Health Innoventures include HBM BioVentures Ltd. (Switzerland), Novartis Bioventures Ltd. (Switzerland), Heidelberg Innovation Bioscience Venture II GmbH & Co. KG (Germany), Hungarian Innovative Technologies Fund LLC (Hungary) and WPD Venture Capital II GmbH & Co. KG (Germany). Existing investors who supported the financing include the co-lead of this round TVM Techno Venture Management (Germany), Schroder Ventures/International Biotechnology Trust plc. (UK), NIB Capital Private Equity NV (The Netherlands), GLS Holding IX GmbH (Germany), Sued Venture Capital Investition GmbH & Co KG (Germany) and Claus & Friedrich Dieckell (Germany).

LEXINGTON, MA — BladeLogic Inc., an early-stage company with more than 50 enterprise customers, today announced that it has received $6 million in first-round funding, led jointly by Battery Ventures and Bessemer Venture Partners. Both venture firms have a proven track record of building highly successful software companies.

BladeLogic is creating the industry’s first multi-platform solution for managing complex networks of servers running a variety of operating systems. Its server management solutions help systems administrators instantly identify and fix widespread problems such as inconsistent software installations, vulnerability to viruses and performance problems resulting from software misconfigurations.

GARDEN CITY, NY — Mobilitec Inc., announced today that it has raised over $10 million to further market its products, and to strengthen its worldwide presence. Sun Microsystems joined the round, which was led by Lucent Venture Partners LLC. AIG Orion Fund, seed investor, also participated.

Mobilitec Inc., is a leading provider of platforms enabling over-the-air delivery of services and applications to mobile devices. Its first product, the mPower(TM) platform, is intended for wireless carriers and service providers that deploy Java-enabled mobile phones and PDAs.

MALVERN, PA — Orthovita Inc. (NASDAQ-NM / NASDAQ-Europe: VITA), a leading developer of orthopaedic biomaterials, announced today that it has completed a $10,000,000 product development financing with Paul Capital Royalty Acquisition Fund, LP (“Paul Royalty”). Orthovita sold Paul Royalty a royalty interest for $5,000,000 and sold 2,582,645 shares of its common stock for $5,000,000, for gross proceeds of $10,000,000.

JERUSALEM — Dr. Dalia Megiddo, Managing Partner of InnoMed, the life sciences fund of Jerusalem Global Ventures, announced today that Jerusalem Global Ventures has led a $6 million financing round for Israel-based Limber Ltd. Participating in this investment are Gemini Israel Funds and Advent International. Limber’s seed financing round was led by Gemini in December 1999.ARLINGTON, VA — E*TRADE Bank, the nation’s largest branchless bank and a wholly-owned subsidiary of E*TRADE Group, Inc. (NYSE: ET), today announced that it has invested $3 million in the CRA Fund of Small Business Investment Companies, L.P. (“SBICs”), a limited partnership through which banks invest in a diversified portfolio of SBICs operating throughout the United States.

BURNABY, CANADA & CUPERTINO, CA — TELUS Ventures has invested US$2 million in enterprise Web services company, Jamcracker Inc. of Cupertino California and formed a partnership to offer Jamcracker services in Canada. The TELUS investment and partnership provides Jamcracker immediate, nationwide entry into the Canadian market. The partnership provides TELUS the first marketing and distribution agreement for Jamcracker services in Canada. The deal is expected to provide TELUS in excess of C$50 million of revenue over the next three years.