Private Equity Week Wire for Monday 12/10

ANDOVER, MA — Sandburst Corp., a leading developer of 10 Gigabit packet chip set technology, today announced that it has closed a $27.5 million second round of venture capital funding. Led by Investor AB, through its wholly-owned subsidiary Investor Growth Capital, the round included participation from 3i, a leading international venture capital company, and Boston University’s Community Technology Fund, along with returning investors Matrix Partners and Greylock. This round brings the total investment in Sandburst to more than $36 million.

LONDON & REDWOOD CITY, CA — RadioScape Ltd., a leading developer of semiconductor intellectual property for the wireless and digital communications markets, announced today $22 million in funding led by Royal Bank Ventures (RBV), the technology venture capital fund of The Royal Bank of Scotland. Other participants in the funding round include new investor Scottish Equity Partners, and existing investors Atlas Venture and Texas Instruments Incorporated. These investments enable RadioScape to further its global growth and expansion in international markets.

SAN MATEO, CA — RouteScience, the first company to offer a route control product, today announced it raised $30.5 million in series B funding from leading venture capital firms. The Series B investment is led by Sevin Rosen Funds with additional investments by Foundation Capital and the original series A investors, Sequoia Capital and Benchmark Capital. Combined with its initial investment round in January 2000, RouteScience now has received a total of $56 million in the 24 months since its inception. RouteScience will use the funds to develop additional route control products for enterprises and service providers and to expand its sales and marketing organizations to sell and deliver products worldwide.

AUSTIN, TEXAS — BetweenMarkets Inc., developer of dynamic trade management solutions that enable the creation and execution of individualized relationships within a value chain, has secured $3 million in funding. Trellis Partners led the investment with Gideon Hixon Ventures and several private individuals also contributing. The cash infusion has enabled BetweenMarkets to fill out its management team with industry veterans and will help the company expand its technical, sales, business development and marketing teams in preparation for the launch of its software next year.

STOCKHOLM, SWEDEN — 3i Group PLC and the Swedish Industrial Development Fund are making a first-stage investment totalling SEK 10 m in fast-food enterprise MicVac AB, which has developed and patented an entirely novel method for producing ready-to-eat food using microwave technology. MicVac makes vacuum-packed, nourishing, high-quality, tasty meals.

HARTFORD, CT — DirectAdvice Inc., the global leader in Internet-based financial planning and advice technology, announced today the signing of a $16 million staged financing plan with Warburg Pincus, the global private equity firm.

PRINCETON, NJ — Quantiva, the emerging leader in performance management for Internet businesses, today announced the closing of its first full round of funding. New investors 3i, a leading international venture capital company, and Draper Fisher Jurvetson Gotham (DFJ Gotham) join seed investor Castile Ventures to complete the $7 million dollar round.

AUSTIN, TEXAS — Lane15 Software, a provider of InfiniBand(TM)(1) management software, today announced the completion of a $12 million Series B round of venture financing. New investors in Lane15 include Index Ventures, a leading pan-European venture capital firm; Quanta Computer, the largest notebook PC ODM manufacturer worldwide; and Convergent Investors, an Austin-based information technology venture capital firm. Current investors, including AV Labs, Austin Ventures, Dell Ventures, Intel Capital and Lightspeed Ventures, also committed funds to Lane15’s second round of financing. In related news, Lane15 Software expanded its Board of Directors. Bernard Dalle, partner at Index Ventures, and John Thornton, general partner of Austin Ventures are the newest members.

NEW YORK — — KaVaDo Inc., the leading technologyprovider of Web Application Protection solutions, today announced that thecompany has completed its most recent round of venture capital funding,resulting in a total of $6.8 million. 3i, a leading international venturecapital firm, led the round. Banc of America Equity Partners was also a largecontributor to this latest investment cycle. KaVaDo will use the funds tocontinue its plan of aggressive, strategic growth in the rapidly expanding WebApplication Protection market.

BOSTON & YOKNEAM, ISRAEL — OREX Computed Radiography Ltd., the leading developer of high quality compact Computed Radiography, CR, Systems for both medical and dental applications, announced today that it has raised $5 million in private financing. DOR Ventures, based in Brussels, and Medica Venture Partners, based in Tel Aviv, co-led the round, which also included follow-on investments from the major existing shareholders Catalyst Fund LP and First Isratech. OREX also announced that in light of the high level of interest expressed by additional potential investors it might increase the size of the financing round. The private placement is OREX’s third since it was established in 1995.

HAVERHILL, MA — GlobalWare Solutions, a leading global provider of Software Contract Manufacturing, Content Management and eMarket Solutions, today announced that it has raised an initial round of $30 million in equity capital through a private placement of common and preferred stock with Mezzanine Management LLC, one of Europe’s largest private equity investment firms.

With more than 50 Fortune 100 customers, GlobalWare is in an ideal position to capitalize on market opportunities that lie ahead. The Company plans to use the funds to strengthen its internal operations and to support its global expansion plans through strategic acquisitions.

SUNNYVALE, CA — Axis Systems Inc. today announced that Walter G. Kortschak has been named to the Axis Board of Directors. Kortschak is a managing partner at Summit Partners, a private equity and venture capital firm based in Palo Alto, Boston and London. In addition to Kortschak joining the board, Summit Partners has made an investment in Axis Systems.
HAMILTON, BERMUDA — PXRE Group Ltd. (NYSE: PXT) today announced that it has signed a definitive agreement with Capital Z Financial Services Fund II, investment funds managed by Reservoir Capital Group, and Richard Rainwater, to invest $150 million in new equity capital in the form of convertible preferred stock. The investment will enable PXRE to increase underwriting capacity and therefore maximize participation in the new market environment. Following the transaction, PXRE’s total capital will increase to more than $500 million.

STOCKHOLM, SWEDEN — Aspiro acquires the Swedish application company Mgage AB. Among other things, the deal gives Aspiro a successful chat application and Mannesmann Vodafone as a customer. Mgage develops and sells applications to mobile operators that allow subscribers to chat with each other. The Stockholm-based company was founded in 2000 and its biggest customer to date is the German operator Mannesmann Vodafone. Mgage also has close contacts with Ericsson GmbH, Nokia and Picofun, all retailers of the company’s services. As announced previously, the acquisition will be financed by a non-cash share issue equal to around 5,8 million shares conditional upon the approval of the extra general meeting of shareholders of Aspiro on December 17. The final acquisition agreement between Aspiro and Mgage’s owners, InnovationsKapital, Kaupthing Alfa 1 Venture Capital fond, Trident capital and other owners, was signed this weekend.

STOCKHOLM, SWEDEN — Ledstiernan’s portfolio company Incomit has raised further financing of MSEK 20, split equally between Ledstiernan and New Ground Capital Ltd (a Guernsey-based Investment Company). Incomit has also appointed Edouard Mercier as CEO.

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