Private Equity Week Wire for Monday 6/18

PALO ALTO, CA — Technology Crossover Ventures (TCV) today announced that Amy Vernetti has joined the firm as a General Partner. Previously with Garage.com, Vernetti brings over 9 years of executive recruiting and strategy experience to TCV. Prior to TCV, Vernetti was the “Human Capitalist” at Garage.com, the leading venture capital investment bank. Vernetti created the Human Capital program at Garage.com, which is the only program of its kind in the venture capital community and is a key component of Garage.com’s offerings. As an integrated recruiting solution for its portfolio companies, the program matches innovative start-ups with the best and brightest executives as they build their management teams. As the program’s leader, Vernetti was a headliner at the Garage.com “Boot Camps” across the country, speaking to entrepreneurs on the importance of recruiting and retaining the right people to drive their businesses.

AUSTIN, TEXAS — AV Labs, the venture accelerator based in Austin, Texas, announced today that Larry Warnock has joined the firm as a partner. Warnock is a seasoned software marketing professional that will be active in the recruitment and management of the Labs’ portfolio companies. Prior to joining AV Labs, Larry served most recently as the Vice President of Product Marketing for the eCommerce products group of Siebel Systems, Inc. in Silicon Valley. Larry was responsible for developing and growing the global market leadership position for one of Siebel’s fastest growing product groups. Previously, he served as Vice President of Marketing at OnLink Technologies through their successful acquisition by Siebel Systems. He led the development of OnLink’s marketing strategy and programs and served as an officer of this rapidly growing start-up. Prior to joining OnLink, Larry was the Vice President of Corporate Marketing for Documentum, Inc. also in California, a leader in document and web content management software. He joined Documentum in its early beginnings and contributed to their revenue and market share growth through their successful IPO.

HAWTHORNE, CA — OSI Systems Inc. (Nasdaq:OSIS) today announced that it has engaged Roth Capital Partners LLC to serve as financialadvisor to the company’s wholly owned fiber optic subsidiary, OSI Fibercomm Inc. Roth Capital’s role will include assisting OSI Fibercomm in exploring possible private equity financing or strategic alternatives to assist the company in developing the infrastructureand capacity to keep pace with the rapid growth of the fiber optic components marketplace.

GREENWICH, CT — MMC Capital Inc., the private equity investment subsidiary of Marsh & McLennan Companies, Inc., today announcedthat Robert I. Lipp has been appointed a senior advisor to the company. Mr. Lipp will provide counsel on all aspects of MMC Capital’s business, with particular emphasis on investment activities in the insurance and other financial services industries. Mr. Lipp, 63, is chairman of Travelers Property Casualty, headquartered in Hartford, CT, a position he will continue to hold. He recently stepped down as vice chairman, member ofthe Office of the Chairman, and CEO of the Global Consumer Business at Citigroup. Mr. Lipp continues to serve on the Board of Directors of Citigroup, Inc.

WESTBOROUGH, MA — Pactolus Communication Software, Inc., a leading provider of XML-based enhanced services solutions for SIP-enabled networks announced the completion of its second round ofinstitutional financing, totaling $6 million. Commonwealth Capital Ventures led the round, with additional investment coming fromYankeeTek Ventures, and Mid-Atlantic Venture Funds.

DUBLIN, IRELAND & WALNUT CREEK, CA — Cape Clear Software, a leading provider of Web Services technology, today announced that ithas successfully completed a $16 million second round of funding. The round includes new investments from leading venture capital firms Accel Partners, who led the round, and Greylock. Cape Clear Software is also announcing the appointment ofKevin Comolli from Accel Partners and Aneel Bhusri from Greylock to the company’s Board of Directors. Cape Clear Software develops and markets Web Services products that enable corporations to link their internal IT systems and applications quickly and easily over the Internet. CapeClear is supporting a new generation of business applications by making back-end systems available to third parties over the Internet. This removes the traditional barriers to creatingbusiness-to-business applications.

IRVINE, CA— Viacore, a pioneer in the development and deployment of business process networks (BPNs), announced today that it closed $43 million in Series C equity financing from corporate and venture capital investors. The round was led by new investor VantagePoint Venture Partners and included investments from Cisco Systems, Inc., Dell (Nasdaq: DELL), Hewlett-Packard Company, and Intel Capital, as well as continuing investments from SOFTBANK Capital, Arrow Electronics, Inc. (NYSE: ARW), and Avnet, Inc. (NYSE: AVT).

WAKEFIELD, MA — Boston Medical Technologies, the pioneer of office and hospital-based, non-invasive systems for measurement of heart rate variability (HRV), today announced that it has completed its third round of financing for $22.6 million. Initial and second round investors Prism Venture Partners, Atlas Venture Partners, Collinson, Howe & Lennox, Phoenix Home Life Mutual Company, Exeter Capital, Boston University Community Technology Fund, as well as an undisclosed multinational healthcare company, participated along with new investors TSG Equity Partners and the University of North Carolina at Chapel Hill, Foundation Investment Fund, Inc. in this round of financing. Funding will be used to help Boston Medical Technologies continue to expand and meet the rapidly growing demand for its Anscore(TM) Health Management System. The Company has now raised a cumulative total of $38 million since July, 1998.

YAVNE, ISRAEL — Orbotech Ltd. (NASDAQ/NM SYMBOL: ORBK) today announced the formation of Orbotech Technology Ventures(“Orbotech Ventures”), a new corporate venture fund established to develop and expand opportunities for growth and further strengthen Orbotech’s overall position within the electronicsindustry. Orbotech Ventures will actively seek out prospective seed or early-stage companies which have either technologies or products complementing Orbotech’s own and which provide asynergistic fit with the Company’s long-term business strategy. The fund will operate from Orbotech’s headquarters in Yavne, Israel, under the management of Asher Levy, who will serve as its Managing Director, and Albert Yafe, who will serveas Chief Technology Officer. Both Mr. Levy and Mr. Yafe are long-time Orbotech veterans, Mr. Levy having most recently held the position of Managing Director of the Company’swholly-owned Hong Kong subsidiary, Orbotech Pacific Ltd., and Mr. Yafe having previously served as Orbotech’s Vice President for Research and Development.

JERUSALEM — Shellcase Ltd., a leading developer and provider of Wafer Level Chip Size Packaging (WLSCP), announced that it raised $20 million in a private placement. Investors in the round include Motorola Ventures, GE Pension Fund, Schott Glaswerke GmhH, Palladin Asset Management LLC, SG Cowen Ventures, ZLP Master Technology Fund as well as current Shellcase investors including Clal Electronics Industries LTD, Israel Infinity Venture Capital Fund, Ampal-Israel Corp. of New York, and Jafco Co. Ltd. of Japan.

HERZLIYA, ISRAEL — GOU Lite Ltd., an Israeli company specializing in optical laser technology today announced that Startupfactory, a leadingNordic venture capital firm focusing on IT and telecom, exercised the option to increase their GOU Lite investment by $1M. This amounts to a total investment from Startupfactory of $2.5M.

CONCORD, MA — Crossbeam Systems, Inc. today announced a series of developments aimed at unleashing major improvements in the economics of data center operations. The company unveiled its breakthrough multi-gigabit network application platform architecture, its partner program involving market-leading Check Point Software Technologies Ltd. (Nasdaq: CHKP) and plans for partnerships with other software companies this year. Crossbeam recently secured two global service provider beta customers and closed its Series B financing, led by Commonwealth Capital Ventures, along with existing investors Matrix Partners, North Bridge Venture Partners and Charles River Ventures, bringing the total investment in the company to more than $30 million.

LOUISVILLE, CO — Medivance Inc. announced today that it has completed a $16 million Series B private equity financing. The new financing was led by Cross Atlantic Partners and Camden Partners. Medivance’s existing investors Skyline Ventures, Partisan Management Group and Kimberly Clark Ventures also participated. Additional new investors included CSFB Private Equity, New England Venture Partners, and Nikko Synergy Ventures. The Series B financing will serve to strengthen the organization’s infrastructure and provide resources to support the expected market launch of the company’s Arctic Sun product line later this year.

ANDOVER, MA — InsightShare, a pioneer of next-generation collaborative customer relationship management (CRM) software and services, today announced that it has raised $13.8 million in private funds to date for the launch of its software product, Customer Collaborationô. Funds from The Forum Corporation, Pearson PLC and other private sources have enabled the company to complete beta testing this spring and to launch its suite of collaborative tools this summer.