Private Equity Week Wire for Tuesday 3-5

SANTA MONICA, CA — Agensys, Inc. announced today that it completed a private placement financing for gross proceeds of $42.8million. JPMorgan H&Q acted as the exclusive placement agent and financialadvisor for the offering. Bear Stearns Health Innoventures (BSHI) was thelead investor, with Orbimed Advisors and Alta Partners as co-leads. Thefinancing was placed with an international syndicate of institutionalinvestors and venture capital firms. Other new investors participating were HBM Partners AG, Hambrecht & Quist Capital Management, Carnegie Kapitalforvaltning AB, BSI AG, and ReqMed Company, Ltd. Existing shareholders making follow-on investments included Lombard Odier & Cie and several individual investors.

BELLEVUE, WA — Ignition Partners, an early and seed stage venture capital firm, today announced that Bill Malloy has joined the VC as its newest venture partner. Malloy brings more than 20 years of technology and marketing experience to Ignition Partners, including 11 years as an executive at McCaw Cellular/AT&T Wireless. While at AT&T Wireless, Malloy was credited with several notable achievements including creating and launching AT&T Digital One Rate and growing company sales from $4 billion to $6 billion. Most recently, Malloy served as the CEO of two start-ups, WorldStream Communications and Chicago-based Peapod. At each of these companies, Malloy led their respective turnaround and follow-on financing efforts.

PALO ALTO, CA — Novacept, developer of the NovaSure(TM) Impedance Controlled Endometrial Ablation System for the treatment of excessive menstrual bleeding (menorrhagia), today announced it is closing on a $30 million round of venture financing. The funding was co-led by Three Arch Partners of Portola Valley, California and New Enterprise Associates (NEA) of Menlo Park, California and also includes follow-on investments from the Company’s previous investors. Novacept also announced the addition of Michael Kaplan, a seasoned healthcare executive, to the Company’s Board of Directors.

AUSTIN, TX — BroadCloud Communications Inc., a leading provider of wireless data solutions for wireless carriers, network equipment providers and computer manufacturers, today announced it has received $8 million in second-round funding led by Austin Ventures and TL Ventures with participation from Access Ventures Partners. To date, BroadCloud has secured $14.7 million in venture funding.

NEW YORK — Kiodex Inc., a provider of Web-based energy risk management solutions, today announced it has secured an additional $10 million in financing from Warburg Pincus, the global private equity firm. The firm originally invested $15 million in April 2001, bringing its total current investment in Kiodex to $25 million.

SAN JOSE, CA — Siros Technologies Inc., making high-performance, low-cost optical transmission components a reality, announced today that it has successfully completed a $17 million funding round from new and existing investors. Siros will use the funding to commercialize its high-power Vertical Cavity Surface Emitting Lasers (VCSELs) for metro access, metro core, and long haul optical network applications.

This investment brings the total capital commitment in Siros’ optical transmission technology to more than $32 million. The round was led by new investor Austin Ventures and includes investments from other new entrants Applied Materials Ventures and Vortex Partners. Existing investors also participated in the round, including New Enterprise Associates (NEA), New Venture Partners, CMEA Ventures, Citigroup, Parker Price Venture Capital, Milepost Ventures, and Lowenthal Capital.

FAIRFAX, VA EuroTech Ltd. (AMEX:EUO-news),, announced today that it has entered into an agreement with a new capital source for a $10 million private equity line. The investor has agreed to purchase Eurotech common stock at a ten percent discount to the market price and the financing will be available to Eurotech, subject to certain conditions, at its option on an as-needed basis over a period of 24 months. Subject to certain limitations, Eurotech has the right to determine the timing and amount of each sale.

NEW YORK — Blue Capital Management, a privateinvestment firm that helps management teams execute growth strategies byproviding operating and strategic management expertise in addition to equity capital, announced today that Peter F. Dolle has joined the firm as a Managing Director. Mr. Dolle is a senior investment professional with more than 20years of experience identifying, financing and realizing value from privateequity transactions. Mr. Dolle was a principal of Clayton, Dubilier & Rice, Inc. (CD&R) and a general partner in three of CD&R’s private equity funds from 1984 to 1993. At CD&R, he shared responsibilities for the acquisition, on-going management and disposition of the firm’s portfolio investments, as well as for the management and administration of the firm and its private equity funds. Most recently, from 1996 to 2001, Mr. Dolle was a principal of Dubilier & Company, a New York-based private equity firm founded in 1996, which incorporates the integrated operating/financial talent approach pioneered by CD&R.

CHERRY HILL, NJ — TekConnect Corp., a leading provider of IT services and solutions to K-12 schools, colleges and universities in the Mid-Atlantic region, announced today that Greenlight Private Equity Partners, L.P., has invested $2 million in the Company in a private transaction. TekConnect also announced it is accelerating its growth strategy by acquiring the education IT services business of Imperial Software Systems, Inc., headquartered on Long Island, New York. TekConnect will do business as Imperial Software Systems on Long Island
NEW YORK & MENLO PARK, CA — Asante Partners LLC, an investment banking boutique focused primarily on the healthcare sector, announced today that Shannon Kete has joined the firm’s Menlo Park office as Vice President. Shannon joins Asante Partners from Morgan Stanley’s Investment Banking Division, where she served the firm’s clients on a broad base of corporate finance assignments, including initial public offerings, mergers and acquisitions, and private equity placements. While at Morgan Stanley, Shannon was selected for an important management assignment, overseeing the career development and client commitments of the division’s new investment banking associates.

SCOTTSDALE, AZ — Liquidix Inc. (OTC BB: LQDX) Tuesday announced that it has entered a strategic financing agreement with the Laurus Fund. Laurus is a private equity fund, based in New York, which specializes in providing financing to growing small- and mid-capitalization companies. To date, Laurus and Liquidix Inc. have executed a financing arrangement for up to $600,000 with a floor price of $1.25. In addition, Laurus and Liquidix Inc. are exploring the possibility of additional financing of $5 million.

NEW YORK — The NanoBusiness Alliance, the first industry association formed to support the development of the growing nanotechnology and small technology industries, today announced that it has entered into an agreement with Deloitte & Touche, LLP, the global professional services firm, to develop a series of groundbreaking reports, surveys and directories on the emerging business of nanotechnology. The report series will give corporations, governments and investors an insider’s look into current and up-and-coming applications in sensors, MEMS, microsystems, and nanotechnology, and the uses, the players, and the vast economic opportunities.

LONDON — Close Brothers Private Equity Limited has closed CBPE (UK) Fund VI at £202 million. This includes approximately £90 million from first time investors.The Fund will maintain CPBE?s focus on UK mid-market investments in the £10-£75 million range. Approximately 40% of the Fund has already been committed to nine investments (Notes to Editors). CPBE plans to invest the remainder of the Fund over the next 18-24 months in a further 6-10 transactions.

NEW HAVEN, CT —, Inc. (NASDAQ: DSLN), a leading, nationwide, direct provider of high-speed Internet access solutions for small- and medium-sized businesses, today announced that it has recently closed a $10 million financing tranche, which represents the final installment of a $20 million equity investment from VantagePoint Venture Partners, a private investment firm with more than $2.5 billion under management.

In addition to the $20 million received from VantagePoint, the Company has already received $10 million of a previously announced $15 million financing commitment from a consortium of investors led by Columbia Capital, and including Charles River Ventures, Hunt Private Equity Group, and National Investors Group. The completion of the VantagePoint transaction triggers the closing of the remaining $5 million investment tranche from the Columbia Capital-led syndicate, which is currently expected to occur in May. The closing is contingent upon shareholder approval, however, the company and the new investors have received proxies that they believe will be sufficient to approve the transaction.

SEATTLE — Copan, a private venture capital firm specializing in strategic capital for global expansion, today announced it has appointed Spencer Hyman, a former Amazon executive, director of its London office. Hyman will head Copan UK, where he will be responsible for providing guidance, strategic planning and support to the firm’s portfolio companies.

Prior to joining Copan, Hyman was retail director of technology products at, the European subsidiary of Internet retailer, As retail director, Hyman built the company’s team of experts on electronics, software and video games, and led pan-European negotiations with major vendors in software, video games and electronics across Europe.

SAN MATEO, CA — eFinance Corp. today announced it has completed a $6 million Series C funding round led by CSFB’s Sprout Group and joined by NIF Ventures. eFinance is a leading technology company offering credit decisioning solutions that allow customers to quickly and accurately gauge the financial soundness of their trading partners. San Mateo-based eFinance will use the funding to support the rapid growth of the company and deliver additional technology products and consulting services to the market.
DALLAS — Sevin Rosen Funds, an early-stage, high-tech venture capital firm, recently hired Dr. Daniel Leff as a Senior Associate to pursue investment opportunities in emerging technologies. Leff focuses on investment prospects in a number of emerging areas that include Nanotechnology, fuel cells, advanced materials, and the interface between life sciences and Silicon. Dr. Leff is involved in Sevin Rosen Funds’ portfolio companies Luxtera, OpVista, and airBand Communications. Co-author of several Nanotechnology research articles published in peer-reviewed scientific journals, Dr. Leff has spent several years contributing to this emerging field. He is a named inventor on two patents in the field of Nanotechnology and has given invited talks on the subject in a number of business as well as academic forums. Prior to joining Sevin Rosen Funds, Dr. Leff worked with Redpoint Ventures, Intel Corporation, and founded a Nanotechnology startup company.

COLUMBIA, MD — Essex Corp. (OTC Bulletin Board: ESEX) announced today that it had received an additional $1.5 million investment from Networking Ventures LLC and Global Environment Fund. The commitment is part of a proposed $5.5 million private placement of its common stock to accredited investors. These funds are to be used for general corporate purposes, principally to continue the development of the Company’s optical technology products. The existing investors, or their affiliates, have committed to purchase $1.5 million of the private placement at a price of approximately $6.50 per share. Essex has already received the first $500,000. The Company will adjust the effective share price to the current investors in the event that the share price for the remaining $4 million in this round falls below $6.50. The Company expects to close this round of financing by May.

TORONTO — OPG Ventures Inc., the venture capital subsidiary of Ontario Power Generation, today announced a $4 million investment in Solicore Inc., a manufacturer of innovative solid polymer lithium-ion batteries and advanced battery systems.

SAN JOSE, CA — Silicon Access Networks, an industry leader in semiconductor data path processing solutions, today announced it has secured $39 million from new and existing investors in its fourth round of funding. Soros Private Equity Partners and Norwest Venture Partners co-led the round. New Investors include Pilgrim Baxter, Van Wagoner Capital Management, Parker Price Venture Capital and Glynn Capital. Existing participating investors also include the Sprout Group, Tallwood Venture Capital and Synopsys. Morgan Stanley acted as sole placement agent to Silicon Access Networks.

TORONTO — TORONTO, March 4 /CNW/ – The CPP Investment Board announced today the commitment of approximately $220 million over five years to private equity funds in Europe and the United States. The larger commitment is 100 million Euros ($140 million) to Bridgepoint Capital Limited for investment in mid-market buyout opportunities, equally divided between the United Kingdom and Continental Europe. The Second European Private Equity Fund managed by Bridgepoint Capital has a target size of 1.6 billion Euros ($2.4 billion). The investment firm was established in the 1980s as NatWest Equity Partners. The second commitment is US$50 million ($80 million) to Lexington Partners Inc. for investment through the Lexington Capital Partners V limited partnership, investing in secondary market opportunities. The fund has a target size of US$2.5 billion. Lexington is the largest independent manager of secondary private equity capital with US$4.5 billion currently under management in more than 500 private equity limited partnerships.

SOUTH PLAINFIELD, NJ — Leading scientists in theoptical networking industry announced today the establishment of InplanePhotonics, a developer and manufacturer of small, low-cost integrated opticalcomponents and platforms. Introducing disruptive technology, Inplane isdeveloping advanced, integrated optical components for network sub-system andsystems manufacturers that will dramatically reduce systems’ costs, size, andcomplexity while increasing reliability in optical networks. The company alsoannounced its Series A round in excess of $20 million in funding led byJerusalem Venture Partners (JVP) and Morgenthaler.

SCOTTSDALE, AZ — iPhysicianNet is pleased to announce the successful completion of an additional round of private (venture) financing. Over $11 million was recently secured from existing investors in a deal led by Veron International and BioAsia. This brings total funding to nearly $80 million since the company was started in 1996.

SAN MATEO, CA — Sorrent, a leading creator and publisher of connected interactive games for wireless and Internet-capable devices, today announced it has completed its Series A financing round. New Enterprise Associates (NEA), a leading venture capital firm investing primarily in information technology, biotechnology and medical/life sciences companies, led the round. A co-led investment from Sienna Ventures, an early-stage technology investment firm targeting the wireless communications, networking, Internet infrastructure and software sectors, was also secured. As part of the investment, Stewart Alsop, NEA’s general partner, and Dan Skaff, Sienna’s managing partner, joined Sorrent’s board of directors.

Founded by 20-year gaming legend Scott Orr, whose design and executive producer credits include such industry hits as John Madden Football, Bill Walsh and NCAA College Football, NHL Hockey, Andretti and Nascar Racing and Eagle Eye Mysteries, Sorrent provides solo and multiplayer game experiences that are connected, persistent and character-oriented. The company’s proprietary convergence technology encompasses a wide range of Internet capable devices, ranging from cell phones to PC browsers to set-top boxes.

LAKELAND, FL — Solicore Inc., a manufacturer of innovative solid polymer lithium-ion batteries and advanced battery manufacturing systems, announced today that it has closed a $7 million Series A Preferred financing round. OPG Ventures Inc., the venture capital subsidiary of Ontario Power Generation, was the lead investor. The round also included investment by Hydro-Quebec CapiTech, Inc. the venture capital subsidiary of Hydro-Quebec, the Morgan Keegan Early Stage Fund, and private investors.

PALO ALTO, CA & WALTHAM, MA — Advanced Technology Ventures (ATV) today announced that Robert Hower has joined the firm as a partner. Like the firm’s recent additions of Jean George as partner, and Prabakar Sundarrajan and Ken Noonan as technology partners, Hower brings strong operating and investment experience, and extensive domain expertise to the firm.

Prior to joining ATV, Hower was a director at BancBoston Ventures where he completed several early-stage investments in the telecommunications infrastructure and software sector including Trebia Networks, Chinook Communications, Telephotonics, and Paceline Systems. Before BancBoston Ventures, Hower was vice president of sales at LHS Group (EMEA), where he built the firm’s Enhanced Services Division for the Europe, Middle East and Africa regions. During his tenure, he achieved significant sales increases and developed active selling partnerships with Cisco Systems, Lucent, Nortel and Cap Gemini.

SEATTLE — Voyager Capital today announced that Tom Kippola, managing director of The Chasm Group and co-author of the best selling high-tech investment book, The Gorilla Game: The Investor’s Guide To Picking Winners In High-Technology, will double his time commitment as a venture partner at the firm.

Kippola joined Voyager Capital as a venture partner in April 2000 with the launch of the firm’s $215 million Fund II, which is targeted at early stage enterprise software and services, Internet infrastructure, and wireless companies in the Northwest and San Francisco Bay Area. Working out of the Palo Alto office, Kippola divides his time between developing corporate business strategies, analyzing market trends, and deal sourcing in the enterprise software and technology enabled services sectors. Kippola currently serves on the board of ADX and holds advisory seats with two Voyager portfolio companies, SeeCommerce and eCustomers.

LEIDEN, NETHERLANDS — Dutch antibody and vaccine company Crucell N.V. (Nasdaq: CRXL; Euronext) today announced that Galapagos Genomics NV intends to complete a private placement. The financial investors include a triple-A consortium of venture capital firms not related to Crucell. Financial details will be disclosed in a Galapagos Genomics NV press release this week.

Galapagos Genomics NV was founded by Crucell to exploit its proprietary human cell expression platform PER.C6 in the field of functional genomics. It was established in 1999 as a joint venture with the Belgium-based Tibotec-Virco, which contributed its high throughput screening technologies. To date, these companies jointly invested Euro 9 million in Galapagos.

BETHESDA, MD— American Capital Strategies Ltd. (Nasdaq: ACAS) announced today it has invested $29 million to fund the acquisition of Hickson DanChem Inc., a specialty contract chemical manufacturer, from Arch Chemicals (NYSE: ARJ). The company will be called DanChem Technologies. Arch has sold DanChem subsequent to its purchase and integration of DanChem’s parent, Hickson International. American Capital has funded a senior credit facility, subordinated notes with warrants, and common equity. DanChem management made a significant cash investment in the buyout.

BILLERICA, MA — Thermogenic Imaging, manufacturer of bioanalytical instruments used to “measure the heat of life” for drug research and development, today announced that it has completed a concurrent spin-out and $6.5MM venture financing. The company has also appointed its initial Board of Directors. Thermogenic Imaging was formed in late 2000 to commercialize a new technology for drug discovery developed by GlaxoSmithKline (NYSE: GSK) and FLIR Systems Inc. (Nasdaq: FLIR). The technology, Thermal Signature Analysis (TSA), uses non-invasive ultra-sensitive thermal imaging to measure unique thermal signatures in cells and animals that are indicative of disease, genetic variations or drug function.

FT. LAUDERDALE, FL — Holiday RV Superstores Inc. (Nasdaq: RVEE) today announced several strategic initiatives, including its completion of the final round of a $3.5 million private equity offering and certain operational changes.

BOSTON — BDirect Capital Inc., the financial services firm specializing in alternative investments, today announced that Frank Russell Company (Tacoma, WA) has invested in BDirect Capital. Russell joined existing shareholders in completing a stock offering that closed last week. Old Mutual plc is also a significant minority shareholder in BDirect Capital.

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