Private Equity Week Wire for Tuesday 7/24

NEW YORK — RxCentric Inc., a leading provider of physician relationship management solutions to the pharmaceutical industry, todayannounced that it has closed $5 million in a Series C financing from existing investors bringing the total capital invested in the company to $21 million. The new funds come amidst solid revenue growth from leading pharmaceutical clients and the rapid expansion of RxCentric’s access to a network of prescribing physicians inthe United States. The financing was led by RxCentric’s lead venture capital investors, which include Insight Capital Partners, CHL Medical Partners and Exeter Capital Partners. Ventiv Health,Inc. (Nasdaq: VTIV), RxCentric’s strategic sales and marketing partner, also participated. The company believes that the funds raised from this financing combined with itsrevenue projections for the remainder of 2001 will take the firm to profitability.

BAD HOMBURG, GERMANY — Mcn AG, Bad Homburg, braves the stagnation in the telecommunication market: By late June 2001 the supplier of intelligent telecommunication services solicited approximately 14 million (mill.) Euro of new capital. mcn AG was able to win over BHF-Bank, Dresdner Kleinwort Capital, the Swiss private equity company Invision that is inter alia active for the Beisheim-Handelsgesellschaft, the VCH Equity Group, specialist in Later-Stage Investments and the Munich TecVenture Partners with a strong base in the USA. The previous lead investor, DaimlerChrysler Venture, also participated in the capital increase.

SEATTLE — Blue Nile Inc., the leading online retailer of diamonds and fine jewelry, announced today that it has closed a $7 million round ofventure funding. The company also announced that significant sales growth and the achievement of key financial and operational metrics will enable it to reach profitability earlier inthe fourth quarter than originally expected. Six of the nation’s top venture capital firms participated in the funding round, including Bessemer Venture Partners; Trinity Ventures; Kleiner Perkins Caufield & Byers; LightspeedVenture Partners (formerly Weiss, Peck & Greer Venture Partners); Integral Capital Partners; and Vulcan Ventures Inc. All had previously invested in Blue Nile. Including thisfunding round, the company has secured a total of $57 million in equity financing, along with a $15 million inventory credit line from GE Capital.

NEW YORK — Jerusalem Venture Partners (JVP), aleading international communications venture capital firm, announced today theinterim closing of its largest fund, JVP IV, with $350 million in commitments.The new fund targets early-stage communications and Internet infrastructurecompanies.JVP IV’s limited partners make up a global network of strategic partners,institutional investors and financial institutions including France Telecom,Infineon, Boeing, Nortel Networks, Reuters, Columbia University, MIT, FlagVenture Partners, Horsley Bridge, Merrill Lynch Ventures and AXA. Asianinvestors such as the Government of Singapore, Jafco, and Temasek join Israeliinvestors such as Bank Leumi and Hebrew University in their commitments to JVPIV. With JVP IV, the firm has expanded its worldwide network of strategic andprivate equity investors to include such funds as Oak Investment Partners,Battery Ventures, Worldview Technology Partners, Lucent Venture Partners, andEuropean investors such as Apax Partners and 3i. JVP and co-investors havejointly invested $47 million in the following companies: Quarry Technologies,an innovative supplier of intelligent IP services equipment, Magnifire, adeveloper of a dynamic content routing system for the Internet and XMPie, across media personalization software solution. Three other recent investmentsfrom JVP IV are not yet announced.

BURLINGTON, MA — InvisibleHand Networks Inc., a leader in the evolution of the bandwidth market, announced a second close of itsSeries A financing, raising an additional $2.5 million from Polaris Venture Partners and a group of individual investors. This brings the total amount raised by InvisibleHand to over$8 million. The additional funds are earmarked for aggressive sales and marketing efforts and to fund enhancements to the Company’s Merkato(TM) platform, an innovative digitalresource transaction platform that enables an efficient and cost-effective real-time platform for carriers and network service providers to dynamically sell bandwidth.

SUNNYVALE, CA — Blue Pumpkin Software Inc., anindustry leader in enterprise workforce optimization solutions, todayannounced it has closed a senior mezzanine round of funding totaling$19.2 million. The funding was led by J&W Seligman & Co. with investments byCE Unterberg Towbin, Needham Capital Partners and Liberty View EquityPartners. Also participating was a group of previous investors that includedSiemens Mustang Ventures, Brentwood Venture Capital, Dain Rauscher Wessels andVan Wagoner Capital Management.

LONDON — The launch has been announced of Everclear International Inc. – a new venture capital company set up by Pacific Federal SA. Everclear has initial funding in excess of $ 25 million and will be investing in the Indian sub-continent. India is fast emerging as a leading provider of out-sourced technical services,worldwide. Already, it produces more engineering graduates annually than any other country. Everclear International believes this offers tremendous potential for future profitable growth. As such, it will be investing in a variety of consumer, business and media companiesand has investments concluding in the next few days, in established organizations, now worth in excess of $ 700 million.

PALO ALTO, CA — Tacit Knowledge Systems Inc., apioneer and leader in Expertise Automation for the enterprise, today announcedthat it has completed a Series C financing totaling $10 million, led by AltaPartners, a new investor in Tacit. Draper Fisher Jurvetson and Reutersspin-out, RVC Greenhouse Fund, have also expanded their investment in Tacit byparticipating in this round. Tacit also announced the appointment of Robert Simon of Alta Partners toits board of directors.

LONDON — Shazam Entertainment today announces the completion of a first round of private investor equity funding worth $7.5 million. The capital raised will enable Shazam to take its technology to market with a music recognition service that will be launched in the UK early next year. The investment is led by IDG Ventures Europe, the London-based venture capital firm with Lynx New Media and FLV Fund participating in the round. Shazam’s patent pending technology in audio pattern recognition offers mobile phone users a music identification service that works with recorded music heard in pubs, clubs, cafes, cinemas, or on the radio. When people hear music they like, they simply dial Shazam’s four-digit number, wait fifteen seconds, and then immediately learn the name of the track, album, and artist over their mobile phone and via text message. Consumers will also be able to buy CDs through the service.

REDWOOD CITY, CA — Napster today announced it has appointed Konrad Hilbers to be the company’s new chief executive officer. Hilbers brings over a decade of corporate management experience to the service that has revolutionized the way the world listens to music. He succeeds Hummer Winblad Partner Hank Barry, who will remain on Napster’s board of directors. Hilbers’ first task will be to oversee the launch of Napster’s new membership-based service later this summer. He takes over from Barry, who assumed the CEO role on an interim basis in May 2000.

NEW YORK — The Blackstone Group has recruited Egidio (“Ed”) G. Robertiello, CFA, former President of Summit Fiduciary Services, LLC, to join Blackstone Alternative Asset Management (BAAM) as Managing Director within its manager selection team. BAAM is a leading hedge fund of funds with $2.3 billion under management. As President of Summit, an investment advisory firm for pension and benefit funds, Mr. Robertiello had direct oversight of over $6.0 billion in pension/retirement and charitable foundation assets for R.J. Reynolds Tobacco Co. and Nabisco, Inc. A key part of his role was evaluating, selecting and monitoring fund managers from all asset classes.

NEW YORK — KaVaDo Inc., a provider ofapplication-layer security solutions, today announced that it raised$3.7 million in second-round funding led by 3i Technology Partners, a leadinginternational venture capital firm. KaVaDo will use the funds to continue itsplan of aggressive, strategic growth in the rapidly expanding Web-applicationsecurity market.

For yesterday’s Wire, click here