Private Equity Week Wire for Wednesday 10/24

SAN JOSE, CA — 2Wire Inc., the leading provider of residential gateways, today announced the completion of its latest round of financing totaling $61 million, with co-lead investors Technology Crossover Ventures (TCV) and Oak Investment Partners. 2Wire has raised a total of $144 million in equity investments to-date since the company’s founding in July 1998. Lead investors for this round were Technology Crossover Ventures, a multi-stage venture capital firm and new investor in 2Wire, and Oak Investment Partners. Other new investors include Pilgrim Baxter & Associates and Shell Internet Ventures. Returning investors include Accel Partners, DCM (Doll Capital Management), the INVESCO Private Capital Group, Meritech Capital, and Venrock Associates.

CAMBRIDGE, MA — Systinet, a leading provider of Web Services infrastructure software, today announced the successful completion of $2.3 million of seed-round financing. The financing was led by Windcrest Partners, and includes 3TS Venture Partners, Robin Neustein, and entrepreneur and e-business expert Esther Dyson. The proceeds of the investment will be used to extend the development of the company’s Web Services platform and to expand sales and marketing efforts. As part of this expansion, the company has opened headquarters in Cambridge, MA, and has changed its name from Idoox Inc. to Systinet Corp.

SUNRISE, FL — WildCard Systems, the leader in delivering stored-value e-payment solutions, today announced it has received $14.5 million in venture capital funding. Sutter Hill Ventures lead the equity investment in this latest round of funding with participation from management and other existing investors including WW Ventures, Cleveland Pacific Equity Ventures, LLC, and Meriken Nominees. With this round of financing, WildCard Systems is well capitalized to continue both the development of new product solutions and the build-out of its infrastructure to meet the demands of its rapidly growing business.

WALTHAM, MA & PALO ALTO, CA – In a move aimed at further accelerating the pace of technology innovation in Canada, Advanced Technology Ventures (ATV) today announced that Brian Hanson, an Ontario native and U.S. investment banking veteran with extensive experience in the communications industry, has joined the firm as a venture partner. Hanson will primarily focus on ATV’s strategic expansion in Canada, and also support ATV’s investment activity in New York and New Jersey.

Previously, Hanson was Managing Director and Co-Head of Mergers and Acquisitions at UBS Warburg LLC, where he managed the business from a small start up through a period of rapid growth and success. There, he specialized in the communications industry and worked with the world’s leading telecom carriers and equipment companies. Hanson has also held executive-level positions at Morgan Stanley and Gleacher & Co. Hanson holds an MBA from Stanford, where he graduated with Distinction as an Arjay Miller Scholar and an undergraduate degree in business from the University of Western Ontario with Dean’s List Honors.

MINNEAPOLIS — PageLab Network Inc., (OTC Bulletin Board: PGBN), a Minneapolis-based technology company, most noted for its Subjex dialogue solutions, announced today a $300,000.00 funding package signed with NRG Venture Strategies, LLC, Bloomington, Minn. Placed in escrow and paid in installments for eight to ten months, this funding deal allows PGBN to quickly build upon recurring revenue streams from licensing. Now focused on its new product line, the Virtual Customer Service Representative licensed to medium and small sized companies with in bound call centers. The funding will be used to execute quickly on more local implementations of the VCSR software, then to expand to larger markets, providing a solid track record for giving its clients significant ROI.
WARREN, NJ — GAIN Capital, the premier source for online currency trading (, announced today the close of their Series B round and receipt of funding from prominent U.S. venture funds Edison Ventures, Cross Atlantic Capital Partners, and Blue Rock Capital.

BOSTON — Boston Millennia Partners is pleased to announce that Robert Mashal, M.D. has joined the firm as a Partner. Robert will help Millennia continue to expand its efforts in finding quality investment opportunities in the healthcare and life sciences sectors. Robert joined Boston Millennia Partners from Vertex Pharmaceuticals (VRTX) where he was Program Executive for the MDR program, and a member of the Joint Research Committee for the $800 million Vertex-Novartis kinase collaboration. At Vertex, he gained extensive experience in overseeing drug discovery and development programs, and implementing strategic business partnerships.

CAMBRIDGE, MA — Avaki Corp., a leader in thedevelopment of grid software to enable resource sharing across large- scale,highly distributed computer networks, today announced a $10 million secondclosing of its series A financing by Polaris Venture Partners, GeneralCatalyst and Sofinnova. This brings the overall company investment to $16million, led by Polaris Venture Partners. AVAKI closed the first round of $6million in June 2001.

CAMBRIDGE, MA — TolerRx Inc., a biopharmaceutical company specializing in the discovery and development of therapies that induce and maintain immunological tolerance, today announced the completion of its Series B financing that will finance the development of its lead product and the expansion of its research programs, including the TolerMab(TM) antibody platform. Led by current investor HealthCare Ventures, the $17 million financing includes new investors Skyline Ventures, Rho Ventures and Vertex Management.

WOBURN, MA — Nantero announced today that it received a first round of investment to develop a nanotube-based universal memory. Investors included Draper Fisher Jurvetson, a leader in nanotechnology investing, along with East Coast semiconductor investor Stata Venture Partners. Also participating in the round were Harris and Harris Group from New York, an early investor in Nanophase (Nasdaq: NANX), and Alex d’Arbeloff, Chairman of MIT and founder of Teradyne (NYSE: TER), who joins Nantero’s Board of Directors.

READING, ENGLAND — Information management specialists, kVault Software Plc (“KVS”), announces that it has raised third round funding of $13 million USD (9 Million Pounds Sterling U.K.) in Series A Preference shares. In less than two years, the Company has established a market leading position with Enterprise Vault, one of the industry’s most comprehensive email management systems to manage, archive and retrieve the spiraling volumes of corporate email messages and other unstructured information. Since its formation in November 1999, the Company has made sales to more than 50 blue chip customers, established a direct sales and support presence in the UK, US, Europe and Australia and secured global strategic partnerships.

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