Week in deals, June 23, 2008


Meritage Pharma Inc.

San Diego


Amount/Round: $22.5M/A

Investors: Domain Associates, Latterell Venture Partners, The Vertical Group.

Details: Develops drugs to treat allergic inflammation of the gastrointestinal tract.

Mpex Pharmaceuticals

San Diego


Amount/Round: $8.5M/NA

Investors: GlaxoSmithKline.

Details: Develops antibacterial drugs. The deal is part of a strategic partnership with GlaxoSmithKline. In addition to the $8.5M upfront investment, the company is due to receive a $6.5M equity investment and milestones worth between $200M and $250M. The company previously raised nearly $35M in VC funding from Western States Investment Group, Aberdare Ventures, HBM BioVentures, Adams Street Partners and SV Life Sciences.

Vaccsys Inc.



Amount/Round: $9M/A

Investors: Alta Partners, The Column Group,Versant Ventures.

Details: Develops vaccines. The funding is the first call down of an $18M Series A round, according to a regulatory filing.


Solarflare Communications Inc.

Irvine, Calif.


Amount/Round: $26M/NA

Investors: Oak Investment Partners, Foundation Capital, Accel Partners, Amadeus Capital Partners.

Details: Develops semiconductors for network and system connectivity. The company has now raised more than $125M in total VC funding since early 2001.


Lehigh Technologies Inc.

Naples, Fla.


Amount/Round: NA/NA

Investors: Kleiner Perkins Caufield & Byers, Index Ventures.

Details: Provides rubber recycling services to manufacture such products as tires, automotive parts and other consumer goods. The company raised an $18M round led by Natural Gas Partners early last year.


Funambol Inc.

Redwood City, Calif.


Amount/Round: $12.5M/B

Investors: Nexit Ventures (led), Castile Ventures, Walden International, HIG Ventures

Details: Develops open-source mobile application servers that provide push email and other communications services.


Answers Corp.

New York


Amount/Round: $13M/PIPE

Investors: Redpoint Ventures.

Details: Operates an online reference portal. The company previously raised about $32M in several rounds of funding from Dawntreader Ventures, Flatiron Partners, Garage Technology Ventures, Goldman Sachs and other investors.

i2we Inc.

Berkeley, Calif.


Amount/Round: $750K/A

Investors: IDG Ventures San Francisco.

Details: Develops social networking applications, such as I Am Green, I Am Happy, I Am Teacher and other “I Am” applications on Facebook. The company was founded by Karel Baloun, the first senior engineer at Facebook.

JazzD Markets Inc.

Brookline, Mass.


Amount/Round: $8M/A

Investors: Commonwealth Capital Ventures, Pilot House Ventures.

Details: A startup developing an online directory. The company is run by former Aberdeen Group CEO James Bedard.

LinkedIn Corp.

Mountain View, Calif.


Amount/Round: $53M/D

Investors: Bain Capital Ventures (led), Sequoia Capital, Bessemer Venture Partners, Greylock Partners.

Details: Operates a social networking company for businesspeople. The funding was at a valuation of about $1B. The company has now raised $80M in funding, including a $12.8M Series C round in early 2007 at a valuation of about $250M.

Wazoo Sports Inc.

London, Ky.


Amount/Round: $2M/NA

Investors: Meritus Ventures.

Details: Operates a high school sports broadcast network.


San Francisco


Amount/Round: $4.1M/B

Investors: Canaan Partners, ATA Ventures.

Details: Operates a social dating network. Deepak Kamra, general partner at Canaan Partners, has joined the board.


Control4 Corp.

Draper, Utah


Amount/Round: $20M/F

Investors: Foundation Capital, Frazier Technology Ventures, Thomas Weisel Venture Partners, vSpring Capital.

Details: Develops home control and entertainment system solutions. The company has raised more than $80M since 2003.


On Deck Capital Inc.

New York


Amount/Round: $100M/debt

Investors: Silar Advisors.

Details: Provides financing for small businesses that wouldn’t normally qualify for bank loans. The company previously raised VC funding from RRE Ventures, Village Ventures, First Round Capital, Khosla Ventures and Contour Venture Partners.


Cameron Health Inc.

San Clemente, Calif.


Amount/Round: $51.5M/E

Investors: PTV Sciences, Boston Scientific, Delphi Ventures, Sorrento Ventures, Three Arch Partners, Versant Ventures.

Details: Makes implantable devices for the treatment of cardiac disorders. Piper Jaffray served as placement agent. The company has now raised more than $130M since early 2001.


Neocleus Inc.

Jersey City, N.J.


Amount/Round: $11.4M/B

Investors: Battery Ventures, Gemini Israel Funds.

Details: Provides endpoint virtualization solutions. The company has raised more than $17M since December 2006.


ImageSpan Inc.

Sausalito, Calif.


Amount/Round: $11M/B

Investors: Bertelsmann Digital Media Investments (led), New York City Investment Fund, City Lights Capital Management, Ackerley Partners, Greycroft Partners, Village Ventures

Details: Develops licensing automation for digital content to settle royalty payments.

PSS Systems Inc.

Mountain View, Calif.


Amount/Round: $18M/D

Investors: FTVentures (led), Lightspeed Venture Partners, Azure Capital Partners, Granite Ventures, Cipio Partners.

Details: Develops software for the legal industry. The company, f.k.a. Pervasive Security Systems Inc., raised $16M in a Series A round in September 2001. Eric Byunn, partner at FTVentures, has joined the board.

RoundBox Inc.

Florham Park, N.J.


Amount/Round: $12M/C

Investors: Montagu Newhall Associates, Core Capital Partners, Polaris Venture Partners, RRE Ventures.

Details: Develops mobile broadcast software. The funding is the first call down of a $20M Series C round, according to a regulatory filing. The company previously raised $23M over two rounds.

Verticals onDemand

Pleasanton, Calif.


Amount/Round: $4M/A

Investors: Emergence Capital Partners.

Details: Develops customer relationship management software solutions.


ShotSpotter Inc.

Mountain View, Calif.


Amount/Round: $7.5M/D

Investors: The Westly Group (led), Norwest Venture Partners, Broidy Capital Management, Band of Angels, City Light Capital, Claremont Creek Ventures, Labrador Ventures, Lauder Partners, Levensohn Venture Partners.

Details: Provides gunshot location systems for the public safety and military markets. The company has raised more than $30M since 2006.





Amount/Round: $10M/NA

Investors: Greenspun Corp., Rally Capital, Hawkeye Capital.

Details: Provides managed telecom and Internet services.