Week in deals, Nov. 5, 2007


Acceleron Pharma Inc.

Cambridge, Mass.


Amount/Round: $31M/C

Investors: Bessemer Venture Partners (led), MPM BioEquities, QVT Financial, Advanced Technology Ventures, Flagship Ventures, OrbiMed Advisors, Polaris Ventures, Sutter Hill Ventures, Venrock.

Details: Develops drugs focused on muscle growth and bone growth treatments. The company has now raised about $87M in total VC funding.

Allozyne Inc.



Amount/Round: $30M/B

Investors: MPM Capital (led), OVP Venture Partners, Amgen Ventures, ARCH Venture Partners, Alexandria Real Estate Equities.

Details: Develops drugs to treat Multiple Sclerosis. The company was formed in 2005 under the auspices of VC-backed incubator Accelerator Corp., and raised under $4M in Series A funding at a PMV of about $8.6M.




Amount/Round: $300K/seed

Investors: BioCrossroads’ Indiana Seed Fund I

Details: Develops treatments for lung disease.

Paratek Pharmaceuticals Inc.



Amount/Round: $22M/H

Investors: Aisling Capital (led), D.E. Shaw, Boston Life Science Venture Corp., Pacific Growth Equities, Nomura Phase4 Ventures, Novartis BioVentures, BioFund Ventures, HBM BioVentures, Lombard Odier Darier Hentsch, BioVeda Fund, Hercules Technology Growth Capital.

Details: Develops drugs focused on antibiotic resistance. The funding is the first tranche of a $40M Series H round. The second tranche is expected to close in early 2008. Dr. Anthony Sun, principal of Aisling Capital, has joined the board.

Relypsa Inc.

Santa Clara, Calif.

www relypsa.com

Amount/Round: $33M/A

Investors: 5AM Ventures (co-led), New Leaf Partners (co-led), Sprout Group, Delphi Ventures, CMEA Ventures, Mediphase Venture Partners.

Details: Develops polymeric drugs to treat cardiovascular and renal diseases. The company is a spinout of Ilypsa, which had raised venture funding from many of the same firms before Amgen acquired it this year for $420M. Scott Rocklage, managing partner of 5AM Ventures, will head the company’s board as executive chairman. Also joining the board are Vijay Lathi, managing director of New Leaf Venture Partners, Deepa Pakianathan, general partner of Delphi Ventures, and Jay Shepard and Jay Hagan of Amgen Ventures.

WellGen Inc.

North Brunswick, N.J.


Amount/Round: $9.5M/C

Investors: Amphion Innovations.

Details: Uses nutrigenomics to develop food ingredients for wellness products. The company has now raised $12.5M from Amphion and an undisclosed amount of Series A funding from Danisco Venture.


Monrovia, Calif.


Amount/Round: $15M/E

Investors: Oxford Bioscience Partners, Merlin Nexus, Novo Nordisk, MedImmune Ventures, HealthCare Ventures, Zen Investments.

Details: Develops protein therapeutics and antibody drugs. The Series E round now stands at $60M, including a $45M first close in October 2006. The company has now raised more than $145M in total VC funding since its 1997 inception. Douglas Fambrough, general partner of Oxford Bioscience Partners, has joined the board.


Serious Materials

Sunnyvale, Calif.


Amount/Round: $50M/NA

Investors: New Enterprise Associates, Foundation Capital, Rustic Canyon Partners.

Details: Develops eco-friendly drywall.

Solarflare Communications Inc.

Irvine, Calif.


Amount/Round: $14.8M/A

Investors: Oak Investment Partners, Foundation Capital, Accel Partners, Acacia Capital Partners, Amadeus Capital Partners, Anthem Venture Partners.

Details: A fabless semiconductor company focused on Ethernet products. This is the company’s second round of VC funding since merging with Level 5 Networks 18 months ago. The company also secured more than $15M in venture debt from Hercules Technology Growth Capital.


Hidden City Games Inc.



Amount/Round: $15M/B

Investors: Trinity Ventures, Rustic Canyon Ventures.

Details: Makes collectible trading card games. CEO Peter Adkison founded Wizards of the Coast, which created collectible Pokémon trading cards, and which Hasbro bought for $500M.


Semtek Innovative Solutions Corp.

San Diego


Amount/Round: NA/A

Investors: RRE Ventures (co-led), Venrock (co-led), VeriFone Holdings Inc.

Details: Provides a point-of-sale device hardware component that eliminates the need for payment card data. Douglas Bergeron, chairman and CEO of VeriFone, Rich McGinn, general partner at RRE Ventures, and Mike Brooks, general partner at Venrock, have joined the board.

Shipwire Inc.

Sunnyvale, Calif.


Amount/Round: $4M/A

Investors: Meakem Becker Venture Capital.

Details: Provides solutions for storing and shipping merchandise bought and sold online. David Becker and Glen Meakem, co-founders and managing directors of Meakem Becker, have joined the board. The company was founded by CEO Damon Schechter, author of “Delivering the Goods: The Art of Managing Your Supply Chain.”


ImageTree Corp.

Morgantown, W.V.


Amount/Round: $4.5M/B

Investors: Battelle Ventures, PA Early Stage Partners, West Virginia Jobs Investment Trust Board, The Conservation Fund’s Natural Capital Investment Fund, Innovation Valley Partners.

Details: Provides forestry inventory management.

Optimal Technologies International Inc.

San Francisco


Amount/Round: $25M

Investors: Goldman Sachs.

Details: Provides solutions to help power utilities, businesses and consumers maximize their energy usage. The deal includes a $13M up-front payment, and up to another $12M in earn-outs.


Apollo Mobile Media Inc.



Amount/Round: $1.2M/A

Investors: Madrona Venture Group, Trilogy Equity Partners.

Details: A startup that is developing an Internet mobile consumer social shopping service.


San Francisco


Amount/Round: $2M/seed

Investors: Adobe Systems and individual investor Will Hearst.

Details: Provides an online forum to discuss current events. TechCrunch described the site as wanting to be the C-Span of the Web.




Amount/Round: $9.5M/A

Investors: Panorama Capital (led) and undisclosed strategic investors.

Details: Provides Internet television infrastructure.

JibJab Media Inc.

Santa Monica, Calif.


Amount/Round: $3M/B

Investors: Polaris Venture Partners.

Details: Produces digital comedy shorts. No financial terms were disclosed, but peHUB.com (an affiliated publication of PE Week) reported it was $3M. The funding comes on top of a Series A round that a regulatory filing indicates was worth nearly $6.4M.


Newton, Mass.


Amount/Round: $2M/A

Investors: Atlas Venture, CommonAngels, Massachusetts Technology Development Corp.

Details: Operates websites to help users find user manuals and other self-support information for a range of consumer products. The company was founded by former executives of Boston’s Bitpipe Inc., a network of IT and business websites acquired by Needham’s TechTarget for $40M in 2004.

PicksPal Inc.

Mountain View, Calif.


Amount/Round: $3M/C

Investors: Bay Partners, Canaan Partners.

Details: Provides an online sports gaming service.

Vitrue Inc.



Amount/Round: $10M/B

Investors: Dace Ventures (led), Comcast Interactive Capital, Turner Broadcasting, General Catalyst Partners.

Details: Provides video-centric social media services. The company has raised more than $15M since early 2006.

vMix Media Inc.

San Diego


Amount/Round: $16.5M/B

Investors: ATA Ventures, JK&B Capital, Mission Ventures, Enterprise Partners.

Details: Operates a social networking site for users to share videos, photos and music. The company has raised $27M since early 2006.


New York


Amount/Round: $5M/A

Investors: DFJ Gotham Ventures (led), Milestone Venture Partners, High Peaks Venture Partners.

Details: Operates an online booking engine for meeting space in hotels, airport lounges and other venues. Jed Katz of DFJ Gotham and Ethan Ayer of Milestone have joined the board. High Peaks’ Brad Svrluga will serve as board observer.


Arteriocyte Medical Systems Inc.



Amount/Round: $10M/NA

Investors: Arteriocyte Inc., DW Healthcare Partners.

Details: Develops novel medical products to improve patient outcomes in cardiac, orthopedic and vascular surgeries. Don Brown, who has served as CEO of stem cell company Arteriocyte since June 2004, will run the new company. DW Healthcare’s Dr. Jay Benear, Rod Boone and Doug Schillinger will join the new company’s board.

Intelligent Hospital Systems

Winnipeg, Canada


Amount/Round: $7.6M/NA

Investors: BDC Venture Capital (led), Western Life Sciences Venture Fund, Wellington West Capital.

Details: Makes medical devices focused on automated solutions for the hospital environment. The investment includes private equity and debt funding. BDC Venture Capital led the deal with a $3M infusion.

Tactile Systems Technology



Amount/Round: $11.8M/NA

Investors: Galen Partners.

Details: Makes products to treat vascular diseases, such as lymphedema.

Vitreo Retinal Technologies Inc.

Irvine, Calif.


Amount/Round: $12M/A

Investors: De Novo Ventures.

Details: Develops diagnostic and therapeutic systems for the treatment of ocular diseases. The Series A deal included about $9.4M in preferred stock, and $2.6M in warrants.


Mainstream Data Inc.

Salt Lake City


Amount/Round: $880K/A

Investors: NA

Details: Makes networking products. The company is seeking to raise about $1M, according to a regulatory document.


Avectra Inc.

McLean, Va.


Amount/Round: $26.5M/A

Investors: Sterling Venture Partners (led), HarbourVest Partners.

Details: Provides on-demand software for membership management. The company was founded in 1993, though this is its first outside funding.

BDNA Corp.

Mountain View, Calif.


Amount/Round: $20M/D

Investors: Rising Tide (led), Crescendo Ventures, Flagship Ventures, Motorola Ventures.

Details: Develops IT management software.

Harmony Information Systems Inc.

Reston, Va.


Amount/Round: $28M/debt and equity

Investors: JMI Equity (co-led), Updata Partners (co-led), Orix Venture Finance, Comerica Bank.

Details: Provides software solutions for the health and human services sector. Orix Venture Finance and Comerica Bank provided the debt. John Burton, managing general partner of Updata, will join Updata General Partner Tim Meyers and JMI General Partner Brad Woloson on the board.

Interactive Supercomputing Inc.

Waltham, Mass.


Amount/Round: $11M/B

Investors: Ascent Venture Partners (led), Fletcher Spaght Ventures, Flagship Ventures, Rock Maple Ventures, CommonAngels.

Details: The company develops software that helps scientists, engineers and analysts build algorithms and models on their desktops using familiar mathematical tools, and then run them instantly and interactively on parallel computers with little to no modification. The company has now raised $18M in total VC funding.


Dataupia Inc.

Somerville, Mass.


Amount/Round: $16M/B

Investors: Fairhaven Capital Partners, Polaris Venture Partners, Valhalla Partners.

Details: Provides enterprise computing data management solutions. The company raised $10M in Series A funding in early 2006.

OnLive Inc.

Palo Alto, Calif.


Amount/Round: $16.5M/B

Investors: Maverick Capital, Warner Brothers.

Details: Provides data and networking storage.


EchoSign Inc.

Palo Alto, Calif.


Amount/Round: $6M/B

Investors: Emergence Capital (led), Storm Ventures.

Details: Provides a signature automation services to approve business documents online. The company raised $2.5M from Storm Ventures in late 2005.

Inrix Inc.

Kirkland, Wash.


Amount/Round: $15M/C

Investors: August Capital, Bain Capital Ventures, Venrock.

Details: Provides traffic flow information in the United States. The company previously raised about $16M.


Imagine Communications

Cardiff By The Sea, Calif.


Amount/Round: $15M/B

Investors: Court Square Ventures (led), Columbia Capital, Carmel Ventures.

Details: Provides digital video platforms. The company has now raised just under $25M in total funding. James Murray Jr., managing general partner at Court Square Ventures, has joined the board.


4Info Inc.

Palo Alto, Calif.


Amount/Round: NA/NA

Investors: Peacock Equity.

Details: Provides search services and text messaging for mobile devices. Investor Peacock Equity invests from a $250M venture fund formed earlier this year from a partnership between GE and NBC Universal. As part of the deal, the company will become NBC Universal’s preferred mobile SMS advertising partner. 4Info previously raised about $28M from Draper Fisher Jurvetson, U.S. Venture Partners, Sand Hill Capital and Gannett Co.