Week in deals, Oct. 15, 2007


LS9 Inc.

San Carlos, Calif.


Amount/Round: $15M/B

Investors: Lightspeed Venture Partners (led), Flagship Ventures, Khosla Ventures.

Details: Develops hydrocarbon biofuels. The company has now raised $20M since last year.


APT Pharmaceuticals Inc.

Burlingame, Calif.


Amount/Round: $22M/A

Investors: Versant Ventures, Great Point Partners, Vivo Ventures, Charter Life Sciences.

Details: Develops drugs for the prevention of lung transplant rejection. Camille Samuels of Versant and David Kroin of Great Point have joined the board. The company has now raised $30M in funding.

Hyperion Therapeutics Inc.

San Francisco


Amount/Round: $15M/debt

Investors: Comerica Bank

Details: Develops drugs focused on gastroenterology and hepatology. The company recently raised $40M in second-round funding from Sofinnova Ventures, Highland Capital Partners, New Enterprise Associates and WRF Capital.

Metastatix Inc.

Tucker, Ga.


Amount/Round: $35M/B

Investors: Frazier Healthcare Ventures (led), H.I.G. Ventures, S.R. One, The Aurora Funds, Advanced Technology Development Center, CM Capital, MedImmune Ventures, Georgia Venture Partners, Centrosome Ventures.

Details: Develops drugs focused on treating cancer and HIV.

Nysa Membrane Technologies Inc.

Burlington, Ontario


Amount/Round: NA/B

Investors: Jove Investment Management, BDC Venture Capital.

Details: Develops a membrane-based platform technology for bioprocessing and bioanalytics.

Still River Systems Inc.

Littleton, Mass.


Amount/Round: $6.9M/C

Investors: Z-3 Investors, American Shared Hospital Services.

Details: Develops proton therapy solutions.


Staccato Communications Inc.

San Diego


Amount/Round: $17.5M/NA

Investors: Allegis Capital, Bay Partners, Charles River Ventures, Formative Ventures, Interwest Partners, Vision Capital.

Details: Develops ultrawideband and wireless USB communications chips. The company has now raised about $94M in total VC funding since 2003.


Luca Technologies Inc.

Golden, Colo.


Amount/Round: $14.6M/B

Investors: Kleiner Perkins Caufield & Byers, Oxford Bioscience Partners, BASF Venture Capital.

Details: Develops process of using microorganisms to convert domestic oil, organic-rich shale and coal resources into a clean, renewable energy. The funding is the first call down of a $20M Series B round, according to a regulatory filing.


Asoka USA Corp.

Foster City, Calif.


Amount/Round: $7M/A

Investors: Storm Ventures, Venrock.

Details: Provides powerline communications network solutions. The deal gives Asoka a PMV of $15M, CFO Jeff Chase told VentureWire.

CommPartners Connect

Las Vegas


Amount/Round: $11M/NA

Investors: PAR Capital Management.

Details: Provides local exchange services for small and mid-sized businesses. The company has now raised more than $57M in total VC funding.

Reflex Photonics

Redwood City, Calif.


Amount/Round: $3M/A

Investors: FIER Succes (co-led), MSBi Capital (co-led), RESO Investments.

Details: Develops high-speed connectivity solutions.

Send Word Now

New York


Amount/Round: $8.5M/C

Investors: Southpaw Asset Management (led), Ascend Venture Group.

Details: Provides on-demand alerting and response services using text messaging, telephones, mobile phones, email and handheld devices. The company has now raised about $20M to date.



San Francisco


Amount/Round: NA/NA

Investors: Alsop Louie Partners.

Details: Provides a website for lifecasting and live video streaming of events.

Mesmo Inc.

Oakland, Calif.


Amount/Round: $500K/A

Investors: Felices Ventures, Maples Investments.

Details: Develops a Facebook application that provides for social video sharing.


Brooklyn, N.Y.


Amount/Round: $1.5M/B

Investors: Union Square Ventures, Milestone Ventures, Village Ventures and individual investors.

Details: Develops local news and blog websites. Marc Andreessen reportedly did not re-up in the current round.


San Francisco


Amount/Round: $1M/seed

Investors: The Band of Angels, The Angels Forum.

Details: Operates as an online video advertising startup.

ReachLocal Inc.

Woodland Hills, Calif.


Amount/Round: $52M/D

Investors: Rho Ventures (led), Galleon Crossover Fund, VantagePoint Venture Partners.

Details: Provides online advertising solutions for local businesses. The company previously raised nearly $15M in funding.

The Rubicon Project

Los Angeles


Amount/Round: $4M/A

Investors: Clearstone Venture Partners.

Details: Provides an Internet advertising platform. The company also secured $2M in venture debt from Square1 Bank. The company was founded by Frank Addante, who was formerly CTO of L90.

Vidyo Inc.

Hackensack, N.J.


Amount/Round: $12M/B

Investors: Rho Ventures (led), Sevin Rosen Funds, Star Ventures.

Details: Provides high-def video conferencing over the Internet. The company raised $5M in early stage funding in 2005.

WeGame.com Inc.

San Francisco


Amount/Round: $500K/seed

Investors: True Ventures, The Hit Forge.

Details: The stealth company expects to provide a new product for online gamers. Jared Kim co-founded WeGame.com last year while still a freshman at UC Berkeley. He previously co-founded Xingu Software, an online platform that connected gamers across mainland China.


AngioScore Inc.

Fremont, Calif.


Amount/Round: $30M/E

Investors: Telegraph Partners led the deal, and was joined by return backers Psilos Group Management, QuestMark Partners, UV Partners, California Technology Ventures, Innomed Ventures.

Details: Develops angioplasty catheters for use in the treatment of coronary and peripheral artery disease. The company previously raised more than $45M in VC funding, including a $30M Series D round last year at a PMV of about $75M.

Apollo Endosurgery Inc.

Austin, Texas


Amount/Round: $11.5M/A

Investors: PTV Sciences, H.I.G. Ventures and individual investors.

Details: Develops medical devices for minimally invasive surgical procedures conducted through natural orifices, such as the nose. The company was incubated by PTV Sciences and initially funded through a seed grant from the University of Texas Medical Branch at Galveston in 2006.

CeraPedics Inc.

Lakewood, Colo.


Amount/Round: $15M/A

Investors: OrbiMed Advisors.

Details: Develops products for the orthopedic bone substitutes market. Medical Capital Advisors served as a placement agent.

Iasis Medical Inc.

Hastings, Minn.


Amount/Round: $1.5M/A

Investors: NA

Details: A medical device startup. The funding is the first close of an expected $10.5M Series A round, according to a regulatory filing. No investor information was disclosed, although Bill Younger of Sutter Hill Ventures is on the company board.

Optherion Inc.

New Haven, Conn.


Amount/Round: $37M/A

Investors: Quaker BioVentures, Domain Associates, Johnson & Johnson Development Corp., Purdue Pharmaceutical Products, Pappas Ventures, Biogen Idec New Ventures, GE Healthcare Financial Services.

Details: Develops products to diagnose and treat age-related macular degeneration.

Simplex Diabetic Supply Inc.

Brentwood, Tenn.


Amount/Round: NA/A

Investors: New Enterprise Associates.

Details: Supplies Medicare diabetes products. Chip Linehan and Ryan Durant of NEA have joined the board.

Spinal Restoration Inc.

Austin, Texas


Amount/Round: $16M/B

Investors: Santé Health Ventures, MB Venture Partners, Austin Ventures, Path4 Ventures.

Details: Develops a minimally invasive treatment for lower back pain.


ConSentry Networks Inc.

Milpitas, Calif.


Amount/Round: $21M/E

Investors: Teachers’ Private Capital (led), Translink Capital, NCD Investors, Sequoia Capital, Accel Partners, INVESCO Private Capital, DAG Ventures.

Details: Provides network security solutions. The company has now raised $72M in total VC funding.

FraudSciences Corp.

Palo Alto, Calif.


Amount/Round: $11M/B

Investors: Redpoint Ventures (led), BRM Capital.

Details: Provides online credit detection and protection.


San Diego


Amount/Round: $5M/D

Investors: Crescendo Ventures, Mission Ventures, Cipio Partners

Details: Provides content security technologies for pay-TV networks. The company has raised about $27M since 2005.


Comet Solutions

Albuquerque, N.M.


Amount/Round: $2M/A

Investors: Flywheel Ventures, Fort Washington Capital Partners Group, ITU Ventures, New Mexico Angels.

Details: Provides simulation software for product development.

MyBuys Inc.

Redwood City, Calif.


Amount/Round: $10M/B

Investors: Palomar Ventures (led), Lightspeed Venture Partners.

Details: Provides behavioral recommendation software for online retailers.


Woburn, Mass.


Amount/Round: $10M/B

Investors: Vertex Venture Capital (led), Carmel Ventures, Gemini Israel Funds.

Details: Develops managed account software products for the financial services industry. Elisheva Yakobovich, partner at Vertex Venture Capital, has joined the board.

SeaTab Software Inc.

Bellevue, Wash.


Amount/Round: $9M/B

Investors: Emergence Capital Partners (led), Trident Capital.

Details: Provides on-demand analytics for small and mid-sized businesses.


Catalyst Mobile

Emeryville, Calif.


Amount/Round: $10M/B

Investors: Sofinnova Ventures (led), DCM.

Details: Distributes entertainment content to handheld devices. The company previously raised about $4.5M.