Week in review: Yipes sold for $300M

Yipes, which was bought last week for $300M, is a head-scratcher of a story. The San Francisco-based provider of managed network solutions was founded in the late ‘90s and raised over $260 million, including a $61 million infusion in early 2001 at a post-money valuation of nearly $930 million, according to Thomson Financial (publisher of PE Week). Yipes fell during the dot-com bust and filed for Chapter 11 in 2002. It then reorganized and came back as it raised $100 million in equity from many returning and new investors.

It was bought last week for $300 million by Reliance Communications, which has the second largest number of mobile phone subscribers in India. The sale is not a bad deal for the later entrants, such as Crosslink Capital, which first invested after the company re-organized post-bankruptcy. But returning investors, such as Focus Ventures, New Enterprise Associates, Norwest Venture Partners and the Sprout Group, probably will write this one off.

VC-backed SunRocket crashes

SunRocket

, a Vienna, Va.-based Internet telephony company, shut down last week three years after it was launched. When co-founders Joyce Dorris and Paul Erickson, former MCI executives who were co-workers for over 10 years, started the company, they touted such benefits as unlimited domestic phone calling, enhanced voicemail, caller ID and smart call-forwarding.

The company raised about $80 million in venture funding, including a $9.25 million Series A round in 2004. Backers included Anthem Capital Management, BlueRun Ventures, Bru Venture Capital, DCM, The Grosvenor Funds and Mayfield Fund. Last week, Mayfield removed references to SunRocket from the portfolio section of its website.

Cooley Godward opens Boston office

Cooley Godward Kronish

has opened an office in Boston. The office features 10 Boston-based partners who came from other firms, including lead partner John Hession, who previously was with McDermott Will & Emery. Donald Fagen joins from Goulston & Storrs, and will lead Cooley’s business and tech practice in Boston, and its firm-wide private equity practice. —Alastair Goldfisher