InFlow receives $35 million

Has your company just completed a round of financing or received other venture capital support? E-mail the editors at News.com.

Recent Deals

• Inflow attracted $35 million in its fifth round of funding. Inflow Chief Financial Officer Jim McHose said 40 percent of the funding came from new investors, including venture capital firms such as Telecom Partners, Centennial Ventures and Meritage Private Equity Funds. Previous investors such as Spire Capital Partners, Halyard Capital Fund, Stolberg Equity Partners and Cornerstone Equity Investors also participated in the new round. The Thorton, Colo.-based company provides Web hosting and IT outsourcing services to businesses and will use the new financing to enhance its products. Investors in the recent round now own preferred stock in the company, while investors in the first four rounds, who contributed about $263 million, will have their shares converted to common stock from preferred stock. McHose said the company structured the deal in this manner to simplify its financial structure. Owners of preferred shares usually have a claim to earnings and assets in the event of liquidation before common stockholders.

• KnowledgeNet has raised $17.5 million in its fifth round of funding, bringing the company's total funding to $82 million. New investor General Motors Investment Management led the round and was joined by the company's previous investors, including Cisco Systems, Morgenthaler Ventures, Sierra Ventures, Trinity Ventures and Berkeley International Capital. KnowledgeNet develops and supplies corporate training content and software to businesses. The Phoenix-based company will use the new funding to hire more employees, develop products, expand its sales and marketing abilities, and broaden its services within the business sector.

• Captura raised $15 million in debt and equity financing. Previous investors such as the Sprout Group, Oak Investment Partners, Merrill Lynch, Westbridge and Voyager Capital contributed to the equity portion of the round while Captura arranged the debt financing through Silicon Valley Bank. The Kirkland, Wash.-based company said the recent funding will help bring its cash flow to positive levels later this year and will also allow it to market its products to small and medium-sized businesses. Captura provides Web-based expense management services to business customers that include General Motors, Ericsson and Aetna Life Insurance.

• Sandbridge Technologies raised $14 million in its first round of funding. Bessemer Venture Partners, Atlas Venture and Columbia Capital all contributed to the round. The White Plains, N.Y.-based company will use the financing to market and develop its products, which are chips for mobile phones that run on 3G, or third-generation, technology.

• Resonext pulled in an additional $14 million for its third round of funding. The San Jose, Calif.-based company announced last March that it raised $25 million for the initial stage of the third round. Its total funding is now $68.5 million. Resonext will use the financing to continue to develop and bring its products into production and also to expand its sales and marketing efforts. The company makes chips for equipment that power wireless LANs (local area networks). New investors such as Crimson Ventures, Hotung Capital Management, Asia Tech Group, Manitou Ventures and Infinity Global Investments helped supply the extra funding for the round along with old investors Norwest Venture Partners, WK Technology Fund and Oak Investment Partners.

• Online music service FullAudio received $13.5 million in new funding and struck a licensing deal with Bertelsmann's BMG, its fourth major record label. Chicago-based FullAudio said the third round of funding brings the company's total investments to $36 million, which will be used to expand its business development, marketing and digital music subscription services. FullAudio also said it will offer Bertelsmann Music Group's catalog of songs through its online music subscription service, MusicNow. FullAudio said subscribers will be able to download songs from BMG artists including Whitney Houston, Christina Aguilera and Usher. FullAudio also has licensing deals with EMI Recorded Music, Universal Music Group and Warner Music Group.

• Httprint raised $12 million in a fifth round of funding led by Investcorp SA and Bertelsmann Capital Ventures. The San Francisco-based company will use the financing to expand company operations in New York and Germany, develop new software products, and enhance services to current and potential customers. Httprint, formerly known as Landmark Productions, provides procurement software and business-to-business services that help companies control their printing costs.

• mPower raised $7.8 million in its most recent financing round. Previous investor Capital Z Financial Services Fund led the round along with other past investors such as Norwest Venture Partners, Allegis Capital and Northwestern Mutual. All four companies contributed to < ahref="http://www.mpower.com/">mPower's $36 million round in January 2001, which was led by Reuters Group. The online investment advice provider will use the funding for expansion and to introduce new products.

• Applied Messaging raised a $7.4 million first round of funding from North Bridge Venture Partners and Polaris Venture Partners along with participation from a small number of individual investors. As part of the deal, North Bridge and Polaris have each received a seat on the company's board of directors. Applied Messaging was founded last January and is developing instant messaging software for businesses. The Winchester, Mass.-based company will use the funding to develop its products and build up its sales and engineering teams.

• Software maker Qiva received an additional $7 million for its third round of funding from VantagePoint Venture Partners, bringing the total for the round to more than $24 million. The funding adds to the $17.2 million the company initially raised for the third round last April from WaldenVC, Bessemer Venture Partners, JAFCO America Ventures and Symphony Technology Group. Qiva makes software that helps businesses manage global supply chains and its customers include Liz Claiborne, Pacer International and Synopsys. The San Francisco-based company will use the financing to expand its sales and marketing activities.

• Nauticus Networks added an additional $5 million from Advent International in its second round of funding and has closed the round at $26 million. The company makes networking equipment for business data centers and will use the recent funding to expand its sales, marketing and engineering activities. Advent contributed $1 million last April in the initial closing of the second round, which totaled $21 million. Advent joined other investors in April, including Charles River Ventures, Matrix Partners and North Bridge Venture Partners--the three venture capital firms that also funded the company's $12.5 million first round in February 2001. Framingham, Mass.-based Nauticus has raised more than $38 million since its founding in October 2000.

• Nokia Venture Partners contributed $5 million to WiderThan.com, its first investment in Asia. The South Korea-based company develops content and services such as voice portals and video-on-demand for Internet-enabled cell phones. WiderThan.com plans to use the financing to develop and market products related to its voice, messaging, multimedia and mobile commerce technology. Nokia Venture Partners is a VC firm mostly backed by Nokia, a maker of mobile phones and wireless equipment. The firm, which has $650 million under management, announced that it opened an office in Seoul, South Korea.