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HolidayBuyer's Guide
Tech Industry

VC watch: TargetRx raises $10 million

Everest Broadband Networks closes its fourth round...DSL.net gets financing worth $15 million...TargetRx raises $10 million.

Which companies will be the trendsetters of the future? The following list is the latest news from start-ups here and abroad that have received venture funding. This page is updated frequently. Keep checking back for the latest.

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

Friday's deals

• Everest Broadband Networks closed its fourth funding round with backing from previous investors Pequot Capital Management and Exelon Capital Partners. The deal brings its total funding to $88 million, which includes a $50 million third round in January 2001 and a $17 million second round in March 2000. Softbank Venture Capital, Worldview Technology Partners and Wolfson Equities have also contributed to previous rounds. Everest provides high-speed Internet access, local and long-distance phone service, Web hosting, and audio conferencing services. The company also furnishes its customers with tools to build Web sites, e-commerce software and virtual private networks.

Last week's deals

• DSL.net, a provider of high-speed Internet access to small and medium-sized businesses, said Wednesday that it received new financing worth $15 million, which will be partially raised through the sale of convertible redeemable stock. The funding comes in addition to $15 million it received previously from VantagePoint Venture Partners. Investors including Columbia Capital, Charles River Ventures, Hunt Private Equity Group and National Investors Group will give DSL.net a $10 million package that includes the purchase of convertible stock and a bridge loan that will be repaid by the stock sale. Convertible stock is most commonly redeemed by the holder in the form of voting shares in a company or cash. DSL.net will receive the remaining $5 million once the VantagePoint investment deal closes in late February, and says the financing will fund the company through the third quarter of 2002.

• TargetRx announced that it raised $10 million from the sale of series C stock in its second round of venture capital funding. New investor Acacia Venture Partners led the round along with previous investors New Enterprise Associates and Domain Associates. TargetRx raised $12 million in the first round of funding June 2000. TargetRx runs a physician-only Web site that collects information from physicians about drugs that pharmaceutical companies purchase and use to develop, promote and market their products to the medical community. The Horsham, Pa.-based company says its customer base includes the majority of the top 20 companies in the pharmaceutical industry.

Previous deals

• Safewww has raised $5.3 million toward its second round, which it later hopes will reach $8 million. Cablevision Systems, Archery Venture Partners and Cohen & Co. were the latest investors, with Cablevision and Archery both receiving board seats. Uniondale, N.Y.-based Safewww has raised a total of $8.8 million. The company provides security software and services that not only require a name and password but also use digital identification unique to a consumer's computer.

• CorrectNet raised $5.25 million in a first round of funding. Investors included Edison Venture Fund, NewSpring Ventures and Charles Schwab. Hauppauge, N.Y.-based CorrectNet develops Web-based business software applications.

• Next Level Communications, a telecommunications gear maker, said it has received a $20 million loan from wireless technology giant Motorola. The $20 million is in addition to a $60 million loan Next Level got from Motorola earlier this year. Motorola owns about 75 percent of Rohnert Park, Calif.-based Next Level. The loan terms and conditions are substantially the same as the earlier financing, Next Level said, except that Motorola will be given an option to convert up to $20 million of debt into Next Level's next round of equity financing. The company did not say how it would use the additional funding.

• Santa Clara, Calif.-based chip start-up MediaQ raised an additional $10.7 million in funds as an extension of its third round of financing. The graphics chipmaker's latest financing comes from a variety of investors, including National Semiconductor. MediaQ hopes the relationship with National Semiconductor will open new doors. To start, the company hopes to pair its graphics chips with National Semi's display drivers or audio codecs, chips used to help display graphics or play music. Ultimately, MediaQ would like to collaborate on wireless technologies, such as GPRS (General Packet Radio System), said Elie Antoun, MediaQ's president. MediaQ's flagship MQ-1100 series of graphics chips work to offload duties such as graphics, memory management and screen refresh from a PDA's processor, speeding performance and reducing power consumption.

• VoIP Group, which provides communications services and Internet telephony software to calling-card companies, banks and others, has closed its second round of funding by raising $4.4 million. Venture capital firm ATG Ventures made the investment and will take a controlling stake in Miami-based VoIP.

• InTime Software has raised a $14 million fourth round of funding, co-led by Earlybird and WaldenVC. Other investors include Novus Ventures and Cadence Design Systems. Cupertino, Calif.-based InTime has raised a total of $25.5 million. The company's software is designed to allow semiconductor manufacturers to reduce the steps needed to get the chips to meet performance goals.

• Wavelink has raised a $10 million second round of funding. Investors included Washington Mutual and Digital Partners, and previous investors Whitney & Co. and Cascadia Capital. Both Washington Mutual and Digital will receive seats on Wavelink's board. Kirkland, Wash.-based Wavelink has raised a total of $19 million. The company develops wireless communications software to manage wireless networks.

• KaVaDo raised $6.8 million in a second round of funding, led by 3i. Other investors included Banc of America Equity Partners. New York-based KaVaDo has raised a total of $7.8 million. The company develops security software to protect Web applications.

• BetweenMarkets has raised a $3 million first round of funding, led by Trellis Partners. Other investors include Gideon Hixon Ventures and several individual investors. Austin, Texas-based BetweenMarkets develops software to help a company's buyers and suppliers exchange information in real time and control those relationships.

• Lane15 Software has raised $12 million in a second round of funding. Investors included Index Ventures, Quanta Computer, Convergent Investors, and previous investors AV Labs, Austin Ventures, Dell Ventures, Intel Capital and Lightspeed Ventures. Representatives from Index and Austin Ventures will both be joining Lane15's board. Austin, Texas-based Lane15 has raised a total of $22 million. The company develops software designed to increase the flexibility and reliability of data centers by connecting and managing companies' storage and communications networks and server clusters.

• Sabeus Photonics, an optical components company, said it has raised $16 million in a third round of funding. The company, which is a supplier to manufacturers such as Marconi and Alcatel Submarine, has raised a total of $24 million. The funding was led by TL Ventures. Digital Coast Ventures, CSFB Ventures and Redpoint contributed to the round. Sabeus says it will use the funds to market "high-concept" optical devices and to expand its manufacturing facilities.