Erin Kutz wrote:
Spinal implant developer Intrinsic Therapeutics has pulled in $18 million of a $20 million mixed offering of equity, options, and warrants, according to a filing with the SEC. Existing Intrinsic investors New Enterprise Associates, Spray Venture Partners, and New Leaf Venture Partners are listed as directors on the filing. The Woburn, MA-based company, which produces a prosthetic to treat disc herniation, closed a $21 million Series D round in summer 2007.
Erin Kutz wrote:
Earlier this month, we wrote about some of the mammoth venture deals that helped add up to $355 million worth of investments in Massachusetts startups in January. But don’t think we’ve forgotten about the little guys.
These are what we call our under-the-radar deals, typically worth between $100,000 and $1 million (though the January list contains a deal smaller than that). Those numbers, tracked by New York-based private company intelligence platform CB Insights, are in now, and we think they have a lot to tell us about what’s going on in the innovation scene.
We look at both equity and debt forms of financing on this list, and see their smaller dollar values as valuable indicators of the New England startup landscape. The reports often tell us which new companies are about to emerge out of stealth mode or spin out a new product, and frequently these end up being companies we highlight in bigger stories later on down the line.
There were 13 of these financings in the month of January, with eight in equity, four in debt-based funding, and one that represents a security to be acquired through the exercise of option or warrants, according to the SEC filing. Software and cleantech companies showed up prominently on the list.
December saw a higher number of under-the-radar financings (21), but January had some bigger-sized deals than the month before it. There were three million-dollar financings on January’s list, with $1 million in debt to security software company eIQnetworks, $1 million in equity to DNA mapping company U.S. Genomics, and another $1 million in equity to Green Earth Technologies, developers of biodegradable patent-pending motor oil, as well as other home and lawn products.
As usual, Massachusetts took the biggest share of these deals, at 10. Connecticut pulled in two such deals, and New Hampshire had …Next Page »
Erin Kutz wrote:
Diagnostics company Magellan Biosciences announced today it has appointed a new president and CEO, Hiroshi Uchida. Most recently serving as executive VP, CTO, and a member of the board of directors of blood transfusion technology company Fenwal, Uchida said he plans to improve partnerships and accelerate investments in development projects for Chelmsford, MA-based Magellan, which has products in lead poisoning, food safety, and autoimmune testing.
Erin Kutz wrote:
Jon Carson describes the newest offering on his website, BiddingForGood.com, as the idea he is most proud of in his “entire startup life.”
“It solves a real problem. It makes something efficient,” says Carson, whose previous entrepreneurial efforts include a keg delivery startup he ran while at Babson College, and FamilyEducation Network, a Web portal he sold to Pearson Education.
The “something” Carson aims to make more efficient is the process of requesting items from businesses for charity auctions or fundraising events. Both sides have complaints about the process, he says. Most merchants—typically restaurants and hotels—solicited for donations to charity auctions have no way of efficiently organizing and responding to the myriad requests they get for things like gift certificates and complimentary stays. Charities often submit their requests with missing information and in turn complain that they never hear back on their queries, Carson says
Cambridge, MA-based BiddingForGood, which Carson describes as an eBay for charity auctions, is trying to improve this situation with the release of its Auction Item Request System (AIRS). The system creates forms that a charity seeking a donation can fill out on a business’ website, detailing specifically what it wants for its auction, and all of its contact information. The AIRS system responds immediately with an automated e-mail confirming the company’s receipt of the donation request, and later on with an e-mail either approving or denying the solicitation. It’s being used by businesses such as Boston’s Liberty Hotel, The Four Seasons, retailer Brooks Brothers, and San Francisco’s Aquarium of the Bay.
If the BiddingForGood website is the eBay of charity auctions, then the AIRS segment of the business is the OpenTable of donation requests, Carson says, transforming what was previously a loose leaf tracking process to a centralized database. Donors can track the groups they’ve aided, the dollar value of their donations, and the exposure of their products at the auctions.
BiddingForGood is giving its AIRS product to businesses for free, because it’s solving a problem for BiddingForGood, too, Carson says. It helps the startup consolidate the list of nonprofits and auction donors out there, a pool it depends on for its revenue stream (more on that in a moment). “The market is very fragmented,” Carson says, explaining that most charity auctions are run by volunteers with high turnover. His sales team can chase after potential customers when they request an item using the AIRS system, which also advertises BiddingForGood’s other services and allows users to directly request information on the company.
Originally named cMarket and backed by Canaan Partners and Morningside Technology Ventures, the company started in 2003 as a way to more efficiently execute silent auctions for charities. It originally hosted online versions of real-world silent auctions, often a week or so before the actual charity event in order to open them to a wider pool of bidders. The startup eventually noticed …Next Page »
Erin Kutz wrote:
Despite the Presidents Day holiday, it’s been a big life sciences week for us.
—A new venture fund is being assembled by the founders of Cambridge, MA-based Sirtris Pharmaceuticals, a developer of treatments for aging-related diseases that went to GlaxoSmithKline for more than $700 million in 2008. Christoph Westphal, Michelle Dipp, and Rich Aldrich have pulled in $50.7 million from 24 undisclosed investors for their Longwood Founders Fund, according to an SEC filing.
—Helicos Biosciences (NASDAQ:HLCS) president Steve Lombardi has resigned, the Cambridge-based company disclosed in a regulatory filing last Friday. Lombardi officially concluded his full-time work and his role on the Helicos board on February 11, but will continue to earn his salary through August. Helicos, which makes genetic analysis instruments, didn’t disclose the reasons for Lombardi’s departure, but said it wasn’t due to a conflict with company policies.
—Luke caught up with the CEO of Rib-X Pharmaceuticals, a New Haven, CT-based antibiotic developer that’s raised $35 million in the last year. The company is hoping to get help from a Big Pharma company on a trial for its top drug candidate, which should lead to an application with the FDA to market the drug in 2012, if all goes well.
—Ryan looked at the bumpy ride experienced by Lantheus Medical Imaging, a North Billerica company once owned by Bristol-Myers Squibb. The firm’s big focus is on new products like its contrast agent for diagnosing cardiovascular diseases, but it struggles to gain the name recognition that its previous owner had.
—Cambridge-based social networking site PatientsLikeMe announced that it acquired ReliefInsite, an online pain management firm that helps patients track their pain levels and share them with doctors. The move comes just after PatientsLikeMe’s West Coast rival, Keas, brokered a deal with Pfizer (NYSE:PFE) to expand the use of its health-monitoring software.
—The Carl Icahn story continues. The big biotech investor known for gobbling up shares at companies such as Biogen Idec (NASDAQ:BIIB) and Amilyn Pharmaceuticals (NASDAQ:AMLN) has taken a bigger stake in Cambridge’s Genzyme (NASDAQ:GENZ), increasing his holdings from 1.5 million shares in fourth quarter of 2009 to 4.6 million shares earlier this month.
—Eleven Biotherapeutics roared out of stealth mode with a $35 million Series A round, Luke reported. The Cambridge company, which looks to engineer protein treatments for blood clot disorders and autoimmune diseases, also has assembled a team of big names from the biotech and venture worlds.
—Providence, RI-based NABsys nabbed $7 million in Series B funding led by Stata Venture Partners, run by Analog Devices co-founder and chairman Ray Stata. NABsys, whose DNA sequencing technology hinges on semiconductor innovations, will use the funding from Stata to develop a platform intended to streamline the reading of DNA chains.
—Ryan wrote about healthcare software provider Sentillion’s entry into the big leagues with its acquisition by Microsoft (NASDAQ: MSFT). Few aspects of Andover, MA-based Sentillion’s business have changed since the access management software company became part of Microsoft’s health and life sciences unit, says CEO Robert Seliger, who will stay on as a general manager.
Erin Kutz wrote:
Robotics and communications startup North End Technologies has raised $2.5 million in new funding and converted $1.8 million in preexisting debt to equity, said company CEO Brad Kayton. The new funding came from previous investors Waltham, MA-based Castile Ventures, company executives, and angel investors, and will be used to take the stealthy Nashua, NH-based company’s product to market, Kayton said. An SEC filing posted today indicates that North End has sold $3.3 million in the offering, but Kayton said that between the new funding and the debt conversion the company has actually reached the total round amount of $4.3 million.
Erin Kutz wrote:
Nuance Communcations (NASDAQ: NUAN), a Burlington, MA-based voice and imaging software company, has acquired a maker of speech recognition software for Apple’s Macintosh computers, MacSpeech, the company announced today. The acquisition of Salem, NH’s MacSpeech will extend Nuance’s Dragon NaturallySpeaking product line, which translates voice to text, as a native Mac application. Nuance has also had a footprint in Mac products through its Dragon Dictation and Dragon Search mobile apps for iPhone, which enable users to view text messages, e-mails, and website search results by speaking.
Erin Kutz wrote:
Boston-based MPM Capital, an investment firm focused on life sciences companies, has raised $140 million for its fifth BioVentures fund, according to regulatory filings. Earlier reports pegged the deal at $69.1 million, but the company amended its original filing this afternoon to indicate the higher total. The firm declined to comment further on the new funding. MPM’s $552 million BioVentures IV fund led a $35 million series B round at the end of January for Alnara Pharmaceuticals, a Cambridge, MA, developer of protein-based treatments for metabolic diseases.
Erin Kutz wrote:
Billerica, MA-based NEXX Systems, a manufacturer of semiconductor equipment, has filed for an initial public offering that could be worth as much as $42 million. The filing lists the company’s top stakeholders as Enterprise Partners, Sigma Partners, and NEXX chairman Richard Post. Canaccord Adams and CIBC will co-lead the undewriting for the IPO; the price and number of shares to be offered have not been revealed.
Erin Kutz wrote:
Excelimmune, a Woburn, MA developer of human antibody-based therapies, announced that it has raised $1 million in Series B funding from a group of existing and new investors. The funding will go to research for its first drug candidate, Staphguard, designed to treat methicillin-resistant staph infections. Greenheart was the sole investor in Excelimmune’s 2007 Series A round.
Erin Kutz wrote:
Advanced RenewableEnergy Company, a Nashua, NH maker of equipment for growing and processing the sapphire crystals used in LEDs, has raised $5 million of a $10 million equity round, according to an SEC filing. The filing lists Hemant Taneja, managing director of Cambridge, MA-based General Catalyst Partners, as a director of the stealthy ARC Energy.
Erin Kutz wrote:
Paragon Lake, a jewelry virtualization and customization company, is looking to add a new layer of sparkle to its business. It’s renaming itself Gemvara and revamping its business model to to focus on allowing customers to personalize jewelry pieces directly from their own computers and not from computer stations inside retail stores as it had done originally.
The new Gemvara website (set to launch later today) looks to enhance the company’s “the-world-is-your-oyster” approach to jewelry design and customization. Customers will be able to browse designs from roughly 30 designers worldwide, and personalize their selections on the spot by swapping out a different gemstone or changing the metal.
“The focus for us is really about providing a consumer experience where shoppers have fun and get exactly what they want,” says Matt Lauzon, founder and president, who helps CEO Deborah Besemer run the company out of incubator space at Lexington, MA’s Highland Capital Partners.
Paragon Lake’s previous model hinged on the Virtual Display Case, an interface installed on computers in jewelry stores that allows customers to browse and customize inventory from different designers. They would then order their selection through the retailer, and Paragon Lake would take a cut. The company’s virtual display cases, launched with the first retail partner last March, were intended to lessen the physical inventory burden on jewelry stores and also allowed retailers to feature up-and-coming designers more prominently. The company had hoped to get its system into 50 retailers by the end of 2009, a target it hit by fall, Lauzon says. Now about 45 stores still have the computerized display cases, as some of the retailer partners are looking to adopt the online model that Gemvara will offer, he explained.
The new model pursued by Gemvara, a name that combines “gem” with the Sanskrit word for wish, furthers the customization concept, and adds a greater bit of convenience. Customers can do all their shopping and modifications directly on the Gemvara website. “It allows us to speak directly with the consumer,” Lauzon says.
Customers looking for advice as they’re about to personalize a certain piece of jewelry can contact Gemvara’s version of personal shoppers for feedback on their customization ideas. Initially this will be done on the phone, but future plans are to offer chat windows, and bring licensed gemologists into the mix to offer their perspectives. In the coming months, Gemvara plans to enlist more designers to showcase on the website, and even connect those designers with customers in the same way it seeks to connect them with the personal shoppers, Lauzon says.
Reflecting its enhanced focus on customer service, direct retail sales, and the Web, Gemvara has hired heads of merchandising, product management, and online marketing, bringing the office staff to just over 20. When Bob spoke with Lauzon and Besemer in May, they had already been planning to eventually shift the business model to Internet-based customizations for jewelry shoppers (what Besemer referred to as the Web 2.0 of online jewelry shopping), but they’ve actually done it sooner than their original target (which at that time was Mother’s Day of this year). The new site will also feature more affordable pieces than Paragon Lake’s store-based virtual display cases did. Jewelry in the previous model usually ran upwards of $1,000, but Gemvara will feature some designs as low as $250, Lauzon says.
Erin Kutz wrote:
Apparently, Massachusetts venture investors aren’t like most American consumers in January, when purse strings tighten and spending comes to a halt following the previous month’s holiday shopping excesses. By contrast, they significantly upped their investments in the state’s tech and life sciences startups, investing $355.2 million across 28 equity deals, according to information provided by private company intelligence platform CB Insights. That’s at least $130 million more than the $224 million in venture funding that 36 startups wrapped up in December.
January’s dollar figures make it the best month in venture investing that we’ve tracked so far (we started in June), thanks to huge deals in software, healthcare, and energy. In fact, January’s dollar totals toppled the previous best month to date, September, by more than 50 percent, when startups raised $228 million across 25 deals.
The largest January equity deal came in at a whopping $120 million for Southborough, Ma-based IkaSytems, providers of process automation and intelligence management software for the healthcare payer market. Essex Woodlands Health Ventures and Providence Equity Partners led the growth equity round. This put it $85 million ahead of the next biggest venture deal of the month, the $35 million Series B round that went to Alnara Pharmaceuticals, a Boston-based company that plans to seek FDA approval for its enzyme-replacement drug for patients with cystic fibrosis. The spread between the top two deals was much bigger than the $4 million difference between the first and second place deals in December, when venture financings were all grouped more closely in value. The Alnara financing was also way ahead of the January third-place deal, $23.8 million for Lowell-based energy company Konarka Technologies. The remaining January venture deals followed more closely at each other’s heels, as you can see in the list at the end of this story.
Software companies took home the biggest share of venture funds at $167.7 million, and knocked the healthcare sector off of its throne, largely thanks to the IkaSystems deal (healthcare had previously led all other sectors in venture dollars every month that we tracked). The five remaining software startup venture financings accounted for $47.7 million. Even without the IkaSystems financing, software companies still pulled in more than they did in December ($30.5 million across five deals), when the sector ranked fourth in dollars raised.
The previous sector champ, healthcare, came in second in terms of venture dollars amassed at $121.1 million, but still had …Next Page »
Erin Kutz wrote:
When Eric Fitch decided to start his own company a few years back after working on a string of other startups, he knew clean energy was the way to go. “I couldn’t escape the gravity of this renewable energy thing,” he says.
He thought the industrial and manufacturing arenas would be the best targets, as industries such as transportation were already teeming with renewable energy innovators. Luckily for Fitch, he had friends in the right places, one of those being Boston’s Harpoon Brewery. Fitch, a home brewer himself, knew firsthand how much waste beer production creates. Harpoon let him come in and analyze its operations, allowing him to build a model of its energy use and output—and to begin brewing up ideas about how the organic waste produced in the system could be converted to renewable energy.
“While it’s quirky and cute, it’s also a good business model,” says Fitch, who has his bachelor’s and master’s degrees in mechanical engineering from MIT and a decade’s worth of experience at startups in industries as diverse as biotech, sports equipment, and software under his belt. “The beer brewing industry is the best marketing industry in the world,” he explains. Fitch’s aim is for his company, Arlington, MA-based PurposeEnergy, to excel in the beer market, and then let its first customers become the startup’s loudest advocates as it expands into other industries.
Brewing and bottling beer creates organic byproducts at almost every step of the process, from spent grain and yeast to protein deposits. The resulting waste is mostly water with a high concentration of solids, which companies have to pay to transport offsite to treatment facilities that charge by the pound to make the water safe enough for disposal.
PurposeEnergy, incorporated in 2007, has come up with system that uses a process called anaerobic digestion to turn the byproducts from brewing into renewable fuels. Installed on-site at a brewery, the “PurposeEnergy Biogas Facility” would convert much of the organic waste into methane, the main component of the natural gas that most breweries use to fuel their plants. In doing so, it would cut costs for energy and byproduct remediation by about …Next Page »
Erin Kutz wrote:
We know, we’ve been holding out on you. But don’t worry, we do plan to reveal the winners of last night’s Battle of the Tech Bands 3, for those of you who couldn’t make it. The evening saw a great turnout of people representing all facets of the tech, life sciences, and venture communities here in Boston. Each band played a riveting set, and captured the attention of audiences and judges alike.
But for all our boasting that we’d settle the battle for coastal superiority once and for all, we did no such thing. The audience chose Boston’s gritty country rock band, The Dirty Truckers, who won in a very tight race (182 votes to 180) against electronica hipsters Deadbeat Darling. But the judges forced an East Coast-West Coast draw when they selected Lions Ambition of Seattle as Most Innovative Band. And few could dispute their choice after hearing the band’s seamless and energetic fusion of rock and hip hop sounds.
In addition to the audience’s affection, the Truckers took home seven hours of studio time, including engineering and production, from Bristol Studios. And the Lions headed west with a marketing package that includes one year of retail service from Nimbit and three hours of consulting from Ten Minute Media, known for designing websites for the likes of Mick Jagger and Lenny Kravitz.
As it did in its last Battle of the Tech Bands appearance, McAlister Drive went the extra mile (or yard, anyway) to work the crowd, with its lead vocalist jumping down off the stage and out onto the dance floor. And heavy metal band Juda’s Wake showed us that the Pacific Northwest can produce seriously intense sound (and some beautiful rocker locks).
In the end, it seemed the Boston and Seattle contenders were happy to set aside any coast-to-coast rivalry and share the spotlight. Following the competition, Deadbeat Darling returned to the stage to play a closing set for the audience. To our surprise (and delight), they invited the Lions to join them for spontaneous collaboration. If you didn’t think those two musical styles could go together, think again!
Thanks again for all who came. And a big shout-out to our event sponsors, Aerva, Bristol Studios, McNamee Lawrence & Co., Microsoft, and Nimbit; to Brad Feld, who chipped in to help us fly the Seattle bands out for the event, and to all our event partners and supporters. Thanks also to our incredible guest judges: Shawn Broderick, executive director of TechStars Boston, Bob Cramer, executive chairman of Nimbit, Laura Fitton, CEO of oneforty, Jennifer MacLean, CEO of 38 Studios, and Giles McNamee, Managing Director of McNamee Lawrence & Co.
Here’s a few snapshots from last night’s show, courtesy of Kevin Vogelsang. Click on the the images for a larger view. We hope to see you all at our next event!
The Dirty Truckers rock the house. |
Lions Ambition roars. |
Juda's Wake built a wall of sound. |
Erin Kutz wrote:
Art Technology Group (NASDAQ: ARTG), an e-commerce software and service company in Cambridge, MA, announced its plans to sell 25,000 shares of common stock at $3.50 a share in an underwritten public offering. Morgan Stanley and Deutsche Bank Securities will serve as underwriters for the deal, and will have the 30-day option to purchase as many as 3.75 million additional shares to cover over-allotments. ATG, which said the proceeds of the stock sale could go to future acquisitions, paid $17 million in cash in January to acquire InstantService, a Seattle-based provider of SaaS-based live chat services.
Erin Kutz wrote:
It’s been a busy week covering venture deals, IPOs, and all the iPad fallout fit to print, so we’re ready to release by defending our East Coast honor tonight at the Battle of the Tech Bands. This will be the third year we’ve hosted the showdown between bands from area tech companies, but will be the first time we’ve twisted it by inviting contenders from Seattle’s version of the event to compete. If you’re ready to show the Pacific what we’re made of (and laugh at them for shivering in these frigid temperatures we’re all too used to) join us at the Middle East tonight. Doors open at 7, and the music starts at 7:30 sharpish.
As a reminder, we’ll be listening to West Coast guests Lions Ambition (representing Boeing) and Juda’s Wake (Microsoft) battle some of the best bands from our past two Boston competitions. That includes McAlister Drive (formerly representing Linedata Services), The Dirty Truckers (representing American Well and formerly Sophos), and Deadbeat Darling (representing Pictela and formerly Akamai). In answering the age-old question of which coast is superior, these bands will fight for prizes that should help boost their fame, including studio time and marketing services. Our Seattle editor has asserted with some understated Pacific pride that his city is poised to take it. That’s fine. We’re OK letting others think they’ll win, all the while knowing that our team is the best (duh, we’re Red Sox fans!).
Bring your business cards, cause we’re giving away some great door prizes such as Rock Band bundles, Roombas, Middle East tickets, a fancy dinner gift certificate, and hotel night stay for two (for you classy people out there). You’ll also get to be in the same room with our fabulous guest judges, who represent colorful facets of the local technology entrepreneurship arena (and the entertainment world), such as a Twitter app store, a big name startup incubator program, an investment banking services company, and a music promoter.
If all this appeals to you, hurry! You’ve got another few hours to buy your tickets online for $25, and then they’ll go for $35 tonight at the door. See you there.
Erin Kutz wrote:
Syndax Pharmaceuticals, a Waltham, MA-based developer of cancer therapies, has pulled in $9 million of a planned $16 million in a mixed offering of equity, options, and warrants, according to an SEC filing. Syndax’s past investors include Domain Associates and MPM Capital, which led a $40 million Series A round in 2007. The company launched in 2005 with intellectual property based on the work of Ronald Evans, a professor at San Diego’s Salk Institute for Biological Studies.
Erin Kutz wrote:
1366 Technologies, a Lexington, MA-based company developing more efficient photovoltaic panels, has raised a $5.2 million Series B round from North Bridge Venture Partners and Polaris Venture Partners, says company president Frank van Mierlo. An SEC filing puts the total offering amount for the round at $6.2 million, but van Mierlo says the round closed at $5.2 million, with $5 million coming from the venture firms and the remainder coming from investments by 1366 management. He says investors were spurred by funding 1366 received from the U.S. Department of Energy Advanced Projects Research Agency – Energy (ARPA-E) program, which looks to fund innovations in energy efficiency.
Erin Kutz wrote:
RainDance Technologies, a Lexington, MA-based microfluidics company, has appointed Sirshendu Roopom Banerjee as its new president and CEO, the company announced today. Banerjee most recently served as director of healthcare investment banking at Leerink Swann and succeeds RainDance CEO Christopher McNary, who has taken the position of chief commercial officer at the company.
