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Netpreneur News
Volume 7, Number 10 - March 7, 2002

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This Week's Contents:

      1.1 The Word On The Street About Investments
      1.2 C&D Transcript & Video
      2.1 OptiView's Web Content Optimizer
      2.2 NextLinx's Web Services for Global Trade
      2.3 Xtria Has Healthcare HIPAA Help
      2.4 POS.Com's Point-Of-Sale Products
      2.5 Mercari's Newest Merchandising Software
      2.6 Round-up: Quick Hits from LighTrade, CMSWatch, SER,
      ..........SolarMetric, HandySoft, and Mindsurf

      3.1 Dough Raise Me
      ......$11.85M for 3 local netpreneurs

      3.2 Life In The Food Chain
      ......Mobilepro Acquires Neoreach
      ......Picis And MSM Merge Acquires Dayrates

      3.3 A New Beltway Bandit Bubble? Two IPOs Coming
      4.1 Broadband Surfing Outpaces Narrowband
      ...... news about people at Eurotech,
      ..........Mantas, Cambrian, NeuStar, and iLearning

|||||||||||||||||||| 1. News About The Program ||||||||||||||||||

VCs say they are ready to do more new deals in the coming year,
according to the two latest quarterly surveys conducted by The
Mid-Atlantic Venture Association (MAVA) and Netpreneur.
Entrepreneurs are more skeptical, however, saying that they remain
concerned about the lack of early stage capital in the region. The
surveys -- one of entrepreneurs, the other of investors -- suggest
that there is still caution on the part of investors but that they
believe the downward cycle has halted and that the region is poised
for an upturn. "In 2002," said Kevin Burns, a MAVA Board member and
Managing Principal at Lazard Technology Partners, "we should see
increased deal flow over 2001; however, the rebound will be slow and
will happen in small steps, sector by sector." Forty-four percent of
VCs said that as of February 1, 2002, they believe the region is
beginning to see an upswing. That's up sharply from the 14% who felt
that way in December 2001. Entrepreneurs also believe the situation
is improving but are not quite as optimistic since they are still
seeing only a trickle of early-stage money compared to the glory
days. Just under a third believe the region is beginning to see an
upswing and the majority of entrepreneurs (46%) said the region is
flat but scraping the bottom. Get more highlights from the survey at

As Blackboard co-founder Matthew Pittinsky described it at last week
's Coffee & DoughNets, creating a corporate culture is a lot like
creating a brand. "Build a company with an identity," he advised,
"because it pervades everything else in terms of recruiting people,
retaining people, motivating people, and building a culture." Get
tips and advice on building a culture of success for your company in
the transcript and video of last week's event, featuring Pittinsky,
Andrew Hill of DevElements, Caren DeWitt of webMethods, Jeremy
Brosowsky of Washington Business Forward, and Netpreneur's own Mario Morino.

|||||||||||||||||||| 2. Regional Netpreneurs ||||||||||||||||||

(Dulles, VA) OptiView Technologies released TurboCache, a Web
content and image optimization product for reducing image bulk,
caching, and accelerating Web traffic for an entire user population.
The company says that it speeds page downloads an average of 25% and as much as 50% across any connection, including corporate LANs,
modems, and wireless devices. TurboCache is a transparent caching
proxy server that reduces the byte size of content prior to caching,
increasing server and network capacity and speeding page downloads
for an xSP's entire audience. OptiView's proprietary technology
balances bandwidth savings with image quality, even to the extent of
changing a file's format and conducting intelligent color palette
reduction. It is delivered as a rack-ready unit that can be
installed at a data center, POP, or office location.

(Rockville, MD) NextLinx, a provider of global trade content and
management solutions, launched Web Services for Global Trade, a
software solution that plugs into and operates in the background of
existing ERP systems. It embeds trade party screening, import and
export license determination, document determination, document
generation, and landed costs calculation functionality directly into
clients' existing supply chain, eCommerce, and logistics software
applications. It is based on NextLinx's Global Knowledge, a
centrally managed database of international trade content for more
than 100 countries.

(Frederick, MD) Xtria Healthcare Systems launched X-HIPAA, an
automated, Web-based Health Insurance Portability and Accountability
(HIPAA) compliance assessment and training tool. It enables
healthcare systems to use their existing policies, procedures, and
human resources to perform gap analysis, generate reports, and
create role-based training and testing segments. X-HIPAA is composed
of two Web-based tools, X-Assessment and X-Training. X-Assessment
allows each organizational unit within a healthcare system to
complete a HIPAA readiness self-assessment. X-Training is a
Web-based educational tool.

(Gaithersburg, MD) POS.Com Technologies introduced two new solutions for restaurateurs and retailers. NetworkSecure is an ASP-offered network infrastructure technology that enables restaurants and retailers to implement real-time, point-of-sale software. DataView
is a Web-based loss-prevention reporting tool that enables
management to evaluate and compare employee cash terminal access,
voids, cancelled orders, adjustments, keystrokes, and cash

(Washington, DC) Mercari Technologies released ClusterIT, the latest
addition to its merchandising software suite, Mercari Central.
ClusterIT helps retailers segment stores into like groups in order
to set more consumer-centered merchandising plans. According to the
company, ClusterIT saves retailers time and money by replacing the
process of grouping stores with software that more efficiently
manages data for analyzing consumer behavior and trends in buying


(Washington, DC) LighTrade, a provider of solutions for pooling and
trading bandwidth, has filed for Chapter 7 liquidation.

(Silver Spring, MD) CMSWatch, a website for news and analysis about
Web content management systems, released the second edition of its
"CMS Report." Available for sale at the CMS site, the report
provides an overview of Web content management products and best

(Dulles, VA) SER Solutions released version 3.1 of SERsynergy, its
integrated document management system. Enhancements include a new browser access client.

(Washington, DC) SolarMetric introduced Version 2.2 of its Kodo JDO
Enterprise Edition, a development tool for accessing relational
databases. New features include increased integration with major
J2EE application servers.

(Vienna, VA) HandySoft will integrate its BizFlow business process
software product with ORION, a content management and collaboration
solution from CA-based FORMTEK. HandySoft also announced enhanced support in BizFlow for Web services applications and standards.

(Baltimore, MD) eLearning company Mindsurf has a new deal to jointly
develop digital curricula based on McGraw-Hill Education's
electronic textbooks. The companies will first offer
Glencoe/McGraw-Hill's best-selling Algebra textbook in the fall.

|||||||||||||||||||| 3. Funding & Finance News ||||||||||||||||||


$1.85 million in a second round for DC-based Intellibridge, a
provider of knowledge management and advisory services. The money
comes from current investors Hudson Venture Partners, Liberty View
Equity Partners, Marketing 1 to 1 Ventures, and Lorentzen Group.
Intellibridge services combine Internet search and communications
technologies with human analysts and experts to provide customized
Internet-based intelligence services.

$2 million in a first round for Columbia-based network security
company, Sourcefire. The money comes from Inflection Point Ventures
and the Maryland Department of Business and Economic Development.
Sourcefire recently released OpenSnort Management Console, a sensor
management and intrusion detection analysis console that centralizes
the security environment of network devices, distributed enterprise
sensor deployments, and large service provider environments.

$8 million in a fourth round for Reston-based ClearCross, a provider
of content and applications for cross-border trade compliance and
security. The money comes from unnamed existing investors.


-- Mobilepro Acquires Neoreach
(Rockville, MD) Neoreach, a designer and developer of modem
solutions for 3G wireless communications systems, has been acquired
by Chicago-based Mobilepro, a developer of mobile information
solutions for B2B communications. Mobilepro will merge a newly
formed, wholly-owned subsidiary into Neoreach, which will continue
to operate as a wholly-owned subsidiary of Mobilepro.

-- Picis And MSM Merge
(Arlington, VA) Two providers of operating room automation
solutions, Picis and Wakefield, MA-based Medical Systems Management (MSM), will merge to form PicisMSM. The merger combines complementary operating room clinical and business automation products to create what the new company says is the only health care solution provider delivering every application needed to automate surgery and anesthesia departments, from pre-op scheduling and assessment to post-op discharge and reporting.

-- Acquires Dayrates
(Baltimore, MD), a provider of online direct
marketing solutions, acquired Dayrates, Scandinavia's largest
Internet direct marketing company. Dayrates will merge with's London-based subsidiary. The deal brings
new offices in Norway, Sweden, Denmark, and Germany.

Both VCs and entrepreneurs in this week's MAVA/Netpreneur survey
(see story 1.1) felt that the IPO market is unlikely to rebound this
year, but government IT contractors seem to be running a little IPO
rally. Following Fairfax-based ManTech (filed late November of last
year) and Anteon International (filed January of 2002), this week
they are joined by Veridian and SRA International. Arlington-based
Veridian, which specializes in national security programs for the
intelligence community, DoD, law enforcement, and other US
government agencies, hopes to raise $175 million. Fairfax-based SRA
is shooting for $86 million. The company provides a variety of IT
services to federal organizations, principally in national security,
health care and public health, and civil government. Both companies
are proposing to trade on the NYSE, Veridian under the symbol VNX,
SRA under the symbol SRX.

|||||||||||||||||||| 4. Opportunities & Resources |||||||||||||||

(New York, NY) Internet audience measurement service
Nielsen//NetRatings reported that broadband usage outpaced
narrowband usage for the first time in January, as broadband surfers
logged 1.19 billion hours, or 51% of the 2.3 billion hours spent
online during the month. By comparison, broadband users spent 727
million hours online in January 2001, accounting for 38% of the
total time spent online. The unique audience accessing the Internet
via high speed connection also continues to post gains
year-over-year, both at home and at work. Nearly 21.9 million
surfers at home accessed the Internet via broadband connection in
January, up 67% and accounting for 21% of the total online
population at-home. During the same time period, the at-work
broadband population jumped 42% to 25.5 million office workers,
compared to 18 million the year before.

|||||||||||||||||||| 5. Who'sware  ||||||||||||||||||

(Fairfax, VA) Eurotech, a developer of chemical and electronic
technologies for the environmental and security sectors, named Todd
Broms as President and CEO. He was most recently a consultant to the company. Eurotech also announced the appointment of Don Hahnfeldt as Chairman of the Board. Former Chairman, Chad Verdi, moves to the position of Vice Chairman.

(Fairfax, VA) Mantas, a provider of business intelligence solutions
to the financial services industry, named Simon Moss as CEO. He was
formerly a Partner in the Financial Services Practice of
PricewaterhouseCoopers in New York.

(Fairfax, VA) Cambrian Communications, a wholesale broadband service
provider, promoted William Opet to President and COO. He joined
Cambrian as President of Network Services in October 2001.

(Washington, DC) NeuStar, a provider of services to telecom and
Internet service providers around the world, named Michael Lach as
COO. He was previously President of Network and Systems at Winstar

(Baltimore, MD) iLearning, a provider of Web-based training and
communication solutions, named Mark Herron as Chairman of the Board. He most recently served as President and CEO of Productivity Point International.

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Netpreneur News is copyright 2002, Morino Institute, all rights reserved. The information contained here has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. It is provided "as is" and your use is at your own risk.

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