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Netpreneur News
Volume 7, Number 30, August 1, 2002

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This Week's Contents:

      1.1 May The (Sales) Force Be With You
      2.1 Arc Second's Indoor GPS
      2.2 Sourcefire's Intrusion Detection System
      2.3 Round-up: Quick Hits
      ...... news from PNNOnline and SER Solutions

      3.1 Dough Raise Me
      ...... $11.2M for 2 local entrepreneurs

      3.2 Life In The Food Chain
      ...... SwannStreet Ventures Acquires FORMTEK
      ...... Response Networks Merges With OpenService

      3.3 Latest MoneyTree And WebMergers Numbers
      4.1 Guide To Regional Incubators
      4.2 Israeli Executives Club Launches
      4.3 With Friends Like These, Who Needs Advertisers?

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

What does Eric Becker of Sterling Venture Partners advise if you
find yourself negotiating with Darth Vader for your first big sale?
The short version is: Listen to your dad. The long version is in the
transcript and video from last week's Coffee & DoughNets, "A
Question Of Scale: Growing Into Your Customer Base." No light
sabers, but plenty of enlightenment from our panel of Jedis,
including Becker; Patrick Arnone, President of Arnone & Associates;
Deepak Hathiramani, President and CEO of Vistronix; Cory Marsan, EVP
of Sales & Marketing at ServiceBench; Rob Masri, VP of Corporate
Development at Multicity, and our own Yoda, Mario Morino.

Transcript and Video:

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

(Dulles, VA) Arc Second launched its Constellation 3Di Indoor GPS
system, developed using the company's proprietary 3D-Intelligence
technology. It uses small receivers that can calculate position
coordinates independently using signals from infrared light
transmitters. Uses include the measurement and inspection of large
tooling, sub-assemblies and infrastructure in the aerospace,
automotive, rail, and shipbuilding industries. Arc Second also
announced strategic partnerships with several metrology companies,
including Accurex Dimensional Measurement, ATT Metrology Services,
Automated Precision Systems, Brunson Instrument, and New River

(Columbia, MD) Sourcefire introduced its Intrusion Detection System,
a solution that monitors gigabit networks and alerts when suspicious
activity is detected. Using Sourcefire's Network Sensor and
Management Console technologies, the system can detect attacks
without flooding administrators with false positives and provides
tools to aggregate and correlate the alert information. Among other
features, it uses several preprocessors to perform protocol analysis
and normalization, detecting anomalies such as portscans, IP stack
fingerprinting, Denial of Service (DoS) attacks, and ARP spoofing.
(Yup, ARP Spoofing.)


(Richmond, VA) PNNOnline, a daily news and information resources for
the nonprofit world, launched a new look and added new features,
including enhanced news from the UK and overseas. The site now
features news briefs organized to reflect the vertical segments of
the nonprofit sector, a Career Center, and a Directory of Services.

(Dulles, VA) SER Solutions release Version 2.0 of SERiMail, its
email response and management solution that uses neural networking
to interpret the meaning of incoming emails. Enhancements include
response personalization and routing to subject matter experts.

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


$250,000 for Rockville-based 20/20 GeneSystems from three state
agencies that promote the biotechnology industry in Maryland -- The
Maryland Department of Business and Economic  Development (DBED),
MdBio, and The Maryland Technology Development Corporation (TEDCO).
DBED issued a $50,000 "Challenge Investment" to 20/20 after the
company successfully beta tested its image analysis software. A
$150,000 Project Accelerator Award came from MdBio, a nonprofit
corporation that advances the commercial development of Maryland
bioscience. The remaining  $50,000 comes from TEDCO to support a
collaboration between 20/20 and the Surgery Branch of the National
Cancer Institute.

$11 million for Columbia-based PANACYA, a developer of Intelligent
Application Performance Management software. The round was led by
Lazard Technology Partners, with participation by current investor
The European Technology Fund Group. PANACYA's software architecture
and platform combine distributed intelligence and visualization
technologies with peer-to-peer communications to manage the
performance of eBusiness applications.


(Washington, DC) SwannStreet Ventures has acquired Lockheed Martin's
FORMTEK subsidiary in a deal financed through private equity and led
by Resource Ventures L.P. FORMTEK, a provider of Enterprise Content
Management software, has over 50 corporate clients with more than
40,000 users in the aerospace/defense, automotive, manufacturing,
telecom, and utility industries. Gary Mann becomes CEO of FORMTEK.
He was most recently President of Lockheed's commercial outsourcing
business, which included FORMTEK.  Dennis Scanlon, currently
FORMTEK's GM, will become COO. SwannStreet Ventures is the
investment arm of DFI International's Corporate Practice.

-- Response Networks Merge With OpenService
(Alexandria, VA) Response Networks is merging with Westborough,
MA-based OpenService to form a new company called Open that will
offer real-time, cross-platform threat and incident correlation for
both network and security operations centers. The merger adds
Response's application performance analysis and historic reporting
capabilities to Open's threat and incident correlation solutions,
providing users with a single vendor for both security and network
operations. The combined company has customers that include Lockheed
Martin, AOL, and Reliaquote.

(Washington, DC) Do you want the bad news first or the good news?
Nationally, VC investments were down again last quarter according to
PricewaterhouseCoopers' latest MoneyTree report, falling 11% to $5.7
billion nationally. Here in Greater Washington, however, they were
up 4.7% from last quarter. Regionally in Q2, 46 local companies
raised $278.2 million, compared with 50 companies that raised $265.5
million in Q1. For more highlights, visit

Meanwhile, according to Webmergers, Internet mergers and
acquisitions spending hit a six-month high nationally in Q2. Buyers
spent just over $2.7 billion to acquire 120 Internet properties in
April as deal-making revived in online eFinance and consulting. It
marks the highest monthly level since November of 2001. Spending was
almost exactly on par with April of 2001 when acquirers spent $2.9
billion to buy 121 Internet companies. For more highlights, visit

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

(Washington, DC) The Greater Washington Initiative (GWI) released an
updated directory of Greater Washington business incubators and
accelerators, a mix of 25 new and existing organizations. The online
publication highlights facilities around the region dedicated to
supporting and encouraging business growth among entrepreneurial,
young, international, and new technology companies. It offers
contact information for incubators run by area universities,
economic development offices, and private businesses, and includes
seven new organizations: Affinity Lab (DC); Anne Arundel Technology
Incubator (Annapolis, MD); BioAccelerator of Fairfax County
(Springfield, VA); Georgia Avenue Business Resource Center (DC);
Howard University Small Business Development Center (DC); Milestone
Equity Partners (Falls Church, VA); and VentureFurther (DC).

(Fairfax, VA) The US-Israel Business Exchange (US-IBEX), an
association of US and Israeli technology and life science companies,
launched the Israeli Executives Club, a forum designed to bring
together executives from Israeli companies located in the region, as
well as Israeli executives working in US companies. It aims to
introduce the group to local business leaders and to run programs
that explain to Israeli entrepreneurs how to successfully navigate
the US business culture. The group will meet bi-monthly around the
Washington area. Over 50 executives attended the group's recent
kick-off event.

(New York, NY) DoubleClick released the results of its Cross Media
Reach Study, which compares the relative audience reach of Internet
sites, network TV programs, and consumer magazines. According to the
study, the Internet's most popular sites consistently deliver larger
audiences than the most watched television programs and are
comparable in size to popular consumer magazines. According to the
study, on average, the top three sites (Yahoo! Search at 22.8
million, MSN Hotmail at 22.7 million, and MSN Search at 22.6
million) attracted audience sizes 43% larger than the top three
prime time television programs (Friends at 14.7 million, ER at 13.3
million, and Will & Grace at 10.9 million). These same sites
attracted audience sizes that were on average only 5% less than the
top three consumer magazines. The study also found that the
Internet, in comparison to TV and consumer magazines, is highly
effective in reaching two coveted demographics, teens and adult
males. For an executive summary of the survey, visit:

Thanks for your interest in and support of the Morino Institute's
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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