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Volume 6, Number 44 - November 1, 2001 - This Week's Contents:

--1. Where's The Growth?
--2. It's A Process Thing
--1. OptiView's Web Image Optimization
--2. Document Tech's RemoteMAIL Solution
--3. Black's News Service
--4. Round-up: Fun With Domain Names
.....NeuStar And .us
.....NeuLevel And .biz
.....Educause and .edu
5. Round-up: Some Deals
.....for mindSHIFT, L-Soft, Bantu/Blackboard and Ztango
6. Quick Hits from Xert, HandySoft, iSavvix, Sandbox, and Astrolink
--1. Dough Raise Me
.....$30.2M for 4 netpreneurs
--2. Life In The Food Chain
.....Group 1 Acquires Vision-R
.....Lockheed Martin Acquires OAO
.....District Photo Acquires Snapfish
3. Dueling Bankrolls: Q3 VC Numbers Are In
--1. New Mentoring Group In Baltimore
--2. Pentagon Seeks Ideas For Combating Terrorism
--3. Directory Of Regional eLearning

I> News About The Program
At this month's Coffee & DoughNets we take up the topic of partnering
with corporate powerhouses, featuring speaker Don Laurie, an investor
and director of a number of early-stage ventures. He will explain why
corporate venture capital is here to stay, how to leverage strategic
corporate relationships, and reasons why entrepreneurs should work
with large global corporations. Laurie is the author of "The Real
World of Leaders" and the recently-released "Venture Catalyst: The
Five Strategies for Explosive Corporate Growth." In an interview with
Laurie for the new book, former Chairman and CEO of Hewlett-Packard,
Lew Platt, demanded, "To hell with leadership. Where's the growth?" We
'll follow at least one path to growth at C&D for "Partner With Power"
on Wednesday, November 14, 7:00 AM, at 11600 Sunrise Valley in Reston,
VA. Sign up now.

Sign up for C&D:
What do telecom execs know about Madonna ring tones? That could be one
of your biggest market challenges and a good reason to check out the
transcript of last week's Coffee & DoughNets, now available at the
Netpreneur site. It features discussions of product strategy and
product management by Phil Carrai and Paul Mauritz, with tips on how
to keep your better mousetrap out of the heap of products that never
quite made it.  And for those who like to watch, look for the video
next week.


II> The Region's Netpreneurs
(Dulles, VA) OptiView Technologies introduced PreFlight, a content
preparation service that automatically resizes and streamlines Web
images as a part of the Web site production process. According to the
company, PreFlight optimizes images before they appear online,
speeding page download times up to 50%. For example, many sites
receive new graphics daily from various content feeds which need to be
converted to multiple image sizes. PreFlight compresses them prior to
posting using customer-specified criteria for a variety of dimensions,
colors, depths, and image types.
(Washington, DC) Document Technologies, a systems integrator of
digital imaging and document solutions, launched RemoteMAIL, an
automated paper-to-digital conversion system for processing postal
mail. Remote personnel can use it to handle and scan incoming paper
mail and automatically deliver digital versions via email as PDF
images to network mailboxes or individual recipients. All of the
components of RemoteMAIL are commercial, off-the-shelf hardware and
software products.
(Washington, DC) unveiled an analysis service that
will provide coverage of the black political economy in the US, as
well as coverage and analysis of financial markets and political
economies in Africa, the Americas, the Middle East and the Islamic
world. The analysis service will focus on the nearly 10
African-American publicly-traded firms, African-American voting
patterns, and the activities of the Congressional Black Caucus;
international trade, fiscal and monetary policies; and political
developments in various areas of the world. The product is targeted
especially at financial analysts, political consultants, money
managers, economists, and newspaper editors.

-- NeuStar And .us
(Washington, DC) NeuStar has been selected by the Department of
Commerce to manage the country-specific top-level domain for the
United States, ".us." The policy change allows individuals, government
entities, public service organizations and businesses to use .us in
their Internet addresses. NeuStar also operates the registry of all
North American telephone numbers and administers the database which
North American carriers use to route telephone calls.

-- NeuLevel And .biz
(Sterling, VA) NeuLevel, a subsidiary of NeuStar and the registry
operator for the new ".biz" top-level domain, announced that it is
testing and is prepared to register .biz addresses on a real time
basis beginning November 7.

-- Educause and .edu
(Washington, DC) Control of the ".edu" top-level domain, which is used
for educational institutions, was passed from the US Government to
Educause, a not-for-profit group representing more than 1,800
universities, colleges and higher education groups. The plan was
announced in April and became official with the signing a five-year
cooperative agreement. The .edu domain has been reserved for US-based,
four-year universities, a policy Educause will review and likely

(Fairfax, VA) mindSHIFT Technologies, a Managed Services Provider
(MSP), has a deal with Rockville-based ISG Solutions, a reseller of
member relationship management software, to provide associations with
a solution for outsourcing their technology infrastructure. ;

(Bethesda, MD) L-Soft has an agreement to integrate F-Secure's
Anti-Virus technology into its Listserv email list management product.
F-Secure will check each email attachment sent via mailing lists, and,
if a virus is detected, Listserv will reject propagation of the
message. ;

(Washington, DC) Bantu and Blackboard, both based in DC, have
developed product extensions that allow the Bantu IM & Presence
Platform to interoperate with the Blackboard 5.5 eLearning management
system. ;

(Herndon, VA) Ztango signed an agreement to begin offering its ring
tones, screen savers and graphics to consumers using Motorola's
wireless phones. Telecom Italia Group, one of the largest network
operators in Europe, is the first to launch the new service.

(Alexandria, VA) Xert Communications released Version 2,0 of its Xert
SF 2.0, an application that helps companies create and manage
email-based marketing campaigns in pre-sales and post-sales

(Vienna, VA) HandySoft, a provider of business process software,
released Version 7 of its BizFlow product, a set of Web-enabled,
collaborative tools and process platform. Enhancements include a
personalized viewing capability for any departmental or enterprise

(Herndon, VA) iSavvix released Version 3.0 of its Java community site.
New features include Alerts, DevSpace, BackOnline, Global Events, and
Tech 101.

(Reston, VA) FL-based Sports media company has
terminated its previously announced agreement to acquire,
a producer of online fantasy sports products. SportsLine said it
terminated the agreement "due to Sandbox's breach of certain
representations and covenants in the acquisition agreement." ;

(Bethesda, MD) TRW said it will shut down its operations related to
its satellite joint venture, Astrolink, after another partner,
Lockheed Martin, decided not to provide additional funding. Other
partners in the Astrolink venture are Liberty Media and Telepazio.

III> Funding & Finance News

$1 million for Richmond-based Financeware, a provider of probability
analysis technology and marketing strategies for financial advisors
and institutions. The money comes from Thomson Financial Ventures in a
follow-on to Financeware's second round of institutional financing
announced in August. The new money brings the total value of the round
to $9 million. The investment also includes a development and
marketing agreement between the companies that integrates
Financeware's Monte Carlo simulation technology into a new
institutional technology platform from Thomson.

$4 million in a Series B round for Herndon-based Semantix, a knowledge
management solutions company. Three Quebec-based institutions
participated, including new investor the Solidarity Fund QFL, which
led the round, and current investors CDP Sofinov and Innovatech du
Grand Montrťal. The money brings the total invested in Semantix to
over $10 million. Through Cross-Lingual Information Retrieval,
Semantix products allow users to find information across multiple
languages and data repositories.

$10.2 million in a Series B round for Arlington-based InfoCruiser, a
provider of software solutions for scaling the performance of back-end
systems. Carlyle Venture Partners led the round with participation
from  previous investors FBR Venture Capital Management, DynaFund
Venture Partners, Draper Richards, Argus Capital, Avatar Capital,
Venturehouse Group, Charles Ross Capital Partners and individual
investors. InfoCruiser's flagship product, dbCruiser, is a dynamic
caching server built on main-memory technology that improves the
performance of database-dependent applications.

$15 million in a Series C round for Bethesda-based ELink
Communications, a provider of in-building broadband Internet access
services. The money comes from existing investors. ELink also
announced that it has completed its acquisition of New York-based
competitor On Site Access.

-- Group 1 Acquires Vision-R
(Lanham, MD) Group 1 Software, a leading provider of CRM software
solutions, signed a letter of agreement to acquire the assets of
Toronto-based Vision-R eTechnologies, a provider of electronic archive
and retrieval software solutions. The deal will add real-time digital
storage and high-speed retrieval of business documents to Group 1's
DOC1 customer communications management suite, a solution that permits
enterprise-wide creation and management of personalized customer
communications and messaging campaigns.

-- Lockheed Martin Acquires OAO
(Greenbelt, MD) OAO Corporation signed a definitive agreement to be
acquired by Bethesda, MD-based Lockheed Martin Technology Services.
OAO provides IT solutions to the federal government and had year 2000
revenues in excess of $200 million. Lockheed will combine OAO with its
Information Support Services company to create a new organization.

-- District Photo Acquires Snapfish
(Beltsville, MD) District Photo has acquired San Francisco-based
online photo service Snapfish, a company backed by Kodak, Compaq,
BellSouth, the Mayfield Fund, and other private investors. District
Photo operates a mail-order film business under several brand names,
and has been Snapfish's processor since inception. Snapfish will
continue to operate as an independent business unit. ;
Venture capital investment and fundraising continued to slow in Q3 of
this year, according to the latest report from Venture Economics and
the National Venture Capital Association (NVCA). Nationally during the
quarter, VCs invested $7.7 billion in 873 companies . . . but hold on
'thar Babbalouie, . . . according to the PricewaterhouseCoopers
MoneyTree Survey and VentureOne, it was of $6.5 billion invested in
601 financing rounds.

Oh, well, close enough for gummint work we guess, and countin' this
stuff is a tough job. (But just wait 'til you see what we're cooking
up in the next few months).

For more VE/NVCA numbers:
For more MoneyTree numbers:

BTW, PwC says it all amounts to a 23% decline in dollars and a 16%
decline in rounds compared to last quarter; VE/NVCA say its a 31%
decline from Q2 and a 73% decline from a year ago. For an explanation
of why different groups come up with different numbers, see this
article by Shawn Neidorf of the San Jose Mercury News form last year:

For simplicity and space's sake, we'll stick with Venture Economics
and the Mid-Atlantic Venture Association's (MAVA) numbers for the
region. They say that VCs invested a total of $394 million in 59
Mid-Atlantic-based companies in Q3/2001, down 49% from the $800
million invested in Q2. For more regional numbers from VE/MAVA visit:

IV> Resources & Opportunities
(Catonsville, MD) Baltimore Venture Mentors is a new group offering to
help coach companies in implementing their ideas, with an emphasis on
polishing funding presentations and assisting with strategic
positioning. All work is done on a pro bono basis at meetings held on
the third Wednesday of every month. At each meeting, two companies
will present for half an hour followed by a 30-minute critique and
discussion with the BVM team. Within one week of the meeting, the
companies will receive a written summation of the team's feedback and
counsel. For ongoing guidance, each company will have the opportunity
to maintain contact with the team members confidentially. To
participate in the monthly meeting, companies must submit a one page
executive summary of their business plan and receive a preliminary
review by a mentor partner. BVM is part of a broader network of
mentoring programs that includes Northern Virginia Venture Mentors and
Virginia Beach-based Tidewater Venture Mentors. ;
(Washington, DC) The Department of Defense is asking for help in
fighting terrorism with a jointly sponsored Broad Agency Announcement
(BAA) from the Under Secretary of Defense for Acquisition, Technology
and Logistics and the Combating Terrorism Technology Support Office.
The announcement specifically seeks help in combating terrorism,
defeating difficult targets, conducting protracted operations in
remote areas, and developing countermeasures to weapons of mass
destruction. Its objective is to find concepts that can be developed
and fielded within 12 to 18 months. Find out more at:
(Washington, DC) The Greater Washington Initiative has published an
eLearning Company Directory that features a list of companies and
organizations in the region's eLearning cluster. The approximately 50
companies in the directory have expertise that ranges from
pre-kindergarten education to corporate training to flight simulation.


Thanks for your interest in and support of the Morino Institute's
Netpreneur News is copyright 2001, 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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