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Posts Tagged ‘Venture Capital’

Article from GigaOm.

Vyatta, a company providing open source networking software, has raised $12 million in expansion round financing as the entire networking field finds itself on the cusp of fundamental changes. The round, its fifth, was led by HighBAR Partners and brings Vyatta’s total fundingto $45 million. Also participating in this round are existing investors JPMorgan, Arrowpath Venture Partners and Citrix Systems.

Vyatta launched its first product in 2006, but has shifted from a focus on its open source routing software to delivering software that handles a wide range of networking functions. The company now has more than 1,000 customers and hopes this round of funding will help it expand as networking enters a new phase.

The networking world has changed drastically, thanks to a sharp increase in virtualized servers. Suddenly the static networking infrastructure no longer works as well when it is easy for developers to spin up a virtual machine on the fly. All those dynamic VMs however still have to connect to the network, as well as a lot of gear, such as firewalls. Plus, policies, such as those associated with HIPAA compliance or security issues all require knowledge of the network.

Kelly Herrell, Vyatta’s CEO, said that in the last six months or so, Vyatta has gone from seeing about 20 percent of its customers interested in its virtualization product to about 50 to 60 percent today. Herrell called it, “a head-snapping change.”

Vyatta’s software is an OS that allows a customer to program out its network topology on demand to adapt to the constantly changing underlying infrastructure. Other companies, such as Embrane, are trying to offer these tools, and still more are offering some type of holistic and abstracted network view. Vyatta believes its advantage is that its long history in building networking software helps it rise above the newcomers to the field as well as its many customers that are using its software in their data centers in production environments.”

Read original article here.

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Steven R. Gerbsman, Principal of Gerbsman Partners, Kenneth Hardesty and Dennis Sholl, members of Gerbsman Partners Board of Intellectual Capital, announced today their success in maximizing stakeholder value for a venture capital and venture lending backed technology company that provides tools and technologies for 3D interactive entertainment.

Gerbsman Partners provided Crisis Management and Investment Banking leadership, facilitated the sale of the company’s assets and its associated Intellectual Property. Due to market conditions, the board of directors and senior lender made the strategic decision to maximize the value of the company’s assets and Intellectual Property. Gerbsman Partners provided leadership to the company with:

  1. Crisis Management and technology domain expertise in developing the strategic action plans for maximizing value of the company’s, Intellectual Property and assets;
  2. Proven domain expertise in maximizing the value of the company and Intellectual Property through a Gerbsman Partners targeted and proprietary “Date Certain M&A Process”;
  3. The ability to “Manage the Process” among potential Acquirers, Lawyers, Creditors, Management and Advisors;
  4. The proven ability to “Drive” toward successful closure for all parties at interest.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 66 technology, life science and medical device companies and their Intellectual Property and has restructured/terminated over $795 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in San Francisco, Boston, New York, Washington, DC, Alexandria, VA, Europe and Israel.

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Steven R. Gerbsman, Principal of Gerbsman Partners, Kenneth Hardesty, Merle McCreery and Dennis Sholl, members of Gerbsman Partners Board of Intellectual Capital, announced today their success in maximizing stakeholder value for a venture capital backed online marketing solutions company, specializing in lead generation and customer acquisition.

Gerbsman Partners provided Crisis Management leadership, facilitated the sale of the business unit, associated Intellectual Property and assets and recovered receivables. Due to market conditions, the senior lender and the board of directors made the strategic decision to maximize the value of the business unit and Intellectual Property.

Gerbsman Partners provided leadership to the company with

  • Crisis Management and technology expertise in developing the strategic action plans for maximizing value of the business unit, Intellectual Property and assets;
  • Proven domain expertise in maximizing the value of the business unit and Intellectual Property through a targeted and proprietary “Date Certain M&A Process”;
  • The ability to “Manage the Process” among potential Acquirers, Lawyers, Creditors Management and Advisors;
  • The proven ability to “Drive” toward successful closure for all parties at interest.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 56 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $770 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.2 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington, DC, Alexandria, VA, San Francisco, Europe and Israel.

For additional information please visit www.gerbsmanpartners.com

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Here is an excellent article from WSJ venture Blog.

“Should venture capitalists brace for a rebound in the IPO markets?

In a six-week period between May 20 and July 1, four venture capital-backed companies managed to price their initial public offerings, quite a feat considering none had done so in the previous nine months. All four priced at or above the high end of expectations and now trade higher than their pricings.

Sensing the urgency to catch the market while it’s hot (relatively speaking), some venture capital firms have scrambled to get some of their best candidates in shape to file for an IPO, several investment bankers say.

“This environment has led people to start up [the IPO process] again,” said Jeff Becker, managing director with investment bank JMP Securities. “The markets have been strong, and recent IPOs have done well.”

But market observers say start-ups that are ready to go public have already done so, and that the deal pipeline will take months to rebuild.

“For anybody who isn’t already on file… you’re talking four months at the shortest, but likely six months or more” before an IPO could be priced, said Becker, who expects to see more venture-backed IPO filings this year but few pricings before Thanksgiving.

Bryan Pearce, Americas director of the venture capital advisory group at Ernst & Young, said his firm began seeing an uptick in IPO interest from its venture- and PE-backed clients around April.

“I haven’t seen signs yet that we’re going to see the floodgates open, but I think we’re starting to take logs out of the dam and the water’s starting to flow over,” Pearce said.

Pearce predicted that “2010 will be the strong year.” He said technology companies with $50 million or more in revenue should be well-positioned if they have “stability and sustainability of their customer base,” experienced management and dry powder in case the IPO window doesn’t open as expected.

The broader IPO market is far from fully recovered. As of July 31, 16 U.S. offerings totaling about $3 billion had priced this year, down from 46 IPOs totaling $30.2 billion a year earlier, according to data provider Dealogic.

The current IPO market is the worst since early 2003, despite the “incremental increase” in the number of filings over the last couple months, said Richard J. Peterson, director at Standard & Poor’s Markets, Credit & Risk Strategies group.

However, private equity-backed companies appeared to be a bright spot on an otherwise bleak picture. According to Dealogic, seven IPOs by private equity-backed companies (including venture capital) were priced as of July 31 with a total value of $1 billion. While the number is down from $2.7 billion of such offerings in the same 2008 period, it accounted for a bigger percentage of all IPOs that were priced – 33% versus 8%.”

To read the full article, click here.

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Here is a good article from The Wall Street Journal Venture Blog.

“After an anemic first quarter, venture capital investments in clean technology rose 73% in the second quarter to a total of $572.1 million, suggesting there is momentum for an industry expected to gain steam from government stimulus funding.

The number of deals in the quarter doubled from the first quarter to 48, according to data from Dow Jones VentureSource, which like VentureWire and The Wall Street Journal is owned by Dow Jones & Co. The latest figures are still below the $1.41 billion spread across 57 deals in last year’s second quarter. (See chart at the bottom.)

But the expected release of stimulus money into the sector through grants and incentives should help get investments back on track, said Joe Muscat, Ernst & Young LLP director of cleantech for the Americas.

“Barring any unforeseen capital markets circumstances, I do think we’re in a period of growth here,” Muscat said. “People are looking both at enacted legislation and at the broader climate change legislation that will be a major enabler for companies” in the sector to grow.

During the second quarter, the largest amount of investors’ money – at $157 million – went into energy and electricity generation, which includes solar, geothermal, wind and hydro power, compared with $56 million in the first quarter.

The lion’s share of the total investment in renewable power generation, or $148.2 million, went into solar deals. One of the largest deals in solar during the second quarter was a $25 million Series A round by Mountain View, Calif.-based Skyline Solar Inc., led by New Enterprise Associates.”

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