Silicon Valley Wire

Report: California's Tech Job Losses Slow Significantly

Santa Clara, Calif. -- Losses in California's tech employment have slowed significantly, according to industry trade group AeA's newly released Cyberstates report, detailing national and state trends in high-tech employment, wages, exports and other key economic factors. In 2004, the latest year for which state data is available, the sector lost only 10,600 jobs, compared with a loss of 67,800 jobs in 2003. California also continues to lead the nation in terms of high-tech payroll, average tech wage ($90,600), number of tech companies, and number of jobs in the semiconductor manufacturing, computer and peripheral equipment manufacturing and electronic components manufacturing sectors. Nationally, high-tech employment was up by 61,100 workers in 2005, the first increase in tech jobs in four years. 
http://www.aeanet.org/PressRoom/prjj_cs2006_california_ba.asp

Sunnyvale-Based Healthia Lands $7 million in Second Round

Sunnyvale, Calif. -- Healthia, a Sunnyvale-based comparison-shopping portal for health care products and services, said that it has raised $7 million in its second round of funding, led by Menlo Park-based Trinity Ventures. The company said that the round, which also included strong participation from its previous investors, will help fuel the expansion of its service. Healthia’s site, which launched in August 2005, allows consumers and small businesses to shop for and compare health savings accounts, health insurance plans and doctors. Users can also view and compare estimated prices for common medical procedures at hospitals around the country
http://www.healthia.com/press/pr2006-04-18.php

Santa Clara-Based Alliance Semiconductor to Sell Business for $5.8 Million

Santa Clara, Calif. -- Alliance Semiconductor, a Santa Clara-based makes of semiconductor products, said on Wednesday that it has signed a deal to sell its Systems Solutions business unit to Canada's Tundra Semiconductor for $5.8 million in cash. About 50 employees of thye unit working in Santa Clara and India will be hired as employees of Tundra. The deal is expected to be completed by early May. Alliance is exploring the possible sale of other business operations, as well, and has signed a letter of intent for one additional sale.
http://www.tundra.com/NewsRoom/PressReleases/2006/pr_04_19_06.cfm

Segue Shareholders Approve Acquisition by Cupertino-Based Borland

Cupertino, Calif. -- Segue Software, a Massachusetts-based maker of software quality and testing tools, announced on Wednesday that its shareholders have approved the company's acquisition by Cupertino-based Borland Software. Under the agreement, Segue will be acquired for $100 million and will operate as a subsidiary of Borland, a maker of software development tools. Borland first announced its deal for Segue in early February. Founded in 1988, Segue has about 200 employees and about $30 million in annual revenue.
http://biz.yahoo.com/bw/060419/20060419005710.html?.v=1
http://www.borland.com/us/

San Jose-Based Cisco to Invest Over $265 Million in Saudi Arabia

San Jose, Calif. -- Cisco Systems, the San Jose-based networking equipment giant, said on Tuesday that it plans to invest more than $265 million in Saudi Arabia over the next five years. Among other things, the money will go toward increasing the company's overall headcount in that country from about 70 to 600, establish 100 more networking academies in concert with local universities and sponsor a Saudi technology innovation and entrepreneurship institute, providing incubation space for local start-ups. "Saudi Arabia is experiencing a transformation as it expands its economic growth opportunities into new sectors using information technology," said John Chambers, the president and CEO of Cisco. Then company first established operations in Saudi Arabia in 1998 and now maintains offices in Riyadh, Jeddah and Khobar.
http://newsroom.cisco.com/dlls/2006/corp_041806.html

Fremont-Based Nanochip Lands First $10 Million of Third Round

Fremont, Calif. -- Nanochip, a Fremont-based developer of ultra high capacity removable storage chips for consumer electronics markets, said on Tuesday that it has raised $10 million in its third round of funding, in which the company is targeting a total of $15 million. New Investor Intel Capital led the round, with also included participation from second-round leader JK&B Capital. The company said that the remaining $5 million is being left open for other interested investors. Nanochip is developing a new class of MEMS-based storage chips, capable of storing tens of gigabytes per chip, or the equivalent of many high-definition feature-length videos.
http://www.nanochip.com/pr/pr20060418.htm

Adobe Systems Acquires Downtown San Jose Site for $25 Million

San Jose, Calif. -- Adobe Systems, the San Jose-based developer of web publishing software, said on Tuesday that it has struck deals with SJW Land Company and San Jose Water Company to purchase approximately 5.5 acres of commercial property located in downtown San Jose. The transaction, valued at $25 million, is expected to close by August. "We saw the opportunity to acquire land Adobe would need to assure future growth in downtown San Jose," said Randy Knox III, Adobe's director of real estate, facilities and security. "Although we don't have immediate plans to build on the new site in San Jose, it is an important investment in the future of Adobe and in the city." Located near Adobe's existing headquarters complex, the site could accommodate approximately 1 million square feet of office space. Headquarters for the San Jose Water Company is located on the site today, including a 15,900 square foot office building designated eligible for the National Register of Historic Places in 1990 and as a San Jose City Landmark in 1991. Adobe said any future development plans would be designed to keep the exterior of the historic building intact.
http://www.adobe.com/aboutadobe/pressroom/pressreleases/200604/041806SanJose.html

Santa Clara-Based Kaboodle Raises $3.55 Million in First Round

Santa Clara, Calif. -- Kaboodle, a Santa Clara-based start-up operating a free online service designed to simplify the process of collecting, organizing and sharing information on the web, said that it has raised $3.55 million in its first round of funding. Investors included Kanwal Rekhi, a managing director of Inventus Capital Partners; Ashish Gupta, the founder of comparison shopping engines Junglee, acquired by Amazon.com; early Google advisor Rajeev Motwani; Ron Conway, an early investor in both Google and Ask Jeeves; and Shea Ventures, Garage Technology Ventures and Alpha Group. Kaboodle's service is designed to automatically extract the relevant information from any web page, helping consumers make better choices about online shopping, travel and research.
http://www.kaboodle.com/
http://biz.yahoo.com/prnews/060417/sfm078.html?.v=49

TiVo Wins $74 Million Patent Case Against EchoStar's DISH Network

Alviso, Calif. -- TiVo, the Alviso-based provider of digital video recorders and subscription services, said that a federal jury has awarded the company $74 million in damages in its patent infringement suit against EchoStar Communications, operator of the DISH Network satellite TV service. The jury found that EchoStar willfully infringed TiVo's patent on a "multimedia time warping system" used in its digital video recorders and service. The judge may choose to triple the damages EchoStar must pay as a result of the "willful" infringement finding, although EchoStar plans to appeal. "We believe the decision will be reversed either through post-trial motions or on appeal," EchoStar said in a statement.."Additionally, the Patent Office is in the process of re-examining TiVo's patent, having determined there is a substantial question concerning the validity of the patent." TiVo plans to seek a permanent injunction against EchoStar's digital video recorders.
http://biz.yahoo.com/prnews/060413/sfth076.html?.v=44
http://www.tivo.com

Los Gatos-Based Netflix Names Head of Original Content

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental firm, has named Bahman Naraghi as its vice president and head of original content, overseeing the company's push into acquiring independent film and TV properties. Previously, Naraghi served as the COO of Intermedia Film, and before that was executive vice president of finance and operations at Miramax Films. Netflix plans to acquire and distribute independent films directly to its 4.2 million subscribers. Last week, the company acquired the documentary "The Bituminous Coal Queens of Pennsylvania" from FourBoys Films.
http://biz.yahoo.com/prnews/060417/sfm041.html?.v=49
http://www.netflix.com   

Report: In-Game Ad Market to Reach $732 Million by 2010

Boston -- The in-game advertising market is projected to reach $732 million by 2010, up from $56 million last year, according to a new report from market research firm Yankee Group. The number of video game titles that feature in-game ads is expected to double, to around 200, by the end of this year. Currently, third parties such as Massive, Double Fusion and IGN Entertainment provide the technology to deliver in-game ads in titles from game publishers including Activision, Ubisoft and Electronic Arts. Eventually, however, Yankee Group predicts that the game-makers, themselves, will serve their own in-game ads. "Although the in-game advertising market is still relatively untapped, its promising business model will lead to swift market development," said Michael Goodman, a senior analyst for Yankee.
http://biz.yahoo.com/bw/060417/20060417005184.html?.v=1
http://www.yankeegroup.com

Report: Looming SAT Exams Drive Students to Training, Education Sites

Reston, Va. -- With the SAT exams looming in early April, the popularity of online training and education sites soared during March, according to new statistics from comScore Media Metrix. Overall, the firm said that the Training and Education category rose 22% in February, with visits to the College Board Property, the official SAT site, rising 14% to 2.8 million visitors and PrincetonReview.com seeing traffic increase 39% to 693,000 visitors.  In addition, Fastweb.com, a site offering college scholarships, maintained a strong position in the category, with traffic up 35%.
http://www.comscore.com/press/release.asp?press=815

Palo Alto-Based NVP Closes New $650 Million IT Fund

Palo Alto, Calif. -- Norwest Venture Partners (NVP), a Palo Alto-based venture capital firm focused on technology, said on Tuesday that it has launched a new $650 million fund targeting early stage investments in the information technology sector. The fund, known as NVP X, is the firm's largest to date, and follows its $400 million fund that closed in 2001. The firm, which is planning to expand in both the U.S. and abroad, has funded over 400 companies since inception. NVP X's general partners include Robert Abbott, Kurt Betcher, Jeffrey Crowe, Vab Goel, Promod Haque, Matthew Howard, Jim Lussier, Venkat Mohan and George Still.
http://www.norwestvc.com/news/nvppressDrill.aspx?prID=138

Palo Alto-Based Agilent Acquires Colorado-Based SynPro

Palo Alto, Calif. -- Agilent Technologies, the Palo Alto-based measurement technology giant, said on Monday that it has acquired SynPro, a Colorado-based contract manufacturing of pharmaceutical ingredients, for an undisclosed sum. SynPro manufactures short synthetic DNA and RNA molecules that are becoming more important to the pharmaceutical and biotech industries as components of drugs for use in clinical trials. Agilent said that the deal will allow it to offer an array of new services, including the development of analytical methods and processes, stability studies, quality control and regulatory support. As part of the deal, Agilent said that it has hired 22 employees, most of whom have been working together at the Colorado facility since 2002.
http://www.agilent.com/about/newsroom/presrel/2006/17apr-gp06010.html

Backfence to Acquire Bayosphere, Expand to San Francisco

San Francisco -- Backfence, a Virginia-based company building a network of community web sites on which readers contribute the content, said on Monday that it will acquire Bayosphere and expand to the San Francisco Bay area. Financial terms of the deal were not disclosed. Bayosphere was co-founded by Dan Gillmor, the founder and director of grassroots media organization the Center for Citizen Media. Gillmor’s blog on technology and Bay Area life will be featured on Backfence’s five new Bay Area community sites, the first of which will launch in Palo Alto in May. In the meantime, the existing Bayosphere site will operate under the Backfence banner, and Gillmor’s blog will be available at www.backfence.com/bayarea. Backfence launched its first sites in McLean and Reston in May 2005 and has since added sites in Bethesda and Arlington. The sites provide localized news coverage of the communities, as well as event listings, reviews and ratings of local businesses and free classifieds. Both Backfence and Bayosphere have both received funding from Omidyar Network, the investment group founded by eBay founder Pierre Omidyar. Backfence also said that Merrill Brown, the founding editor of MSNBC.com, has been elected to its board of directors. 
http://www.backfence.com/
http://www.bayosphere.com/

San Francisco-Based CNET to Launch Video-on-Demand Service

San Francisco -- CNET, the San Francisco-based technology media company, on Monday announced plans to launch a new video-on-demand service packaging a selection of the network's video content for distribution on television and online.The service, to be known as "CNET TV," will launch initially with partners Cox Communications, TiVo and TVN Entertainment, as well as on CNET, in the second half of this year, CNET said that it has seen more than a 100% increase in the number of its videos downloaded from its various sites over the past year. The partnerships follow a successful trial run with TiVo.
http://www.cnet.com/
http://biz.yahoo.com/bw/060417/20060417005354.html?.v=1

Report: 12% of U.S. Population Listens to Internet Radio

New York -- The number of people listening to Internet radio in the U.S. has grown 50% over the past year, according to a new report from Arbitron and Edison Media Research. The firms said that about 30 million people -- or 12% of the U.S. population -- reported having listened during the past week. That figure is up from 8% in 2005. "Consumers are quickly embracing radio's digital platforms and this new research reveals that these advertising vehicles are becoming increasingly viable," said Bill Rose, the senior vice president of marketing for Arbitron.
http://vocuspr.vocus.com/VocusPR30/DotNet/Newsroom/Query.aspx?SiteName=arbitron&Entity=PRAsset&SF_PRAsset_PRAssetID_EQ=134785&XSL=PressRelease&Cache=True

Report: Buyout Funds Taking Greater Slice of Investment Versus VCs

New York -- The total dollar amount ($6.5 billion) raised by U.S. venture capital firms in the first quarter declined by 13.1% over the prior three months, according to a new report from Thomson Venture Economics and the National Venture Capital Association (NVCA). Meanwhile, total private equity fundraising had another strong quarter, with 93 funds raising a combined $31.4 billion. "Buyout funds have historically raised 2-3 times more dollars than venture funds. However, we are now seeing that number creep up to 4 times as much," said Daniel Benkert, a senior analyst at Thomson Financial.
http://www.nvca.org/

San Francisco-Based Zoom Systems Raises $10 Million in Third Round

San Francisco -- Zoom Systems, a San Francisco-based maker of 40-square-foot robotic stores used in places such as airports, hotels and malls, said that it has raised $10 million in its third round of funding, led by Goldman, Sachs & Co. Also participating in the round was Zoom's chairman, Bruce Quinnell, the former vice chairman, president and COO of retailer Borders Group. The company's robotic stores are located in high traffic areas, and allow shoppers to select products through a touch screen graphic interface. They can pay for items with a  credit or debit card and receive them from a robotic arm. All of Zoom's stores are networked and centrally monitored. Sierra Ventures and NeoCarta Ventures led earlier rounds of financing for Zoom.
http://www.zoomsystems.com/aboutZoom.html

Milpitas-Based JDSU to Acquire Camarillo-Based Test-Um

Milpitas, Calif. -- JDSU, a Milpitas-based maker of communications test and measurement equipments, said on Thursday that it will acquire Camarillo-based home networking test instrument maker Test-Um for an undisclosed sum. JDSU said that the acquisition, which will create new sales channels for its field test instruments, as well as Test-Um’s home networking product portfolio, is expected to close later this quarter. Test-Um's test instruments verify the ability of home wiring to support new, high-bandwidth voice, data and video services. The company's 30 employees will join JDSU.
http://www.jdsu.com/index.cfm?newsid=419&pagepath=News/News_Releases&id=1851

San Francisco-Based Automattic Raises First Round of Funding

San Francisco -- Automattic, a San Francisco-based developer of open source blogging technologies, said on Thursday that it has raised an undisclosed amount in its first round of funding. Polaris Venture Partners led the round, which also included participation from Blacksmith Capital, CNET and Radar Partners. The company said that it will use the funding for product development and service infrastructure. Founded in August 2005, Automattic is a startup best known as the creator of the WordPress blogging platform and the Akismet blog spam blocking technology.
http://www.automattic.com/
http://biz.yahoo.com/bw/060413/20060413005649.html?.v=1

Sprint Nextel Launches Child Locator Service Developed by WaveMarket

Emeryville, Calif. -- Sprint Nextel, the recently merged wireless giant, said on Thursday that it has become the first U.S. wireless carrier to launch a location-based service designed to let parents use a phone or PC to pinpoint the location of a child carrying any of 30 GPS-enabled phones. To activate the service, developed by Emeryville-based WaveMarket, parents and guardians can list up to four phone numbers they want to locate. The service, which costs $9.99 a month, then uses GPS technology to pinpoint the location and display it on an interactive map, along with the street address and surrounding landmarks, on the parent's or guardian's phone or PC. The child is notified by a text message each time his or her location has been provided. Both parent and child must be subscribers to either Sprint or Nextel.
https://sfl.sprintpcs.com/finder-sprint-family/signIn.htm
http://biz.yahoo.com/bw/060413/20060413005019.html?.v=1

Alviso-Based TiVo Signs Three-Year Extension with DirecTV

Alviso, Calif. -- TiVo, the Alviso-based provider of digital video recorders and subscription services, said that it has signed a three-year extension of an agreement to provide its service to satellite TV firm DirecTV. Financial terms of the deal were not disclosed. As part of the deal, the two companies also agreed not to assert patent rights against one another; TiVo is currently embroiled in a digital video recorder patent lawsuit with DirecTV rival EchoStar Communications. DirecTV, which has moved to deploy its own digital video recorder set-top to its subscribers, will continue to service more than 2 million existing DirecTV receivers with TiVo's service. 
http://www.tivo.com/cms_static/press_85.html

Social Networking Site Meetup.com Lands $2 Million Investment from eBay

San Jose, Calif. -- Meetup.com, a social networking site used by many grassroots political groups, said in an SEC filing that it has received a $2 million investment from San Jose-based online auctioneer eBay. New York-based Meetup.com announced last month that investors including eBay, eBay founder Pierre Omidyar's Omidyar Network, Draper Fisher Jurvetson, Esther Dyson, Allen & Company and Senator Bill Bradley had acquired a 10% stake in the company. The revelation of eBay's stake was made to dispel any notion of conflict with its founder's investments. Since gaining attention during the 2004 presidential election, Meetup.com has seen its user base grow to include groups created by mothers, dog owners and NASCAR fans, who use the service to organize real-world meetings.
http://press.meetup.com/watch/archives/cat_meetup_announcements.html

Mountain View-Based MetroFi Beats Out EarthLink for Portland Wi-Fi Deal

Mountain View, Calif. -- Though it has recently succeeded in winning competitive contract bids to build metro-wide Wi-Fi networks in San Francisco and Philadelphia, as well as two smaller California municipalities, EarthLink, one of the country's largest ISPs, has lost its try for a similar deal with Portland, Ore. MetroFi, a Mountain View-based Wi-Fi service provide, has edged out EarthLink for the Portland contract. MetroFi has built and operates Wi-Fi wireless broadband networks in Cupertino, Santa Clara, and Sunnyvale.
http://www.metrofi.com/press.html

Report: Iceland Now Leads World in Broadband Penetration

Paris -- Iceland now leads the world in broadband penetration, with 26.7% of its citizens now accessing the Internet through a high-speed connection, according to a report from the Organization for Economic Cooperation and Development (OECD). Iceland edged long-time leader Korea (25.4%), as well as the Netherlands and Denmark, all of whom now claim greater than 25% broadband penetration. The U.S. ranks 12th, just behind Japan. Overall, the OECD said that the number of broadband subscriptions among its 30 member countries grew from 136 million in June 2005 to 158 million by December. The U.S. has the largest total number of broadband subscribers, with 49 million.
http://www.oecd.org/sti/ict/broadband

Redwood Shores-based Oracle to Buy Portal Software for $220 Million

Redwood Shores, Calif. -- Oracle, the Redwood Shores-based business software giant, said on Wednesday that it will pay $220 million in cash to acquire Cupertino-based Portal Software, a maker of billing and revenue management software for the telecommunications and media markets. Portal's management and employees will form a dedicated global communications business unit within Oracle, concentrating on billing and revenue management. Bhaskar Gorti, Portal's current senior vice president of worldwide sales, services and marketing, will lead the unit as general manager, and Dave Labuda will become the unit's CTO. The deal is expected to close in June.
http://www.oracle.com/corporate/press/2006_apr/portal.html

Redwood City-Based Authernative Raises $2.5 Million in First Round

Redwood City, Calif. -- Authernative, a Redwood City-based developer of user authentication and identity management software, said on Wednesday that it has raised $2.5 Million in its first round of funding. Participants included First Round Capital and WS Investments, as well as private investors Dave Duffield, Peggy Taylor, Ron Conway and Scott Seligman. Authernative's products are used to prevent unauthorized access to confidential data, identity theft and financial loss. The company plans to use the funds to build awareness of its products, as well as expand its sales efforts.
http://www.authernative.com/news.4.12.2006.shtml

Movaz Networks, Olympus Launched San Jose-Based Joint Venture

San Jose, Calif. -- Movaz Networks, a maker of optical networking products, said that it has formed a new San Jose-based joint venture with Japanese technology conglomerate Olympus that will develop Micro Electro-Mechanical Systems (MEMS) technologies for optical equipment suppliers. The joint venture, called Olympus Microsystems America, is expected to have gross sales of $60 million within five years.  Lawrence Wang, an executive with Olympus, will serve as the president of the new company.
http://www.olympusmicrosystems.com/release_20060412.html

Palo Alto-Based HP Wins $236 Million IT Deal from Avago Technologies

Palo Alto, Calif. -- Hewlett-Packard, the Palo Alto-based technology giant, said on Wednesday that it has won a $236 million deal to provide information technology services and operations management to San Jose-based semiconductor firm Avago Technologies. Under the terms of the 10-year agreement, HP will provide application, server, network, desktop and print management, as well as IT help desk services. Eugene Lau, the CIO of Avago, said that the service will allow his company to become "agile and cost competitive." Avago became an independent company last year when it was acquired by Kohlberg Kravis Roberts and Silver Lake Partners.
http://www.hp.com/hpinfo/newsroom/press/2006/060412a.html

29 Bay Area Companies Named to 2006 Fortune 500 List

San Francisco -- Twenty-nine companies from the Bay Area have been included in the newly released Fortune 500 list, an annual ranking of America's largest corporations. Among technology companies, Palo Alto-based Hewlett-Packard leads the way at No. 11, with $86.7 billion in annual revenue. San Francisco-based healthcare technology firm McKesson came in at No, 6, followed by Santa Clara-based Intel (No. 49)and San Jose-based Cisco Systems (No. 83). A complete list can be found at the link below.
http://money.cnn.com/magazines/fortune/fortune500/

Los Altos-Based Rambus Names Satish Rishi as New CFO

Los Altos,. Calif. -- Rambus, a Los Altos-based designer of high-speed chip interfaces, on Wednesday named Satish Rishi as its senior vice president of finance and CFO. Rishi previously served as the executive vice president of finance and CFO of Toppan Photomasks, and also has served as assistant treasurer at both Dell and Intel. He replaces Robert Eulau, who resigned after becoming gthe CFO of Morgan Hill-based Alien Technology.
http://www.rambus.com/news/pressrelease.aspx?id=206

Report: Consumer Adoption of New Media to Boost Media Revenues

Monterey, Calif. -- Consumer adoption of new media technologies will significantly boost media revenues in 2006 and beyond, according to a new report by Monterey-based market research firm Kagan Research. The firm said that online ad market is projected to grow from $14.5 billion in revenue this year to $33.4 billion by 2016, with gains in the wireless data and satellite radio industries also expected. "The survivors will be the ones who figure out how to embrace the new and bring their media into the digital age," said Deana Myers, a senior analyst with Kagan.
http://www.kagan.com/media06

Fremont-Based AngioScore Raises $30 Million in Fourth Round

Fremont, Calif. -- AngioScore, a Fremont-based developer of angioplasty catheters used to treat coronary and peripheral artery disease, said on Tuesday that it has raised $30 million in its fourth round of private equity financing, led by Telegraph Hill Partners. New investor QuestMark Partners and previous investors Psilos Group Management, UV Partners, California Technology Ventures and Innomed Ventures also participated. Thomas Trotter, the president and CEO of AngioScore, said that the funds will be used primarily to expand the company's manufacturing effort, as well as to launch new products in the U.S. market.
http://www.angioscore.com/news/pr_041106.aspx

Santa Clara-Based ShotSpotter Lands $9.4 Million in Second Round

Santa Clara, Calif. -- ShotSpotter, a Santa Clara-based developer of gunshot location systems and technology, said on Tuesday that it has raised $9.4 million in its second round of funding, co-led by City Light Capital and Claremont Creek Ventures. Other investors include Lauder Partners, which led the company's first round in 2004, RNR Ventures, Labrador Ventures and the Band of Angels. This is the company's first equity financing since last year's merger with Centurist Systems, in which the company acquired key intellectual property behind the wireless sensor it is now shipping. Shotspotter's flagship product is designed to detect gunfire and other weapons-events across large urban areas using a small number of sensors. Customers include the FBI, the National Law Enforcement and Corrections Technology Center, the U.S. Attorney's Office and numerous state and municipal governments.
http://www.shotspotter.com/Series%20B%20Funding%20Release.htm

eBay's Skype Acquires San Francisco-Based Camino Networks

San Francisco -- Skype, the Internet telephone company recently acquired by San Jose-based eBay, said on Tuesday that it has acquired Sonorit Holding and its San Francisco-bases subsidiary, Camino Networks, for approximately $27 million in eBay stock. Skype said that adding Camino, a developer of voice technology for the Internet, will allow it to add experts in online voice engineering to its own team of technologists. eBay said that it expects the acquisition to be immaterial to its full-year 2006 earnings.
http://biz.yahoo.com/bw/060411/20060411005435.html?.v=1

Palo Alto-Based Bayhill Therapeutics Raises $15.8 Million in New Funding

Palo Alto, Calif. -- Bayhill Therapeutics, a Palo Alto-based developer of drugs for the treatment of autoimmune diseases, said on Tuesday that it has landed $15.8 million in new private equity to close its second round at $51.2 million. Bayhill said that all funds came from its extensive list of previous investors. The news comes as the company said that ti has begun dosing patients with a new experimental drug candidate as part of a Phase II trial for multiple sclerosis.
http://www.bayhilltx.com/PressRelease_9.html

S.F.-Based CNET Teams with CEA on Interactive Buying Guides

San Francisco  -- The Consumer Electronics Association said on Tuesday that it has teamed with San Franciisco-based technology media company CNET to produce a series of interactive buying guides about consumer electronics products. The CEA said that the guides, available on its www.MyCEknowhow.com site, as well as on CNET.com, are aimed at easing consumer confusion about technology and reducing the rate of product returns. The brand-neutral guides are currently available for digital imaging products and MP3 players, with digital television, audio and wireless products scheduled to be added by year's end. Todd Thibodeaux, the CEA's senior vice president of industry relations, said that his organization is encouraging retailers, consumer education and shopping portals to link to the guides from their web sites.
http://www.myceknowhow.com/
http://www.cnet.com/

Survey: U.S. Cell Phone Owners Wants Mobile Maps, Instant Messaging

Washington, DC -- Mobile maps top the list of desired features for U.S. cell phone users, followed by instant messaging, search functionality and email, according to a new survey by the Associated Press, AOL and the Pew Internet & American Life Project. Overall, 65% of cell owners said that they have purchased wallpaper or ringtones, 35% have used text messaging and 8% said they've used their phones to vote in a contest such as "American Idol." While just 4% of respondents said that they have used their phones to access mobile map, nearly half said that they would like to.
http://www.pewinternet.org/PPF/r/179/report_display.asp

San Jose-Based VeriFone to Pay $793 Million for Israel's Lipman Electronic

San Jose, Calif. -- In a marriage of two of the largest maker of point-of-sale electronic payment technologies, San Jose-based VeriFone Holdings said on Monday that it will acquire Israel's Lipman Electronic Engineering for approximately $793 million in cash and stock. The deal is expected to close by the end of October, when VeriFone will continue to trade on the New York Stock Exchange and be dual listed on the Tel Aviv Stock Exchange. Douglas Bergeron, the chairman and CEO of VeriFone, said that the two companies compliment each other geographically, with the acquisition making VeriFone either No. 1 or No. 2 in most key markets worldwide.
http://ir.verifone.com/phoenix.zhtml?c=187628&p=irol-newsArticle&ID=840503&highlight=

Sunnyvale-Based Before The Call Lands $2.54 Million in First Round

Sunnyvale, Calif. -- Before the Call, a Sunnyvale-based developer of sales intelligence applications, said on Monday that it has raised $2.54 million in its first round of funding, led by Menlo Park-based Gould Investments. Other contributors included The Band of Angels, Epiphany founder Steve Blank and Martin Brauns, the former CEO of Interwoven. The company plans to use capital to finance its go-to-market strategy. Before the Call's applications provide details about each sales lead and ranks the leads according to the criteria that the user chooses, including industry, company size or location.
http://www.beforethecall.com/
http://biz.yahoo.com/bw/060410/20060410005434.html?.v=1

Milpitas-Based Aperto Networks Raises $26 Million in Follow-On Round

Milpitas, Calif. -- Aperto Networks, a Milpitas-based maker of wireless Internet base stations and subscriber units, said on Monday that it has raised $26 million in a new follow-on round of funding, increasing its total capitalization to $120 million. Florida-based GunnAllen Venture Partners led the round, which also included participation by previous investors JK&B Capital, Canaan Partners, Alliance Ventures, Innovacom, JAFCO and Labrador Ventures. Aperto's WiMAX products enable broadband wireless access for business-grade users and consumers. The company raised $17 million its fifth round last September.
http://www.apertonet.com/
http://biz.yahoo.com/bw/060410/20060410005410.html?.v=1

San Mateo-Based Jigsaw Data Raises $12 million in Third Round

San Mateo, Calif. -- Jigsaw Data, a San Mateo-based company operating an online global marketplace for buying, selling and trading business contact information, said on Monday that it has secured $12 million in its third round of financing led by Texas-based venture capital firm Austin Ventures. Previous investors El Dorado Ventures and Norwest Venture Partners also participated in the round, which the company plans to use to expand its data operations, business development and marketing initiatives. Jigsaw's online marketplace launched 15 months ago and now has more than 2.7 million contacts at over 160,000 companies.
http://www.jigsaw.com/
http://biz.yahoo.com/bw/060410/20060410005320.html?.v=1

San Carlos-Based diCarta to Merge with Mass.-Based Emptoris

San Carlos, Calif. -- DiCarta, a San Carlos-based developer of contract management software, said on Monday that it will merge with Emptoris, a Massachusetts-based provider of supply management software. Financial terms between the two privately held firms were not disclosed. The combined company will have about 360 employees and will continue operations under the Emptoris name, with its headquarters in Burlington, Mass. DiCarta's California offices also will be maintained.
http://www.emptoris.com/newsroom/pressreleases/news_press88.asp

PayPal Launches Text Message-Based Payment Service

San Jose, Calif. -- PayPal, the online payments arm of San Jose-based eBay, has launched a new text message-based payment service for U.S. and Canadian consumers, with firms including 20th Century Fox Home Entertainment, Bravo, MTV and the NBA already signed on to the offering. The service will allow companies to feature a "Text to Buy" logo in their advertising campaigns, with a corresponding code that consumers can type into their phones to purchase goods and services through their established PayPay accounts. PayPal has more than 100 million accounts worldwide.
https://www.paypal.com/mobile

Survey: Venture Capitalists, CEOs Differ in Approaches, Yet Share Goals

San Francisco -- U.S. venture capitalists and the CEOs of the companies they fund often have different perspectives on board-related issues yet still share common concerns, according to a new study by the National Venture Capital Association (NVCA) and San Francisco-based Dow Jones VentureOne. "These individuals are thinking about the same issues but their perspectives and priorities often differ,” said Mark Heesen, president of the NVCA. For instance, venture capitalists believe the ideal number of board seats is an average of 4.6 for early stage companies and 5.5 for later stage companies, while CEOs would prefer just 4.0 and 4.6, respectively. According to the venture capitalists, the issues of greatest concern for boards are management transitions (64%) and exit strategies (58%), while CEOs said that they are financing strategies (48%) and exit strategies (47%). When it comes to the most common drivers of conflict between the board and CEO, venture capitalists cited personality conflicts, exit strategies and management changes, while CEOs named valuation, burn rates and exit strategies. As for the primary benefits venture capitalists provide to a company board, both parties agreed that VC expertise in raising new rounds of financing is most important, followed by the ability to help recruit top talent to the company. 
http://www.nvca.org/
http://biz.yahoo.com/prnews/060410/nym018.html?.v=48

Report: Number of Online Banking Customers Grows 27% in Year

Reston, Va. -- Incentives, such as fee-free accounts and high-yield returns, coupled with decreased concerns about security have helped drive the number of online banking customers in the U.S. up sharply over the past year, according to new figures from comScore Networks. The firm said that there were nearly 40 million online banking customers during the fourth quarter, up 27% from the prior year, while the use of online bill payment services grew 36%. When asked about reasons for enrollment, a third of new users cited the free banking products that were offered as an inducement, and nearly a quarter said that they felt more secure about online banking than they did previously.
http://www.comscore.com/press/release.asp?press=801

San Mateo-Based YouTube Raises $8 Million in Second Round

San Mateo, Calif. -- YouTube, a San Mateo-based video sharing site that launched in February 2005 and now serves over 35 million video streams daily, said that it has received $8 million in its second round of funding from Menlo Park-based Sequoia Capital. YouTube sees 35,000 new video clips uploaded each day, ranging from music videos and branded network clips to amateur fare. The company claims 100 million daily page views and 6 million unique users daily. The site gained exposure when several "Saturday Night Live" clips were posted and gained record traffic; YouTube has since taken down the copyrighted material at the request of NBC. The company will use the funds to expand its sales and marketing efforts, as well as its infrastructure.
http://www.youtube.com/t/pr_060405_funding\

Palo Alto-Based StemCells Inc. Raises $35.8 Million in Stock Sale

Palo Alto, Calif. -- StemCells Inc., a Palo Alto-based developer of stem cell therapies to treat diseases of the nervous system, liver and pancreas, said on Friday that it has raised $35.8 million by selling 11.75 million of its shares to institutional investors for $3.05 each. The company received $33.2 million, after expenses. "The net proceeds from this offering, together with our cash on hand, will allow us to commit fully to the execution of our business plan," said Martin McGlynn, the president and CEO of StemCells. StemCells has approximately 40 U.S. and 100 non-U.S. patents.
http://www.stemcellsinc.com/news/060407.html

Adobe, Verizon Wireless Bringing Flash to Cell Phones

San Jose, Calif. -- Adobe Systems, the San Jose-based maker of creative, business and mobile software, said that it has partnered with Verizon Wireless to develop a version of its Flash animation software for mobile phones. The companies did not say when Verizon phones with embedded Flash technology would come to market. NTT DoCoMo and other Japanese carriers already support Flash, but Verizon is Adobe's first U.S. network partner. Pacific Crest research analyst Steve Lidberg told Reuters that Adobe's deals with U.S. carriers could result in another million developers using Flash, which in turn could generate a windfall of about $1 billion for the company.
http://biz.yahoo.com/bw/060405/20060405005243.html?.v=1
http://today.reuters.com/business/newsArticle.aspx?type=technology&storyID=nN05377260