Silicon Valley Wire

Los Gatos-Based Akeena Solar Raises $12.6 Million for Expansion

Los Gatos, Calif. -- Akeena Solar, a Los Gatos-based designer and installer of solar power systems, said on Thursday that it has reached deals with investors to raise $12.6 million by selling nearly 4.6 million of its shares to private investors. The deal is expected to close on Friday,with the company using the proceedsfor growth initiatives, capital expenditures, research and development and working capital. "This financing will be used to fuel our continued growth, particularly as we expand our footprint," said Barry Cinnamon, the company's CEO. Following this transaction, Akeena will have approximately 23 million shares of stock outstanding. Founded in 2001, Akeena sells residential and small commercial solar power systems in California, New Jersey, New York, Connecticut and Pennsylvania.
http://www.akeena.net
http://biz.yahoo.com/bw/070531/20070531005329.html?.v=1

Menlo Park-Based Gizmoz Raises $6.3 Million in First Round; Launches Service

Menlo Park, Calif. -- Emerging from stealth mode, Menlo Park-based Gizmoz, developer of a new service that lets users to create 3D talking characters and videos for use in blogs, social networks and email, said on Thursday that it has raised $6.3 million in its first round of funding from Benchmark Capital and Columbia Capital. The company, which officially launched its service on Thursday, said that it will use the funds to expand its product development efforts and support its global expansion plans. "Gizmoz is all about creating a digital identity that consumers can use to express themselves across a variety of virtual venues," said Eyal Gever, the company's founder and CEO. Founded in 2003, Gizmoz also has offices in Israel.
http://www.gizmoz.com/
http://biz.yahoo.com/prnews/070531/aqth086.html?.v=6

Menlo Park-Based LiveFuels Lands $10 Million in First Round of Funding

Menlo Park, Calif. --  LiveFuels, a Menlo Park-based start-up with the goal of creating commercially competitive biocrude oil from algae by 2010, said on Thursday that it has raised $10 million in its first round of funding, led by David Gelbaum of the Quercus Trust, a major donor to conservation advocacy and environmental organizations. "This investment in LiveFuels is a sign of the growing role appropriate technology will play in protecting the environment," said Lissa Morgenthaler-Jones, the CEO of LiveFuels. "Algae can produce more energy per acre than traditional biofuel crops, and can do it on marginal land." LiveFuels said that it is collaborating with government scientists at national laboratories as well as key academic institutions to make algal biocrude competitive with fossil fuels.
http://biz.yahoo.com/prnews/070531/aqth121.html?.v=5
http://www.livefuels.com/

San Jose-Based eBay Acquires StumbleUpon for $75 Million

San Jose, Calif. -- eBay, the San Jose-based online auction giant, said that it has acquired San Francisco-based StumbleUpon, a service that lets users discover and share web sites and online videos, in a deal valued at $75 million. Founded in 2001, StumbleUpon has built a community of 2.3 million users who post 5 million recommendations daily, and also rate other users' submissions. "StumbleUpon's downloadable toolbar provides an engaging and unique experience to its users, but it is the similarities in our approaches to the concept of community that make it such a compelling addition to eBay," said Michael Buhr, a senior director at eBay, who will serve as the general manager of StumbleUpon.
http://investor.ebay.com/releasedetail.cfm?ReleaseID=246467   
http://www.stumbleupon.com 

San Mateo-Based Gemini Mobile Secures $5 Million

San Mateo, Calif. - Gemini Mobile, a San Mateo-based developer of wireless software infrastructure that includes a 3D community platform, announced that it has raised $5 million in a new round of financing, led by Japan's Access Co. New investors Aplix and Nomura Securities, and previous investor Mitsubishi-UFJ Capital also participated in the round, which follows on the company's recent $20 million investment from Goldman Sachs. Gemini provides both a messaging platform and a 3D community platform for mobile devices that lets users chat, share photos and shop on a 3D graphical interface. The technology has been employed by SoftBank Japan, Vodafone, Alcatel-Lucent and Telecom Italia.
http://www.geminimobile.com
http://www.geminimobile.com/news/pressreleases.php?20070529

Cupertino-Based Apple Debuts DRM-Free iTunes Plus, iTunes U

Cupertino, Calif. -- Cupertino-based Apple has announced the launch of iTunes Plus, a new service that will allow users to download songs without digital rights management (DRM) features that restrict their usage. Downloads on the new service will cost $1.29 a song, as compared with $0.99 for regular iTunes songs with DRM. The service has launched with tunes from major label EMI's catalog, which includes artists such as The Rolling Stones, Frank Sinatra and John Coltrane. Separately, Apple said that it has launched iTunes U, a new section on the iTunes Store that will offer free content such as course lectures, language lessons, lab demos, sports highlights and campus tours. Initial participants include Stanford University, UC Berkeley, Duke University and MIT.
http://www.apple.com/pr/library/2007/05/30itunesplus.html
http://www.apple.com/pr/library/2007/05/30itunesu.html

Fox Acquires Movie Rights to Electronic Arts' "The Sims"

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, has sold the motion picture rights to its popular game franchise "The Sims" to 20th Century Fox,  Variety reported. Fox reportedly is planning to produce a live-action movie headed by John Davis ("Eragon," "When A Stranger Calls"). Created by veteran game designer Wil Wright, the franchise has sold 85 million units and generated over $1.6 billion in sales. A script penned by Brian Lynch ("Big Helium Dog," "Scary Movie 3") is currently in the works, Variety said.
http://www.variety.com/article/VR1117965812 
http://thesims.ea.com

Valuations of Venture-Backed Companies Drop from Fourth-Quarter High

San Francisco -- The median pre-money valuation -- the values ascribed to businesses prior to funding rounds -- of U.S. venture-backed companies fell from a six-year high in the first quarter, but still remains higher than a year ago, according to new figures from Dow Jones VentureOne. The median figure was $18.5 million during the quarter, up more than $2 million from the year before but below the $20 million achieved during the fourth quarter of 2006. Biopharmaceutical companies saw the most significant increase in values, nearly doubling over the past year to $28 million. "Biopharmaceutical companies have received some successful exits in the past year via both the IPO and the acquisition route, leading investors to not only finance more companies in this sector, but also to place higher valuations on those rounds," said Jessica Canning, the director of global research at VentureOne.
http://www.ventureone.com/

MySpace Parent to Buy Palo Alto-Based Photobucket, Flektor

Palo Alto, Calif. -- Three weeks after reaching a preliminary deal, MySpace parent Fox Interactive Media (FIM) officially announced on Wednesday that it will acquire Palo Alto-based photo sharing site Photobucket for an undisclosed sum. Earlier this month, The Wall Street Journal reported the value of the deal to be $250 million in cash. FIM, a division of News Corp., also announced a separate deal to acquire Culver City-based Flektor, a developer of tools that allow users to edit video and audio and embed it on web sites, blogs or social network profile pages. FIM's properties include MySpace, IGN Entertainment, FOXSports.com and AmericanIdol.com. Photobucket is expected to remain a standalone site, with its technology and tools also being embedded in other FIM sites.
http://press.photobucket.com/blog/2007/05/important_photo.html
http://biz.yahoo.com/bw/070530/20070530005639.html?.v=1

Santa Clara-Based Agilent Technologies to Acquire Germany's Adaptif

Santa Clara, Calif. -- Agilent Technologies, the Santa Clara-based measurement technology giant, said on Wednesday that it will acquire Germany's Adaptif, which develops test products for polarization analysis technology in telecommunications. Financial terms of the deal were not disclosed. Agilent said that the acquisition will enhance its instrument portfolio for fiber-optic test. "This acquisition is one step in a series of actions we have taken to strengthen our optical test and measurement offerings and allows us to offer a full range of electrical and optical test equipment for high-speed broadband network designs," said Alois Hauk, the vice president and general manager of Agilent's Photonic and Network Test Division. The deal is expected to close in June, with all of Adaptif employees joining Agilent.
http://www.agilent.com/about/newsroom/presrel/2007/30may-gp07013.html

Mountain View-Based Google Acquires GreenBorder Technologies

Mountain View, Calif. -- Google said that it has acquired GreenBorder Technologies, a fellow Mountain View-based company that makes security software, the blog Google Operating System first reported. Financial terms of the deal were not disclosed. Founded in 2001, GreenBorder makes software designed to shield users by allowing them to conduct their Internet sessions in a protected environment. Once the user is finished surfing the web, the software discards any accumulated data, keeping  computer networks free of malicious code. GreenBorder was backed by venture capital firms including Sevin Rosen Funds and Labrador Ventures.
http://googlesystem.blogspot.com/

Santa Clara-Based Talima Therapeutics Raises $19 Million in Second Round

Santa Clara, Calif. -- Talima Therapeutics, a Santa Clara-based developer of micro-implant technology that allows doctors to deliver drugs to specific sites in the body, said that it has raised $19 million in its second round of funding. U.S. Venture Partners and Latterell Venture Partners co-led the round, which also including participation from previous investors De Novo Ventures and Palo Alto Healthcare. Talima said that it will use the proceeds to complete Phase II clinical trials. Founded in 2005, the company is initially focusing on dermatology.
http://www.talima.com/
http://www.redorbit.com/news/health/949035/talima_therapeutics_secures_19_million_series_b/index.html?source=r_health

Palo Alto-Based TCV Invests in Seismic Micro-Technology

Palo Alto, Calif. -- Technology Crossover Ventures (TCV), a Palo Alto-based venture capital firm focused on technology, said on Wednesday that it has invested an undisclosed sum in Houston-based Seismic Micro-Technology (SMT), a developer of geophysical and geological interpretation software. JMI Equity also took part in the company's first institutional round, which SMT plans to use to enhance its product development and expand its international operations. Jake Reynolds, a general partner at TCV, and David Yuan, its vice president, will both join the company's board of directors.
http://www.seismicmicro.com
http://biz.yahoo.com/bw/070530/20070530005423.html?.v=1

AOL to Launch YouTube Competitor in June

Dulles, Va. -- AOL plans to officially launch its new user-generated video upload service next month, the company's chief online video executive told Beet.TV. Fred McIntyre said that the service, known as UnCut, has been in beta testing for the past year, and will be implemented across many of the company's platform's, including its AIM instate messenger, AOL core offerings and AIM Pages social network.  "We feel that there's tremendous need for consumers to be able to upload videos and share them with each other," McIntyre told Beet.TV. "There's a whole gamut of behaviors associated with that." UnCut, which has a look and feel to it similar to YouTube, recently launched in Italy, Germany, the U.K., Spain, The Netherlands and Latin America.
http://uncutvideo.aol.com/Main.do
http://www.beet.tv/2007/05/aol_to_launch_u.html
http://journals.aol.com/uncutvideoblog/productinsider

Stratton Sclavos Resigns as CEO of VeriSign; Roper Named as Replacement

Mountain View, Calif. -- VeriSign, a Mountain View-based provider of network infrastructure services, said on Tuesday that Stratton Sclavos has resigned as its president and CEO for undisclosed reasons. The company has named William Roper, the lead independent director on its board, as his replacement. Roper, who has served as a director of VeriSign since 2003, told The Wall Street Journal that the move "was not an issue of business strategy or the status of our operations." VeriSign also said that a review of its past stock options granting practices did not find any intentional wrongdoing by and current executive, including Sclavos. Roper most recently served an executive vice president of Science Applications International Corp. (SAIC),and also was that company's CFO from 1990-2000. VeriSign also has named Edward Mueller as its chairman. Mueller, who joined the company's board in 2005, is the former CEO of specialty retailer Williams-Sonoma.
http://www.verisign.com/press_releases/pr/page_042136.html
http://online.wsj.com/article/SB118044442574417085.html?mod=yahoo_hs&ru=yahoo (subscription required)

Campbell-Based AOptix Lands $15 Million in New Funding Round

Campbell, Calif. -- AOptix Technologies, a developer of advanced iris recognition systems for government and civilian clients, said on Tuesday that it has raised $15 million in a new round of funding led by Palo Alto-based DAG Ventures. Kleiner Perkins Caufield & Byers, Clearstone, 3i and Lehman Brothers also participated. Founded by scientists from the University of Hawaii's Center for Adaptive Optics in 2000. AOptix initially focused on finding new uses for adaptive optics technology used in telescopes, but has since expanded its focus to include long-range laser communications systems and biometrics.
http://www.aoptix.com/
http://www.prweb.com/releases/venture/aoptix/prweb529498.htm

Cupertino-Based Xoomsys Raises $8 Million in Second Round

Cupertino, Calif. -- Xoomsys, a Cupertino-based developer of technologies that allow for accurate circuit simulation, said on Tuesday that it has raised $8 million in its second round of funding, led by Palo Alto-based DAG Ventures. Previous investors Benchmark Capital and Morgenthaler Ventures also participated in the round, which the company will use to expand its engineering, sales and support teams. Xoomsys' technology is designed to help designers accurately simulate nanometer effects and predict silicon behavior.
http://www.xoomsys.com/
http://biz.yahoo.com/bw/070529/20070529005506.html?.v=1

Menlo Park-Based LimeLife Lands $3.9 Million from Core Capital Partners

Menlo Park, Calif. -- LimeLife, a Menlo Park-based publisher of mobile consumer software focused exclusively on content for women, said on Tuesday that it has landed a $3.9 million investment from Core Capital Partners, a Washington, DC-based venture capital firm. LimeLife said that it will use the funds to continue developing its mobile software products and technologies. Last week, LimeLife and AT&T said that they launched new content featuring 30-minute recipes from celebrity cook and daytime host Rachael Ray. The company also has a content deal with In Style magazine, and said that it expects to announced more women-oriented content "shortly." Tom Wheeler, managing director at Core Capital Partners, will join the LimeLife's board of directors.
http://www.core-capital.com/
http://www.limelife.com

FTC Launches Investigation into Google's Acquisition of DoubleClick

Mountain View, Calif. -- The Federal Trade Commission (FTC) has launched a preliminary investigation into Mountain View-based Google's planned $3.1 billion acquisition of Internet advertising firm DoubleClick, The New York Times reported on Tuesday. Regulatory investigations into deals on such a grand scale are common, the paper said, though competitors and privacy advocates have raised red flags about the potential combination since it was announced last month. Several privacy groups reportedly had been pushing for the FTC to investigate the deal, since both Google and DoubleClick collect information track the Internet behavior of users. In their complaint, the groups said that the acquisition would give Google access to "more information about the Internet activities of consumers than any other company in the world." If approved, the deal is expected to close by the end of this year.
http://www.nytimes.com/2007/05/29/technology/29antitrust.html?ei=5065&en=ecf9786046a04f20&ex=1181016000&adxnnl=1&partner=MYWAY&pagewanted=print&adxnnlx=1180437187-EuoIe4i4wWkVvpacm7vw+g

Santa Clara-Based Hitachi Data Systems Names Minoru Kosuge as CEO

Santa Clara, Calif. -- Hitachi Data Systems, the Santa Clara-based data storage unit of Japanese consumer electronics giant Hitachi, on Tuesday named Minoru Kosuge as its new CEO, filling a void created when Dave Roberson left for Hewlett-Packard earlier this month. Kosuge, who most recently has served as the company's COO, was the chief architect of Hitachi's universal storage platform. Roberson recently was named the senior vice president and general manager of HP StorageWorks. Hitachi Data Systems also on Tuesday announced the promotion of Jack Domme as COO. Domme had been serving as the company's executive vice president of global solutions strategy and development.
http://www.hds.com/corporate/press-analyst-center/press-releases/2007/gl070529a.html

San Carlos-Based DemandTec Files to Raise Up to $86.25 Million in IPO

San Carlos, Calif. -- DemandTec, a San Carlos-based developer of consumer demand management software, has filed with the Securities and Exchange Commission (SEC) to raise up to $86.25 million in an initial public offering (IPO). The company, which plans to list its stock on the Nasdaq National Market under the symbol "DMAN," has yet to disclose details of the offering such as the number of shares or their expected price range.  DemandTec's web-based software is used by retailers and consumer products companies to define merchandising and marketing strategies based on consumer behavior. The software makes recommendations on pricing, promotion and other merchandising and marketing decisions.
http://ipoportal.edgar-online.com/ipo/displayFundamentals.asp?cikid=745248&fnid=54713&IPO=1&coname=DEMANDTEC%2C+INC%2E
http://www.demandtec.com/

Milpitas-Based Magnum Semiconductor Lands $27 Million in New Funding

Milpitas, Calif. -- Magnum Semiconductor, a Milpitas-based maker of chips and software for recording and viewing audio and video content, said that it has raised $27 million in a new round of funding, led by Investor Growth Capital. New investors WK Technology Fund, KTB Ventures and Gold Hill Capital, as well as previous investors August Capital and Investcorp Technology Partners also participated. Jack Guedj, Magnum's president and CEO, said that the round will allow his company to accelerate its research and development efforts, as well as to expand its operations to support growing sales in Japan, Korea, Europe and China.
http://biz.yahoo.com/bw/070524/20070524006105.html?.v=1
http://www.magnumsemi.com/ 

San Francisco-Based Trulia.com Lands $10 Million in Third Round

San Francisco -- Trulia.com, a San Francisco-based company that operates a residential real estate search engine, said that it has secured $10 million in its third round of funding, led by Sequoia Capital. Previous investors Accel Partners and Fayez Sarofim & Co. also took part in the round, which the company will use to fund operations, expand its employee base and develop new products and services. Launched in September 2005 by Pete Flint and Sami Inkinen, Trulia is designed to help consumers find homes for sale that meet their specific criteria. The site currently draws about 1.5 million unique monthly visitors. Trulia has raisesd $17.7 million since its inception.
http://www.trulia.com
http://sev.prnewswire.com/real-estate/20070524/AQTH09024052007-1.html

San Jose-Based KLA-Tencor Completes Acquisition of Therma-Wave

San Jose, Calif. -- KLA-Tencor, a San Jose-based developer of yield management and process control products used in semiconductor manufacturing, said on Friday that it has completed its $75 million acquisition of Fremont-based counterpart Therma-Wave. KLA agreed to buy Therma-Wave in January for $1.65 a share in a cash tender offer. "The addition of Therma-Wave’s products and expertise gives our customers an expanded offering of metrology solutions to meet their process control needs," said Rick Wallace, KLA-Tencor's CEO, in a statement.
http://www.kla-tencor.com/j/servlet/NewsItem?newsItemID=247

Google to Ban Ads from College Essay Writing Firms

Mountain View, Calif. -- Beginning next month, Mountain View-based Google will no longer accept ads from companies offering tailor-made essays for high school and college students, the BBC reported. Google reportedly has written to essay writing companies to inform them of its new policy. Matthew Wilson, the managing director of Essaywriter.co.uk, told the BBC that 80% of his business had come through Google.
http://news.bbc.co.uk/1/hi/education/6680457.stm 

San Francisco-Based nCircle Acquires Cambia Security

San Francisco -- nCircle, a San Francisco-based developer of security risk and compliance management software, said that it has acquired Georgia-based Cambia Security, a maker of software that enforces security policies. Financial terms of the deal were not disclosed. nCircle said that the acquisition will compliment its own technology. Cambia's core product continuously monitors networks for changes and allows administrators to remediate those that impact security or compliance. nCircle said that it plans to extend its appliance delivery model to Cambia's software.
http://www.ncircle.com
http://www.ncircle.com/index.php?s=news_press_2007_0523-ncircle-acquires-cambia

Palo Alto-Based Varian Medical Systems Acquires Bio-Imaging Research

Palo Alto, Calif. -- Varian Medical Systems, a Palo Alto-based developer of medical devices and software for treating cancer and other medical conditions, said on Thursday that it has acquired Illinois-based Bio-Imaging Research (BIR), a supplier of X-ray imaging products for security and inspection, for $21 million. BIR, which has approximately 50 employees, is now a part of Varian's Security and Inspection Products unit. "This acquisition enables Varian to offer customers more complete X-ray imaging solutions for cargo screening, industrial inspection and non-destructive testing," said Tim Guertin, the president and CEO of Varian.
http://varian.mediaroom.com/index.php?s=home&item=522

San Carlos-Based Nektar Therapeutics to Cut 25% of Staff

San Carlos, Calif. -- Nektar Therapeutics, a San Carlos-based biopharmaceutical firm, said on Thursday that it will cut 200 jobs, or about 25% of its staff, in an effort to reduce expenses. The company said that it will save about $65 million a year from the cuts and other cost-saving measures. "These initiatives allow the company to accelerate the development of its proprietary pipeline, and improve innovation, focus, and accountability," the company said in a statement. Nektar also announced the retirement of CFO Louis Drapeau, and said that it has promoted Hoyoung Huh to the role of COO and head of its PEGylation unit. The news sent the company's stock down 4% on Thursday.
http://www.nektar.com/wt/page/pr_1179962776/?ref=IR_Archived_Press_releases
http://biz.yahoo.com/e/070524/nktr8-k.html

Mountain View-Based SumTotal Systems Raises $35.1 Million in Offering

Mountain View, Calif. -- SumTotal Systems, a Mountain View-based developer of talent and learning management software, said on Thursday, that it has completed its direct stock offering, raising $35.1 million. The company said that it sold about 5.4 million shares for $6.50 each to several new institutional investors, as well as previous investors. "The capital will strengthen our balance sheet and allow us to continue to grow within our core learning and performance management business and to expand into other areas of talent management," Don Fowler, SumTotal's CEO.
http://www.sumtotalsystems.com/
http://biz.yahoo.com/bw/070524/20070524005519.html?.v=1

San Francisco-Based Rooftop Media Raises $2.5 Million

San Francisco -- Rooftop Media, a site that offers online stand-up and sketch comedy video and audio files, has raised $2.5 million in its first round of venture capital financing, led by Azure Capital Partners, VentureWire reported. The company's RooftopComedy.com site offers both on-demand and live streaming of stand-up and sketch comedy routines, from venues including San Francisco's SF Comedy Club, Austin's Cap City Comedy Club and Chicago Underground Comedy. The company will use the funds for product development, as well as for sales and marketing efforts.
http://www.rooftopmedia.net 
http://www.rooftopcomedy.com 

S.F.-Based Greystripe Lands $8.9 Million in New Round Led by Disney VC Arm

San Francisco -- Greystripe, a San Francisco-based distributor of ad-supported mobile games and applications, said on Wednesday that it has raised $8.9 million in its second round of funding, led by Steamboat Ventures, the venture capital arm of The Walt Disney Company. The company, which has raised a total of $10.1 million since its inception, said that it will use the proceeds to grow its business, as well as expand its reach into Europe and Asia. Greystripe offers ad-supported mobile games through its online and mobile gaming portal GameJump.com, which includes 800 free games from 70 publishers. Since its launch less than a year ago, more than 7 million games have been downloaded from the site. Greystripe also has developed a technology that automatically wraps ads with mobile games and applications, without the need for complex coding and development for content owner.
https://www.greystripe.com/
http://biz.yahoo.com/bw/070523/20070523005358.html?.v=1

San Francisco-Based Blinkx Raises $49.7 Million in London IPO

San Francisco -- Blinkx, a San Francisco-based company that operates a searchable index of web video, raised about $49.7 million Tuesday in its initial public offering (IPO) on the London Stock Exchange, which saw the company valued at nearly $355 million, the Times Online reported. Blinkx was launched three years ago in San Francisco, by a former executive at U.K.-based search firm Autonomy. That company recently exercised an option to acquire 90% of Blinkx, and merged it with its consumer search unit. Blinkx, which has indexed more than 7 million hours of video, said that it processes 1.1 million searches daily and claims 700,000 daily users.
http://www.blinkx.tv
http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article1823837.ece

Redwood City-Based Migo Software to Acquire Mountain View's MacroPort

Redwood City, Calif. -- Migo Software, a Redwood City-based developer of mobile computing software, said on Wednesday that it will acquire Mountain View-based MacroPort, a developer of mobile content management software, in an all-stock deal worth about $4.5 million. The value of the deal, expected to close by June, could rise by as much as $3 million, depending on MacroPort's future performance. MacroPort's software allows users to distribute mobile content, such as music, photos and videos, on mobile devices like cell phones and PDAs. Kent Heyman, the chairman and CEO of Migo, said that MacroPort's products "fit perfectly" into his company's platform, "and we expect this will establish us as a leader in mobile computing software and position us in the mobile device content management space."
http://www.migosoftware.com/
http://www.macro-port.com
http://biz.yahoo.com/bw/070523/20070523005389.html?.v=1

Menlo Park-Based 23andMe Closes First Round of Funding

Menlo Park, Calif. -- 23andMe, a Menlo Park-based start-up developing genetic information tools and content, said that it has received an undisclosed sum in its first round of funding, which included investments from Genentech, Google, Mohr Davidow Ventures and New Enterprise Associates. The company, which plans to launch by the end of this year, said that its mission is to empower people to access and understand thjeir genetic information through recent advances in DNA analysis technologies and web-based software tools.
http://biz.yahoo.com/bw/070522/20070522006418.html?.v=1
http://www.23andme.com/

SoundExchange to Lower Royalties for Small Webcasters

Washington, DC -- Responding to Congressional pressure to compromise on new royalty rates for streaming music, SoundExchange, the record industry entity that collects and distributes digital music royalties, said that it will extend a program that lets small Internet radio stations pay below-market royalty rates. The organization said that it will extend the Small Webcaster Settlement Act (SWSA), which initially was enacted in 2002 and expired in 2005, through 2010 in an effort to keep small webcasters from going out of business. Many webcasters have stated that new royalty rates set by the Copyright Royalty Board (CRB) are so high that they will be forced off the air. "Although the rates revised by the CRB are fair and based on the value of music in the marketplace, there's a sense in the music community and in Congress that small webcasters need more time to develop their businesses," said John Simson, the executive director of SoundExchange. To qualify, webcasters must meet the definition of "small" set forth in the original wording of the SWSA.
http://www.soundexchange.com/news/documents/SWSA%20Extension%20Release.pdf (PDF)
http://www.soundexchange.com
http://www.copyright.gov/fedreg/2002/67fr78510.html

Survey: Illegal Downloading Drops Among U.S. Youths

Washington, DC -- The number of U.S. youths illegally downloading copyrighted works off the Internet has fallen 24% over the past three years, according to a new survey by the Business Software Alliance (BSA), a trade group representing major software firms. The group cited parental oversight as a key factor in the drop in illegal downloading, from 60% of youths (ages 8-18) in 2004, to 43% in 2006 and 36% in 2007. The survey also found that in 2007, 30% of youths admitted downloading music without paying, while 8% admitted downloading a movie without paying -- both slight decreases from past years. "This study indicates that parents represent a growing and effective influence on the online practices of youth," said Diane Smiroldo, the vice president of public affairs for the BSA. "But, while decreases in downloading are encouraging over recent years, youth are still taking too many risks online."
http://www.bsa.org
http://sev.prnewswire.com/high-tech-security/20070522/NETU06022052007-1.html

Intel, STMicroelectronics to Form New Flash Memory Company

Santa Clara, Calif. -- Intel, the Santa Clara-based chip-making giant, said on Tuesday that it will partner with Switzerland's STMicroelectronics and Menlo Park-based private equity firm Francisco Partners to form a new independent chip company from the assets of businesses which last year generated approximately $3.6 billion in combined revenue. The new, unnamed company will focus on flash memory for a variety of devices, including cell phones, MP3 players, digital cameras, computers and other high-tech equipment. It will combine key research and development, manufacturing and sales and marketing elements of Intel and STMicroelectronics. Brian Harrison, the vice president and general manager of Intel's Flash Memory Group, will become the CEO of the new company. Under the terms of the deal, Intel will receive a 45.1% equity stake and $432 million in cash for its NOR flash unit, with STMicroelectronics receiving a 48.6% stake and a $468 million for its flash memory operations. Francisco Partners will invest $150 million in cash for a 6.3% stake.
http://www.intel.com/pressroom/archive/releases/20070522corp.htm?iid=pr1_releasepri_20070522r

San Francisco-Based MuleSource Raises $12.5 Million in Second Round

San Francisco -- MuleSource, a San Francisco-based developer of open source infrastructure and integration software, said on Tuesday that it has raised $12.5 million in its second round of venture capital funding, led by Lightspeed Venture Partners. The news comes just seven months after the company landed $4 million in its initial round from Hummer Winblad Venture Partners and Morgenthaler Ventures. MuleSource said that it plans to use the new capital to continue expanding its sales and support teams, and expects to double its headcount to around 50 by later this year. The company has signed alliances with major systems integrators in the U.S., Japan, Norway, U.K. and Latin America, and plans to launch a formal partner program in the coming months. 
http://www.mulesource.com/company/press_releases/SeriesB_052207.php

Cisco Systems Acquires Santa Clara-Based BroadWare Technologies

San Jose, Calif. -- Cisco Systems, the large networking technology company based in San Jose, announced that it will acquire Santa Clara-based BroadWare Technologies, a provider of Internet-based video surveillance software. Financial terms of the deal were not disclosed. BroadWare's software is used for web-based monitoring, recording and storage of audio and video. Cisco said that the acquisition will allow its customers to more easily gain access to live and recorded surveillance video. BroadWare was founded in 1995 and has 38 employees. The deal is expected to close by the end of July.
http://www.broadware.com/news/press_releases/2007/0521-Cisco

San Francisco-Based Zmanda Raises $8 Million in Second Round of Funding

San Francisco -- Zmanda, a San Francisco-based developer of open source backup and recovery software, said on Tuesday that it has raised $8 million in its second round of funding, led by Helion Venture Partners. Previous investors BlueRun Ventures and Canaan Partners also participated in the round, which the company plans to use to continue its research and development and expand its business. Zmanda flagship offering is the Zmanda Network, a suite of software and services for large-scale data backup and recovery. Earlier this month, the company named former Red Hat executive Pete Childers as its new CEO.
http://www.zmanda.com/
http://biz.yahoo.com/bw/070522/20070522005238.html?.v=1

San Mateo-Based SnapLogic Lands $2.5 Million from Dhillon Capital

San Mateo, Calif. -- SnapLogic, a San Mateo-based provider of open source Internet data services, said on Tuesday that it has landed $2.5 million in new financing from Dhillon Capital. The company said that it will use the new capital to further develop its service, as well as promote community awareness and developer contributions. Gaurav Dhillon, SnapLogic's chairman and co-founder, provided the company's initial seed funding in late 2005. The company said that its technology "transforms data into data services that can then be easily mixed and matched to satisfy any integration requirement."
http://www.snaplogic.org/ 
http://biz.yahoo.com/bw/070522/20070522005045.html?.v=1

WSJ: Facebook to Allow Companies to Create Branded Pages

Palo Alto, Calif. -- Facebook, the Palo Alto-based online social network, plans to launch a new feature that will allow companies to create branded pages on the site, the Wall Street Journal reported. The service will reportedly enable a retailer, for instance, to build a music or book recommendation service on Facebook, or allow media companies to create pages where users could share news articles. Since launching in 2004, Facebook has amassed 23 million users, and is now adding 100,000 new users each day. The company is also already profitable, and expects to see revenue of nearly $150 million this year, The Journal reported. 
http://online.wsj.com/public/article/SB117971397890009177-wjdKPmjAqS_9ZZbwiRp_CoSqvwQ_20070620.html (subscription required)
http://www.facebook.com/

SIIA Settles Software Piracy Suit for Cupertino-Based Symantec

Cupertino, Calif. -- The Software & Information Industry Association (SIIA), the principal trade group for the software and digital content industry, said on Tuesday that it has settled a software piracy suit on behalf of Cupertino-based member Symantec for $205,000. The organization filed suit after the defendant attempted to sell unauthorized Symantec software on eBay. The lawsuit was among the first filed under a new SIIA program, which monitors popular online auction sites, identifies people selling pirated software and sues them on behalf of member companies. "The sale of pirated software through online auctions is a growing problem that hurts buyers, sellers and the auction sites themselves,” said Keith Kupferschmid, the senior vice president of SIIA's Software Anti-Piracy Division. "With existing auction site tools doing little to curb the problem, SIIA has stepped up its efforts to aggressively pursue software pirates."
http://www.siia.net
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-22-2007/0004593587&EDATE=

San Mateo-Based Fabrik Raises $24.9 Million in Fourth Round of Funding

San Mateo, Calif. -- Fabrik Inc., a San Mateo-based provider of storage and content management services, said on Monday that it has raised $24.9 million in its fourth round of funding, which the company plans to use to expand into international markets. 3i led the round, which also included participation from previous investor ComVentures. "Although we're profitable from operations, this added capital accelerates our growth, and allows us to more quickly expand in the U.S and international markets as well as into new product categories," said Mike Cordano, the co-founder and CEO of Fabrik. The two-year-old company offers a blend of online services, software and devices designed to help consumers store, manage and share their digital content.
http://www.myfabrik.com/register/press_release.php?release=20070521

Redwood City-Based EA Invests $167 Million in Chinese Online Games Firm The9

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, announced on Monday that it has made a $167 million equity investment in Chinese online game operator The9, which will give it about a 15% stake in the company. EA also said that it signed an agreement giving The9 exclusive rights to operate its "FIFA Online" soccer game in mainland China. EA said that the investment meshes with its strategy to build an online presence in Asia. "FIFA Online" already claims more than 4.4 million subscribers in Korea, the result of a license deal with Neowiz. The9 also operates licensed online games including "World of Warcraft," "MU," "Joyful Journey West," "Guild Wars" and "Ragnarok Online 2" in China.
http://biz.yahoo.com/bw/070521/20070521005625.html?.v=1   
http://www.corp.the9.com 

Menlo Park-Based Intelliden Raises $10 Million in New Funding Round

Menlo Park, Calif. -- Intelliden, a Menlo Park-based developer of software designed to allow organizations to control, manage and scale their networks, said on Monday that it has secured up to $10 million in a new round of funding. Matrix Partners led the round, which also included participation from previous investors 3i, Granite Global, Hercules Technology Growth Capital and Westbury Partners. Intelliden plans to use a portion of the proceeds to expand geographically, after recently announcing its entrance into the Asia-Pacific market.
http://www.intelliden.com/pressrelease.asp?release_id=163
http://www.intelliden.com/

Fremont-Based Evergrid Lands $10 Million in Second Round of Funding

Fremont, Calif. -- Evergrid, a Fremont-based maker of resource management software for large data centers, said on Monday that it has secured $10 million in its second round of funding, led by Menlo Ventures. Previous investor Acartha Group also participated. Evergrid's software is designed to address availability and utilization issues in data centers, helping servers more quickly recover from inevitable failures. The company was founded in 2004 and is led by David Anderson, the former CEO of Sendmail.
http://www.evergrid.com/
http://biz.yahoo.com/prnews/070521/aqm017.html?.v=16

Mountain View-Based SumTotal Systems to Raise $35.1 Million in Offering

Mountain View, Calif. -- SumTotal Systems, a Mountain View-based developer of talent and learning management software, said on Monday that it expects to raise $35.1 million in a direct offering of stock to several new institutional investors. The offering is expected to close on Wednesday. "The additional cash will provide greater working capital and position us to grow within our core learning and performance management business and to expand into other areas of talent management," said Don Fowler, SumTotal's CEO.
http://www.sumtotalsystems.com/
http://biz.yahoo.com/bw/070521/20070521005443.html?.v=1

Milpitas-Based Linear Technology Opens New Design Facility in N.H.

Milpitas, Calif. -- Linear Technology, a Milpitas-based maker of linear integrated circuits, on Monday announced that it has opened a new 20,000-square-foot design facility in Manchester, New Hampshire. Linear said that it had outgrown its prior New Hampshire design center. The new center will focus on high-performance analog integrated circuits, and includes design facilities, lab and test development floor.
http://www.linear.com
http://biz.yahoo.com/prnews/070521/sfm006.html?.v=80

Media, Entertainment Organizations Launch Copyright Alliance

Washington, DC -- A new non-profit trade group made up of 29 copyright-related organizations said that it has launched with the goal of "promoting the value of copyright as an agent for creativity, jobs and growth." Members of the Copyright Alliance include the Recording Industry Association of America, Motion Picture Association of America, Entertainment Software Association, Major League Baseball, Microsoft, Viacom and Disney. Patrick Ross, a former journalist and think tank senior fellow, will head the group as its executive director. "Our common mission is to provide educational resources and promote creativity, jobs and growth through copyright," said Ross.
http://www.copyrightalliance.org/node/42