Silicon Valley Wire

San Francisco-Based Carbonflow Raises $4.2 Million in Second Round

San Francisco -- Carbonflow, a San Francisco-based developer of software for managing carbon reduction projects, said it has raised $4.2 million in its second round of funding, led by OVP Venture Partners. @Ventures and Clean Pacific Ventures also participated in the round, which the company will use to expand its global sales presence and accelerate the release of new software products and services. Founded in 2006, Carbonflow offers browser-based products and services that help organizations manage and monitor carbon projects through an online, multi-party platform.
http://www.carbonflow.com
http://www.carbonflow.com/wp-content/uploads/2009/12/CARBONFLOW-PR-Venture-Financing.pdf (PDF)

San Jose-Based Adobe Completes Tender Offer for Day Software

San Jose, Calif. -- Adobe Systems, the San Jose-based maker of web and desktop publishing software, said on Friday it has completed its cash tender offer for Day Software, an enterprise content management firm with dual headquarters in Boston and Switzerland. More than 98% of Day shares were accepted. Adobe, which first announced the $240 million deal in July, said the acquisition will strength its web content management, digital asset management and social collaboration offerings. Day will operate as a product line within Adobe's Digital Enterprise Solutions unit, with CEO Erik Hansen joining the company in an unspecified role. Day, which has 146 employees, boasts a client list that includes BMW, General Motors, Nissan, Williams Sonoma, Hyatt, Intercontinental Hotels Group, McDonalds, Newsweek and MTV.
http://www.adobe.com  
http://www.day.com
http://www.adobe.com/aboutadobe/invrelations/dayacquisition.html
http://www.businesswire.com/news/home/20101028007443/en/Adobe-Successfully-Completes-Acquisition-Day-Software

Survey: Silicon Valley Venture Capitalists Felling More Confident

San Francisco -- Area venture capitalists are feeling more confident About their future prospects, according to the newly released third-quarter Silicon Valley Venture Capitalist Confidence Index. The index, based on a September survey of 37 Bay Area venture capitalists, registered 3.7 on a five-point scale -- up from 3.28 last quarter. Study author Mark Cannice, a professor of entrepreneurship and innovation at the University of San Francisco, said the figures were buoyed by increased exit opportunities, particularly mergers and acquisitions, along with emerging market and monetization opportunities. A concurrent survey of venture capitalists in China found confidence declining somewhat, though still at a historically high level (4.03 on a five-point scale).
http://www.usfca.edu/bps/
http://www.businesswire.com/news/home/20101027007374/en/Venture-Capitalists%E2%80%99-Confidence-Springs-Silicon-Valley-Edges

PayPal Names Winners of Second PayPal X Developer Challenge

San Jose, Calif. -- PayPal, the San Jose-based online payments unit of eBay, on Thursday announced the winners of its second PayPal X Developer Challenge. iConcessionStand, which has introduced a new way to shop and pay for products on mobile devices at live events, was chosen by a panel of venture capitalists to take the $100,000 grand prize. The company's mobile app helps consumers skip standing in long concession lines, allowing them to place orders and pay through their PayPal account. They are then  alerted when the order is ready for pickup. Nine other developers captured best-of-category awards, as well as community and audience favorite awards, for implementations of PayPal's APIs for an app or service. A complete look at all the winners is available at the bottom link below.
http://www.iconcessionstand.com/
https://www.x.com/
http://www.businesswire.com/news/home/20101028006064/en/PayPal-Announces-Winners-PayPal-Developer-Challenge

San Mateo-Based uCirrus Raises $4 Million in New Funding

San Mateo, Calif. -- uCirrus, a San Mateo-based developer of a real-time operating platform, said it has raised $4 million in a new round of funding, led by SK telecom ventures. Qualcomm Ventures and ATA Ventures also participated. The company said it will use the proceeds to support customer growth and accelerate the product roadmap for its PUSHvm platform for enterprise and web application acceleration. The company, founded by Ray Huetter and Joe Ward, said its software can maximize the potential of multicore processors running on commodity hardware.
http://www.ucirrus.com
http://finance.yahoo.com/news/uCIRRUS-Closes-4M-Investment-prnews-1634794218.html?x=0&.v=1

Menlo Park-Based Pacific Biosciences Raises $200 Million in IPO

Menlo Park, Calif. -- Pacific Biosciences, a Menlo Park-based developer of technology for biological analysis, has raised $200 million in its initial public offering (IPO) after pricing 12.5 million shares at $16 each. The offering price was the midpoint of the company's expected range of $15-$17. The company is now trading under the symbol "PACB" on the Nasdaq Global Select Market. The news comes four months after Pacific Biosciences received a $50 million investment from San Diego-based Gen-Probe as part of a larger partnership to co-develop integrated clinical diagnostics systems. The company's SMRT Platform is used by researchers to study the synthesis and regulation of DNA, RNA and protein.
http://www.pacificbiosciences.com/
http://www.sec.gov/Archives/edgar/data/1299130/000119312510237221/d424b1.htm

PayPal to Launch New Micropayments Service; Facebook on Board

San Jose, Calif. -- PayPal, the San Jose-based online payments arm of eBay, said it plans to launch a new micropayments service that will let users pay for digital goods and content without leaving a publisher's site. The company called it "the online equivalent of dropping a quarter in the slot to buy a newspaper or play a video game." Social networking giant said it plans to integrate the service into its site, allowing users to purchase its Facebook Credits. Other sites, including FT.com, GigaOM, Justin.tv, Ooyala, Tagged and Ustream, also are on board. Pricing will be 5% plus $0.05 for purchases under $12, which PayPal says is "lower than the fees typically charged by payment processors in the digital goods industry."
http://www.paypal.com/digitalgoods
http://www.businesswire.com/news/home/20101026006381/en/PayPal-Unveils-Payment-Solution-Digital-Goods 

Google to Provide $5 Million in Grants to Journalism Non-Profits

Mountain View, Calif. -- Hoping to encourage innovation at the grassroots level, Mountain View-based Google said it will provide $5 million in grants to non-profits "working to develop new approaches to journalism in the digital age." The company said it will give $2 million to the Florida-based Knight Foundation, which has a history of supporting electronic journalism projects, with the remaining $3 million funding similar projects in other countries. "We look forward to working with the journalism community to help digital news move forward," wrote Nikesh Arora, the president of Google's global sales operations and business development unit, in the company's blog.
http://googleblog.blogspot.com/2010/10/5-million-to-encourage-innovation-in.html

Mountain View-Based Nexenta Systems Raises New Round of Funding

Mountain View, Calif. -- Nexenta Systems, the Mountain View-based developer of an open source storage systems, said on Wednesday it has landed an undisclosed amount in a new round of funding, co-led by Translink and Korea Telecom. Previous backers Javelin and WTI also participated. The company said the financing comes at a time of rapid growth, with 59% revenue growth in the third quarter, compared with the same period in 2009, and its 2000th customer deployment. Founded in 2005, Nexenta is creator of the NexentaStor storage system, built on the open source ZFS file system, and also sponsors the NexentaCore open source operating system.
http://www.nexenta.com
http://www.businesswire.com/news/home/20101027006655/en/Nexenta-Systems-Announces-Strategic-Funding-Record-Growth

San Mateo-Based adap.tv Raises $4.5 Million in New Funding

San Mateo, Calif. -- adap.tv, a San Mateo-based provider of video advertising management services, has raised $4.5 million in a new round of equity funding, according to a filing with the Securities and Exchange Commission (SEC). Seven investors participated in the round, which increased the company's total backing to $30 million. Previous backers include Spark Capital, Redpoint Ventures and Gemini Israel Fund. adap.tv offers a video ad exchange, designed to connect advertisers, agencies, publishers and ad networks.
http://www.adap.tv 
http://www.sec.gov/Archives/edgar/data/1408377/000140837710000003/xslFormDX01/primary_doc.xml

Mountain View-Based Pelican Imaging Raises $10 Million in Second Round

Mountain View, Calif. -- Pelican Imaging, a Mountain View-based developer of computational imaging technology, said on Tuesday it has raised $10 million in its second round of funding, led by Globespan Capital Partners. Granite Ventures, InterWest Partners and In-Q-Tel -- a venture fund backed by the CIA -- also participated. The two-year-old company, which previously had raised $7 million in its first round and an unspecified amount from In-Q-Tel earlier this year, said it will use the funds to prepare its camera technology and software for commercialization in smartphones. Pelican said its technology will allow for significantly thinner cameras with processing software that doesn't compromise image quality but lets users interact with the image before and after capturing the shot.
http://www.pelicanimaging.com
http://www.pelicanimaging.com/10M%20Series%20B%20-%20Schiffman%20Joins%20Pelican.htm

Gideon Mantel to Retire as Commtouch Chairman and CEO

Sunnyvale, Calif. -- Commtouch, a Sunnyvale-based developer of Internet security technology, said on Wednesday that Gideon Mantel will retire as its chairman and CEO on Jan. 1. The company has named COO Ido Hadari as his replacement as CEO, and board member Lior Samuelson as chairman. Mantel co-founded the company nearly 20 years ago, serving as CEO for the past 13 years and chairman for the past four. Hadari joined Commtouch in 2008, previously serving as its vice president of international sales and business development before assuming the role of COO in November. "After extensive planning together with the board, it is very exciting to bring our strategic succession plan to fruition," said Mantel.
http://www.commtouch.com
http://www.commtouch.com/press-releases/commtouch-announces-gideon-mantel-retire-2011-ido-hadari-succeed-ceo

Pair of S.F. Firms Crack Top 20 of Forbes' "Best Small Companies" List

San Francisco -- Dolby Laboratories, the San Francisco-based developer of digital audio and surround-sound technologies, is the highest-ranked Bay Area company on Forbes' newly released list of America's 100 Best Small Companies. Dolby, with sales of $859 million and annual sales growth of 21%, came in at No. 17. Another San Francisco-based company, online commercial real estate marketplace LoopNet, ranked No. 20. The annual list ranks publicly traded businesses with sales under $1 billion and share prices of at least $5, based on factors such as earnings growth, sales growth, return on equity and stock performance. The complete list is available at the link below. 
http://www.forbes.com/lists/2010/23/best-small-companies-10_rank.html

San Mateo-Based iCiX Raises $6 Million in Second Round

San Mateo, Calif. -- iCiX, the San Mateo-based developer of a web-based network for analyzing supply chain risk and managing supplier information, said on Monday it has raised $6 million in its second round of funding, led by Draper Fisher Jurvetson. Starfish Ventures also participated in the round, which the company will use to accelerate product development, sales and marketing. iCiX's network is used by companies to manage the exchange of quality and compliance information -- such as recalls, certifications and test results -- between buyers and suppliers. More than 70,000 facilities currently use the system, including six of the 10 largest retailers.
http://www.icix.com
http://www.businesswire.com/news/home/20101025005755/en/Draper-Fisher-Jurvetson-Leads-6-Million-Investment

Sunnyvale-based Trimble Acquires ThingMagic

Sunnyvale, Calif. -- Trimble, a Sunnyvale-based developer of wireless and location tracking technology, said on Monday it has acquired Massachusetts-based ThingMagic, a developer of radio frequency identification (RFID) technology. Financial terms of the deal were not disclosed. Trimble said the acquisition will allow it to add features to current products and potentially move into new markets. "Similar to the widespread integration of GPS into today's positioning solutions, we believe RFID can transform markets and is a natural complement to our existing technology portfolio," said Jürgen Kliem, the company's vice president of strategy and business development. Founded in 2000, ThingMagic has received funding from The Exxel Group, The Tudor Group, Cisco Systems, Morningside Technology Ventures, Inventec Appliances and Topline Growth Capital.
http://www.trimble.com
http://www.thingmagic.com
http://www.trimble.com/news/release.aspx?id=102510a

Telegent Tops List of Silicon Valley's Fastest-Growing Private Companies

Mountain View, Calif. -- Telegent Systems, a Sunnyvale-based developer of chips that allows for broadcast TV reception in mobile handsets, laptops and netbooks, is the top-ranked company in the Silicon Valley Business Journal's newly released list of the region's 60 fastest-growing private companies. Telegent led the rankings with revenue growth of 38,491% between 2007-2009, followed by TheFind (3,792%) and Deluxe Marketing (889%). The complete list is available at the link below.
http://www.bizjournals.com/sanjose/stories/2010/10/11/daily82.html

U.S. Venture Capital Investments Down in Q3; Still Up 10% for Year

New York -- Venture capitalists invested $5.5 billion in U.S. companies during the third quarter, down 5% from a year ago, according to new figures from Dow Jones VentureSource. Despite the fall-off, investments are still up 10% for the first three quarters of 2010. "The uptick in venture investment through the first three quarters reflects the fact that the fund-raising and liquidity markets are also improving," said Jessica Canning, global research director for Dow Jones VentureSource. "With more cash on hand and with exits freeing up capital slated for their portfolio companies, deal making is picking up." The median deal size for the third quarter was $5 million, on par with the same period last year.
http://www.dowjones.com/privatemarkets.
http://finance.yahoo.com/news/US-Venture-Investment-in-2010-prnews-2581206711.html?x=0&.v=1

Santa Clara-Based PMC-Sierra to Acquire Wintegra for $213 Million

Santa Clara, Calif. -- PMC-Sierra, a Santa Clara-based maker of Internet infrastructure chips, said it will acquire Texas-based Wintegra, a maker of network processors optimized for mobile backhaul equipment, for $213 million in cash. Wintegra's WinPath family of network processors is used in 3G/4G base stations, fiber and microwave cell-site routers, as well as radio network controllers used in mobile networks. Wintegra has 165 employees with the majority of its research and development team located in Israel and Texas. Founders Kobi Ben-Zvi and Robert O'Dell will join PMC-Sierra in unspecified roles. The value of the deal, expected to close by the end of this year, could rise by as much as $60 million, based on Wintegra's future performance over the next year. 
http://www.pmc-sierra.com
http://www.wintegra.com
http://phx.corporate-ir.net/phoenix.zhtml?c=74533&p=irol-newsCorporateArticle&ID=1485934&highlight=

Redwood City-Based Kabam Acquires S.F.-Based WonderHill

Redwood City, Calif. -- Kabam, a Redwood City-based developer of games for social networks best known for its Kingdoms of Camelot title, said on Friday it has acquired San Francisco-based social game developer WonderHill. Financial terms of the deal were not disclosed. WonderHill's titles include strategy social game Dragons of Atlantis, as well as Facebook game Tattoo City and MySpace title GreenSpot. With the acquisition, WonderHill and its approximately 25 developers will become Kabam's San Francisco studio. Kabam CEO Kevin Chou said WonderHill's new emphasis on Flash-based strategy games "makes them a perfect complement to Kabam as we aggressively grow our business." WonderHill founders James Currier and Stan Chudnovsky will remain advisors while the development team of approximately 25 will transition into Kabam employees.
http://www.kabam.com
http://www.businesswire.com/news/home/20101022005266/en/Kabam-Acquires-Social-Game-Developer-WonderHill

San Jose-Based Power Integrations Invests in SemiSouth Laboratories

San Jose, Calif. -- Power Integrations, a San Jose-based developer of high-voltage integrated circuits for power conversion, said on Friday that it has invested in Mississippi-based SemiSouth Laboratories, a manufacturer of high-voltage silicon-carbide (SiC) semiconductor devices. The total commitment of $30 million includes an equity investment, a technology license and other financial aspects. SemiSouth said the funds will help it expand its SiC fabrication facility. "With a mutual focus on energy-efficient high-voltage semiconductor technology, Power Integrations and SemiSouth are natural strategic partners," said Balu Balakrishnan, the president and CEO of Power Integrations. Founded in 2000 as a spin-out from Mississippi State University, SemiSouth makes products including 1200 V and 1700 V transistors, as well as high-voltage diodes and power modules.
http://www.powerint.com
http://semisouth.com/
http://investors.powerint.com/releasedetail.cfm?ReleaseID=521765

Palo Alto-Based HP Closes Acquisition of Cupertino-Based ArcSight

Palo Alto, Calif. -- HP, the Palo Alto-based computer giant, said on Friday it has completed its acquisition of Cupertino-based cybersecurity and compliance software maker ArcSight. The $43.50-a-share deal, first announced last month, values ArcSight at $1.5 billion. ArcSight is now a unit of HP. ArcSight's core platform is designed to help clients safeguard digital assets, comply with corporate and regulatory policies and better control internal and external risks.
http://www.arcsight.com  
http://www.hp.com
http://www.businesswire.com/news/home/20101022005263/en/HP-Completes-Acquisition-ArcSight

FCC Report: Additional Wireless Spectrum a Necessity

Washington, DC -- With a growing number of Americans checking email, surfing the Internet and watching video on their wireless devices, mobile data demand is likely to exceed the capacity of available wireless networks in the near future, the Federal Communications Commission (FCC) said in a new report. By 2014, the FCC expects the nation's spectrum deficit to reach nearly 300 megahertz, making the need to free up additional spectrum a necessity. "The explosive growth in mobile communications is outpacing our ability to keep up," said FCC Chairman Julius Genachowski. "If we don't act to update our spectrum policies for the 21st century, we're going to run into a wall -- a spectrum crunch -- that will stifle American innovation and economic growth." The National Broadband Plan recommends that the FCC make available 500 MHz of new spectrum for wireless broadband within 10 years, including 300 MHz within five years.
http://www.fcc.gov/Daily_Releases/Daily_Business/2010/db1021/DOC-302330A1.pdf (PDF)

NASA Launches Partnership with Social Networking Service Foursquare

Washington, DC -- NASA astronaut and International Space Station commander Doug Wheelock became the first person to "check in" from space Friday using the mobile social networking application Foursquare, which lets users find nearby friends and places. The move officially launched a partnership between NASA and New York-based Foursquare to connect its users to the space agency. As part of the relationship, a customized section of Foursquare website's will feature tips and information about the nation's space program. "Partnering with Foursquare allows NASA to connect directly with the people who visit our locations and share with them the interesting things that happen at each place," said Bob Jacobs, deputy associate administrator for communications at NASA Headquarters. When Wheelock checked in to the space station venue, he received the message, "You are now 220 miles above Earth traveling at 17,500 mph and unlocked the NASA Explorer Badge! Show this badge and get a free scoop of astronaut ice cream."
http://www.foursquare.com/NASA
http://www.nasa.gov/home/hqnews/2010/oct/HQ_10-273_Foursquare.html

Palo Alto-Based HP Completes $1.5B Deal for Cupertino's ArcSight

Palo Alto, Calif. -- HP, the Palo Alto-based computer giant, said on Thursday it has completed its $1.5 billion cash tender offer for Cupertino-based cybersecurity and compliance software maker ArcSight. Under the agreement, first announced in September, HP paid $43.50 a share, acquiring 92.1% of the company's stock by the expiration of the offer Wednesday night. HP said it will now complete the acquisition through a merger in the next several days. ArcSight's core platform is designed to help clients safeguard digital assets, comply with corporate and regulatory policies and better control internal and external risks.
http://www.arcsight.com  
http://www.hp.com
http://www.businesswire.com/news/home/20101021005708/en/HP-Completes-Tender-Offer-ArcSight-Expects-Complete

Kleiner Perkins Launches $250M "sFund" for Social Media

Menlo Park, Calif. -- Kleiner Perkins Caufield & Byers, the Menlo Park-based venture capital firm, on Thursday announced the launch of a new $250 million fund that will back entrepreneurs developing social apps and services. Also backing the "sFund" are Amazon.com, Facebook, Zynga, Comcast, Liberty Media and Allen & Co. "We're at the beginning of a new era for social Internet innovators who are re-imagining and re-inventing a web of people and places, looking beyond documents and websites," said KPCB partner John Doerr. "There’s never been a better time than now to start a new social venture." KPCB partner Bing Gordon, the former chief creative officer and longtime executive at Electronic Arts, will lead the fund. The sFund follows on the firm's successful "iFund," which focused on iPhone application development and backed firms such as the recently acquired Ngmoco. Recent investments in the social space by KPCB include Cafebots, Flipboard, Jive and Lockerz.
http://www.kpcb.com/sfund  
http://www.kpcb.com/news/article.php?id=2010_10_21_sfund_launch 

Burlingame-Based Aurora Feint Lands $8 Million in Funding

Burlingame, Calif. -- Aurora Feint, the Burlingame-based developer of the OpenFeint mobile social gaming network, said on Thursday that it has raised $8 million in a new round of funding from Intel Capital and Chinese game publisher The9. The company will use the funds to further expand into multi-platform mobile gaming for smartphones and tablets. "Over the past few years, interest in mobile gaming has exploded, creating a huge market opportunity to deliver these games to the one billion plus mobile device users worldwide," said Mike Buckley, the managing director of Intel Capital. "OpenFeint’s momentum and established user base have positioned OpenFeint as the mobile social gaming platform preferred by developers and publishers." The company said it has added 3,400 games and over 45 million mobile gamers to OpenFeint in just over a year.
http://www.openfeint.com 
http://www.aurorafeint.com/press/18-Intel-Capital-Invests-in-OpenFeint

Mountain View-Based ShopSocially Raises $1.1 Million in First Round

Mountain View, Calif. -- ShopSocially, a Mountain View-based site that allows friends to exchange shopping recommendations, said on Thursday it has raised $1.1 million in its first round of funding, led by Valhalla Partners. Angel investors Raman Khanna, Ashish Gupta and Dharmesh Thakker also participated. The site, which launched earlier this year, currently boasts more than 10,000 product recommendations. "While online buying is very easy now, online shopping remains a frustrating experience," said co-founder and CEO Jai Rawat. "ShopSocially allows you to participate in a shopping conversation with your friends making it easy, fun and of course, trusted." Kiran Hebbar, a partner at Valhalla, said the company operates "at the confluence of e-commerce and social marketing, both being multi-billion dollar markets."
http://shopsocial.ly
http://www.valhallapartners.com
http://www.businesswire.com/news/home/20101021005540/en/ShopSocially-Receives-1.1-Million-Series-Financing-Social

Sunnyvale-Based Kontiki Lands $10.7 Million in Second Round

Sunnyvale, Calif. -- Kontiki, a Sunnyvale-based developer of web video distribution services for businesses, said on Wednesday it has raised $10.7 million in its second round of funding, led by MK Capital. New World Ventures and Cross Creek Capital also participated. The company said it will use the funds to expand its product development, sales and marketing programs. Kontiki offers a peer-to-peer content delivery network that companies can use to deliver live and on-demand video. The company said its web-based technology makes it more practical for organizations to use live video, video on-demand, video conferencing and telepresence, as well as social video networking.
http://www.kontiki.com 
http://www.businesswire.com/news/home/20101020006253/en/Kontiki-Raises-10.7M-Series-Funding

Redwood City-Based EA Acquires "Angry Birds" Publisher Chillingo

Redwood City, Calif. -- Electronic Arts (EA), the Redwood City-based developer and publisher of video games, has acquired U.K.-based publisher Chillingo, which distributes the popular mobile game "Angry Birds," the Los Angeles Times reported. The Times pegged the purchase price at less than $20 million, citing sources. Chillingo publishes games from independent developers. Currently, developer ZeptoLab's "Cut the Rope" and Rovio's "Angry Birds" titles are among the top paid applications at the iTunes Store. "By acquiring Chillingo, EA Mobile is increasing its market leadership on the Apple platform," the company told The Times. "This acquisition will combine Chillingo's expertise in cultivating the ideas of independent developers with EA's global mobile publishing reach."
http://www.ea.com
http://www.chillingo.com 
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/10/ea-buys-iphone-game-publisher-chillingo.html

Palo Alto-Based Affymax Ranks No.2 in New Deloitte Tech Fast 500

Palo Alto, Calif. -- A year after cracking the top three, Palo Alto-based biopharmaceutical firm Affymax now ranks No. 2 in the newest Deloitte Technology Fast 500. The annual list ranks the 500 fastest growing technology, media, telecommunications, life sciences and clean tech companies in the nation, based on percentage revenue growth over five years (2005-2009). Maryland-based Hughes Communications led the rankings with five-year revenue growth of 164,079%, followed by Affymax (155,169%) and Massachusetts-based Insulet (131,964%). Other Bay Area companies cracking the top 50 include Emeryville-based Onyx Pharmaceuticals (No. 9), Los Gatos-based Procera Networks (No. 19), Sunnyvale-based Infinera (No. 20), Sunnyvale-based Meru Networks (No. 25), Emeryville-based LeadQual (No. 27), Redwood City-based Genomic Health (No. 47) and Mountain View-based Retail Solutions (No. 48). The complete list is available at the link below.
http://www.deloitte.com/us/fast500/

Linden Lab Founder Exits as Interim CEO After Four Months

San Francisco -- Philip Linden, the founder and interim CEO of "Second Life" virtual world creator Linden Lab, announced that he will step down as CEO after four months in the position. Bob Komin, the company's COO and CFO, will take over on an interim basis while the San Francisco-based company continues its search for a permanent CEO. "It's been an intense few months of transition, and we all feel like we are in a better place now, with a clearer sense of direction and more focus, and are ready to bring someone new into the mix as a leader," Linden wrote on the Second Life blog. "I'll be leaving day-to-day management of the company and continuing in my role on the board, including helping in the search to find a great CEO. I will also be continuing my work with my new company, LoveMachine."
http://lindenlab.com/
http://blogs.secondlife.com/community/features/blog/2010/10/19/changing-my-role-and-searching-for-a-new-ceo

Facebook, Zynga Face Lawsuits Over User ID Privacy Breach

San Francisco -- Palo Alto-based Facebook and San Francisco-based social games giant Zynga are now facing lawsuits alleging they violated federal privacy laws by sharing personally identifiable Facebook user IDs with advertisers and tracking firms, The Wall Street Journal reported. Zynga, the maker of Facebook games including "FarmVille," and one of the firms cited in a Wall Street Journal article that uncovered the privacy issue, was sued in federal court in U.S. District Court in the Northern District of California on Monday. That suit claims that Zynga violated federal and California state privacy and computer-related laws. A separate complaint was filed directly against Facebook in Rhode Island; and was added to a privacy-related lawsuit filed against the company in June. Both Facebook and Zynga said the suits are without merit.
http://blogs.wsj.com/digits/2010/10/19/facebook-and-zynga-face-lawsuits-over-privacy-breach/

Starbucks, Yahoo Team to Launch Starbucks Digital Network

Seattle -- Starbucks on Wednesday announced the launch of its Starbucks Digital Network, a joint venture with Sunnyvale-based Yahoo that will offer news, entertainment and lifestyle content for free exclusively in Starbucks stores. Customers will be able to access the content through free Wi-Fi on laptops, tablets and smartphones. The service will feature promotional offers, such as free music tracks, a preview excerpt from a novel, or a movie clip with a charitable tie-in. Content providers include Yahoo, Apple's iTunes Store, Nick Jr., SnagFilms, The New York Times, WSJ.com, USA Today, Bookish Reading Club, Foursquare, GOOD, LinkedIn, New Word City and The Weather Channel. Social network LinkedIn also will contribute a business-centered blog. The network launches in all 6,800 company-operated U.S. stores today.
http://www.starbucks.com/
http://www.businesswire.com/news/home/20101020005703/en/CORRECTING-REPLACING-Designed-Connect-Inform-Entertain-Starbucks

San Francisco-Based eCert Lands Investment from Warburg Pincus

San Francisco -- eCert, the San Francisco-based developer of an email authentication service designed to block malicious traffic, said on Tuesday that private equity firm Warburg Pincus will invest up to $8 million in the company. The company will use the funding to accelerate expansion of the Trusted Email Registry for Financial Services, which is designed to protect the email traffic of U.S financial institutions. eCert's Email Domain eCertification service monitors email traffic, prevents fraudulent online communications from reaching a user's inbox and enables trusted delivery. Since launching this year, eCert now protects more than 100 million consumers and $50 billion in brand value for ISPs, financial institutions and major brands, including Yahoo and Google.
http://www.ecertsystems.com
http://www.warburgpincus.com
http://www.ecertsystems.com/october_19_2010_press_release.html 

WSJ: Yahoo to Debut Facebook Connect-Style Offering for Publishers

Sunnyvale, Calif. -- Sunnyvale-based Yahoo is preparing to launch a new service, similar to Facebook Connect, that will allow web publishers to integrate Yahoo more closely with their sites, The Wall Street Journal reported. Citing sources, the paper said the "Y Connect" platform would allow users to login to media sites using their Yahoo accounts, and share activity on media sites with Yahoo contacts. The service advertising. A source told The Journal that Y Connect is expected to be formally announced in the fall, and will be supported by publishers including The Huffington Post. would let the company track users' activities in order to serve them targeted
http://online.wsj.com/article/SB10001424052702304250404575558442735374452.html (subscription required) 

Menlo Park-Based Leader Ventures Invests in PayScale

Menlo Park, Calif. -- Leader Ventures, a Menlo Park-based investment firm offering blended debt and equity financing, said on Tuesday it will provide an undisclosed amount of working capital financing to PayScale, a Seattle-based provider of online compensation data. Founded in 2002, PayScale boasts the world's largest database of individual compensation profiles, making the information available through online tools and benchmarking reports. Users take the company's salary survey to compare their pay anonymously with their peers. "PayScale is a fast growing start-up firm looking for a financing partner to provide flexible support," said Patrick Gordan, managing director at Leader Ventures.
http://www.payscale.com
http://www.leaderventures.com
http://www.prnewswire.com/news-releases/leader-ventures-supports-fast-growing-firm-payscale-105258793.html

WSJ: Many Facebook Apps Sharing User IDs with Outside Companies

Palo Alto, Calif. -- The Wall Street Journal reported on Monday that some of the most popular applications on Facebook -- including each of the social network's top 10 most popular apps -- have been transmitting the identities of users to outside tracking companies, in violation of company policy. Three of the apps, led by Zynga's popular FarmVille game, also reportedly have been sharing information about users' friends, even when they have set their privacy settings to the strictest level possible. "A Facebook user ID may be inadvertently shared by a user's Internet browser or by an application," a company spokesman told The Journal, adding the breach has not led to the disclosure of other private information. The Palo Alto-based company said it plans to introduce new technology to resolve the problem.
http://arstechnica.com/tech-policy/news/2010/10/many-faceook-apps-found-to-be-collecting-selling-user-info.ars
http://online.wsj.com/article/SB10001424052702304772804575558484075236968.html?mod=WSJ_hpp_LEFTTopStories (subscription required)

San Francisco-Based Sharethrough Lands $5 Million in First Round

San Francisco -- Sharethrough, a San Francisco-based developer of social video advertising services, said on Monday that it has raised $5 million in its first round of funding, co-led by North Bridge Venture Partners and Floodgate. Angel investors Ron Conway, Ron Bouganim, Steve Blank and Auren Hoffman also participated. Founded in 2008, Sharethrough provides its social video ad products to brands including Sony, Xbox and LEGO. "The future of advertising is social, and social is all about sharing," said Dan Greenberg, the co-founder and CEO of Sharethrough. "We've shown time and again that shared video views are superior to traditional views because they fuel a much higher level of engagement with the content and the brand."  http://www.sharethrough.com 
http://www.prnewswire.com/news-releases/social-video-advertising-company-sharethrough-secures-5-million-series-a-funding-105161669.html

San Francisco-Based xAD Raises $4 Million in Funding

San Francisco -- xAD, a San Francisco-based provider of local mobile search and advertising services, said it has raised $4 million in a new round of funding from Emergence Capital Partners. The company plans to use the proceeds to expand its technology platform, grow its management tea, and increase its footprint in the local mobile ad sector. xAD's platform identifies who, what and where an end user is, using that information to serve the most relevant ad. The company said its local mobile ad network is already profitable, and growing at a rate of 20% each month.
http://www.xad.com
http://www.prweb.com/releases/2010/10/prweb4643224.htm 

San Francisco-Based MarkMonitor Acquires Denmark's DtecNet

San Francisco -- MarkMonitor, a San Francisco-based provider of online corporate brand protection services, said on Monday it has acquired Danish anti-piracy company DtecNet. Financial terms of the deal were not disclosed. MarkMonitor said the acquisition expands its brand protection platform, adding greater breadth in targeting both the distribution points and promotional vehicles for pirated digital content. DtecNet's technology helps pinpoint and monitor illegal download activity on P2P networks, blogs, video streaming sites and Usenet services. Founder and CEO Thomas Sehested will join MarkMonitor as a senior vice president.
http://www.markmonitor.com
http://www.markmonitor.com/pressreleases/2010/pr101018.php

San Ramon-Based DebtMarket Lands Prominent Angel Investors

San Ramon, Calif. -- DebtMarket, the San Ramon-based developer of an online marketplace for buying and selling loans, said on Monday it has raised a new round of funding from several prominent angel investors. In addition to company founder and CEO Scott Walchek, some of the participants included James Robinson III, the founder of RRE Ventures and former chairman and CEO of American Express; Timothy Draper, the founder and managing director of Draper Fisher Jurvetson Ventures; James Jones, the CEO AccountNow and former CEO of GMAC's Residential Capital; and Baidu founder Eric Xu. DebtMarket,which recently moved into expanded headquarters in San Ramon, said it will use the proceeds to fuel its sales and marketing efforts, fill key management roles and expand its online debt trading services. The company also recently named David How, a veteran of EMC, 3Com, Macromedia and C2B Technologies, as its vice president of marketing.
http://www.debtmarket.com/
http://www.debtmarket.com/2010/10/debtmarket-continues-to-build-momentum-completes-high-profile-angel-round/

Emeryville-Based Kabongo Raises First $1.1 Million of Planned Round

Emeryville, Calif. -- Kabongo, an Emeryville-based developer and publisher of online educational games, has raised the first $1.1 million of a planned $4 million round of private equity financing, the company disclosed in a filing with the Securities and Exchange Commission (SEC). Seven investors have so far taken part in the round. Founded in 2008, Kabongo develops learning games for kids, including "Skatekids," which was designed to improve reading and critical thinking skills.
http://www.kabongo.com
http://www.sec.gov/Archives/edgar/data/1429371/000142937110000006/xslFormDX01/primary_doc.xml

Cupertino-Based Apple Reports All-Time Highs for Earnings, Revenue

Cupertino, Calif. -- Buoyed by the near-doubling of its iPhone sales from a year ago, Cupertino-based Apple on Monday reported record revenue and a 70% jump in fiscal fourth-quarter earnings. The company announced net income of $4.3 billion -- up from $2.5 billion in the same quarter of 2009 -- on revenue of $20.3 billion -- up from $12.2 billion. "We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple," said Steve Jobs, Apple's CEO. "iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter." A complete look at Apple's results is available at the link below.
http://www.apple.com/pr/library/2010/10/18results.html

Shares of Seagate Technology Soar on News of Buyout Talks

Scotts Valley, Calif. -- Shares of Seagate Technology spiked more than 19% by midday Friday after the Scotts Valley-based developer of hard disk drives and storage systems revealed it is in preliminary talks with private equity firms about a deal that would take the company private. The New York Times, citing people briefed on the matter, revealed the firms as TPG and Kohlberg Kravis Roberts (KKR). In a statement, Seagate said it has received a "preliminary indication of interest regarding a going private transaction," and is "in discussions" with the potential suitors. The company has retained Morgan Stanley and Perella Weinberg Partners to provide financial advice and Wilson Sonsini Goodrich & Rosati and Arthur Cox as legal counsel. The Times reported that TPG and Silver Lake Partners engaged in buyout talked with Seagate several weeks ago, but no agreement could be reached.
http://www.seagate.com/
http://finance.yahoo.com/news/Seagate-Technology-Announces-bw-2688729778.html?x=0&.v=1
http://dealbook.blogs.nytimes.com/2010/10/14/seagate-receives-buyout-offer/?partner=yahoofinance

BroadSoft to Acquire Campbell-Based Casabi for $1.95 Million

Campbell, Calif. -- BroadSoft, a Maryland-based developer of software that allows service providers to deliver voice and multimedia services over the Internet, said it will pay $1.95 million to acquire Campbell-based Casabi, a provider of cloud-based personalized content and messaging applications. BroadSoft said it expects the deal to generate $3-$4 million in revenue over the next year. Greg Pounds, the co-founder and CTO of Casabi, will join BroadSoft to manage its expanded cloud operations. Casabi's hosted application allows service providers to offer new services that allow family members to send group text messages, access voicemail, make real-time updates to a family calendar and share a network address book. "Broad adoption of individual applications, such as SMS, demonstrates that consumers value features that improve a family's ability to communicate with one another across multiple devices," said Michael Tessler, the CEO of BroadSoft. The news comes four months after BroadSoft raised $67.5 million in its initial public offering (IPO).
http://www.broadsoft.com/ 
http://www.casabi.com/ 
http://www.broadsoft.com/news/2010/broadsoft-signs-definitive-agreement-to-acquire-casabi/

California Falls One Spot in "Best States for Business" Rankings

California fell one spot to No. 39 in Forbes' newly released list of the Best States for Business and Careers. Utah, with the second-fastest growing economy of any state,  topped the list, jumping from No. 3 a year ago, with four-time list-leader Virginia falling to No. 2. North Carolina, Colorado and Washington rounded out the top five. While California ranked No. 11 overall in terms of growth prospects, it was hurt by low rankings in business costs (No. 44) and regulatory environment (43).
http://www.forbes.com/2010/10/13/best-states-for-business-business-beltway-best-states.html?boxes=Homepagetoprated
http://www.forbes.com/2010/10/13/best-states-for-business-business-beltway-best-states-table.html?partner=contextstory

WSJ: AOL, Private Equity Firms Mulling Bid for Yahoo

Sunnyvale, Calif. -- Following weeks of rumors about a possible combination, the Wall Street Journal reported that AOL and several private equity firms, including Silver Lake Partners and Blackstone Group, are considering making an offer to buy Sunnyvale-based Yahoo. Citing people familiar with the matter, the paper reported that talks so far have involved AOL executives, private equity firms and financial advisors, though not Yahoo, as of yet. Since Yahoo's market capitalization of $20.6 billion is roughly eight times larger than AOL's, one aspect of any such deal likely would involve Yahoo first selling off its 40% stake in China's Alibaba, reportedly worth around $10 billion. One person familiar with the situation told the Journal that AOL CEO Tim Armstrong also has talked privately about Yahoo acquiring AOL. A deal likely would create an entity that could compete more evenly with Google in the market for online ads. The news sent shares of Yahoo up nearly 5% in Thursday's trading.
http://blogs.barrons.com/techtraderdaily/2010/10/13/aol-private-equity-firms-mulling-bid-for-yahoo-wsj-says/?mod=yahoobarrons
http://sg.finance.yahoo.com/news/Private-equity-courts-News-rsg-3719060477.html?x=0&.v=2
http://online.wsj.com/article/SB10001424052748703673604575550661101743360.html?mod=WSJ_hpp_LEFTTopStories (subscription required)

S.F.-Based Involver Lands $8 Million for Social Media Marketing

San Francisco -- Involver, a San Francisco-based developer of social media marketing applications and monitoring tools, said on Thursday it has raised $8 million in its third round of funding, led by Bessemer Venture Partners. Previous backers Cervin Ventures and Western Technology Investment also participated in the round, which the company will use to fuel growth initiatives and expand its social marketing platform. Involver said it now counts more than 100,000 customers for its platform, including Facebook, the White House and Sony/RCA Records. The technology is designed to help customers take better advantage of social media, allowing them to craft marketing campaigns that produce results and protect their brands.
http://www.involver.com 
http://www.marketwire.com/press-release/Involver-Celebrates-100000-Customers-With-8-Million-Series-C-Funding-Round-1334894.htm

Burlingame-Based CarWoo Raises $4.5 Million in First Round

Burlingame, Calif. -- CarWoo, the Burlingame-based developer of a new online service that allows car buyers to negotiate anonymously with multiple dealers, said it has raised $4.5 million in its first round of funding, led by Interwest Partners. Comcast Interactive Capital, Blumberg Capital, Accelerator Ventures, Raymond Tonsing and Dillon McDonald also participated in the round. The company had previously raised $1.5 million in seed funding upon completing the Y Combinator program in late 2009. CarWoo's service, which starts at $19, allows buyers to receive firm offers on new cars anonymously from multiple competing dealers. The company currently has relationships with more than 3,000 dealers.
http://www.carwoo.com
http://www.prnewswire.com/news-releases/carwoo-new-service-to-transform-car-buying-closes-series-a-funding-104863194.html

Verizon, AT&T Stores to Begin Selling Apple iPad

Cupertino, Calif. -- Cupertino-based Apple announced on Thursday that Verizon Wireless will begin selling its iPad in over 2,000 of its U.S. stores beginning Oct. 28. Verizon will reportedly also begin selling Apple's iPhone next year, according to published reports. Verizon will sell the Wi-Fi version of the iPad -- since the 3G chip used by Apple isn't compatible with its network -- bundled with its MiFi portable Wi-Fi hotspot device. Meanwhile, current iPhone carrier partner AT&T said it will also begin carrying both the 3G and Wi-Fi models of the iPad in its 2,200 retail stores on Oct. 28.
http://www.apple.com/pr/library/2010/10/14ipadverizon.html 
http://www.apple.com/pr/library/2010/10/14ipadatt.html