Silicon Valley Wire

San Jose-Based Discera Raises $11 Million in Fourth Round

San Jose, Calif. -- Discera, a San Jose-based developer of MEMS (micro-electromechanical systems) technology for the clock and timing markets, said on Friday that it has raised $11 million in its fourth round of funding. New investor Lurie Investments joined previous backers Scale Venture Partners, Horizon Ventures and Ardesta in the round. "We raised additional funds in this difficult economic climate to expand our product portfolio and accelerate the growth of our MEMS timing business," said Bruce Diamond, the company's president and CEO. Discera was founded in 2001 as an extension MEMS development work at the University of California at Berkeley and the University of Michigan at Ann Arbor, is and currently has 27 MEMS technology patents.
http://www.discera.com 
http://www.businesswire.com/news/home/20100108005203/en/Discera-Closes-%2411M-Series-Financing 

Hayward-Based Solta Medical to Raise $17.2 Million in Private Placement

Hayward, Calif. -- Solta Medical, a Hayward-based developer of technology designed to treat aging skin, said on Friday that it plans to raise $17.2 million through a private placement. Under the deal, the company has obtained commitments to sell nearly 8.3 million of its shares for $2.02 each to ma group of institutional investors led by previous backer Longitude Capital and new investor Great Point Partners. The private placement is expected to close within a week, with the company using the proceeds for general corporate purposes, including working capital.
http://www.solta.com
http://www.prnewswire.com/news-releases/solta-medical-to-raise-172-million-in-private-placement-80987177.html

Report: Broadband Adoption Expected to Slow in 2010

Silver Spring, Md. -- Approximately 4 million U.S. households will become new high-speed Internet customers this year, down 10% from 2009, according to a new forecast by Pike & Fischer. The firm estimates that about 65% of U.S. households will be broadband-connect by year's end. Telephone companies are expected to face a particularly difficult year, as they continue to lose DSL customers, which still account for the bulk of their subscribers. Newer wireless services, however, should see an uptick in adoption, with Clearwire's WiMax leading the way.
http://www.broadbandadvisoryservices.com/
http://www.marketwire.com/press-release/Pike-and-Fischer-1098917.html

Private Equity Fund-Raising Suffers Worst Year Since 2003

New York -- U.S. private equity fund-raising suffered its worst year since 2003, according to new figures from Dow Jones LP Source. In 2009, 331 funds raised $95.8 billion, down 68.1% from the amount raised the prior year. It marked the first time since 2003 that private equity firms raised less than $100 billion, and with the lone exception of secondary funds, every sector experienced sharp slowdowns. Among the few bright spots were a new $8.8 billion fund for Hellman & Friedman, as well as oversubscribed funds for Charles River Ventures and Matrix Partners.
http://fis.dowjones.com/products/lpsource.html

AOL Reportedly in Talks to Buy Technology Blog Mashable

San Francisco -- Looking for ways to expand its audience, newly independent AOL is in talks to acquire popular social media blog Mashable, Valleywag reported, citing a source within AOL. Founded in 2005 by now 24-year-old Pete Cashmore, San Francisco-based Mashable focuses its coverage on web 2.0 and social networking-related stories. The site, which claims more than 7 million monthly page views, overtook TechCrunch as the world's most popular technology blog in June 2009, according to figures from Compete and Quantcast. AOL, which recently spun-off from parent company Time Warner, is in the midst of recreating itself as a content publisher, and already counts around 80 blogs in its stable.
http://www.mashable.com
http://valleywag.gawker.com/5441769/aol-lusts-for-the-brad-pitt-of-the-blogosphere-and-his-company

Mountain View-Based Google Increases Bid for On2 Technologies

Mountain View, Calif. -- Hoping to appease disgruntled shareholders of New York-based video compression technology firm On2 Technologies, Mountain View-based Google on Thursday increased its offer for the firm by roughly 20%. The news comes more than four months after investors of On2 filed to block the acquisition, claiming that the company was being undervalued. The new deal adds about $26.5 million in cash to the otherwise all-stock offer, increasing its total value to $134 million. Google said that it raised the price because "since the acquisition was first announced in August 2009, the market value of Google's Class A common stock has increased significantly while the value of the acquisition has remained fixed for On2's stockholders."
http://www.on2.com 
http://www.google.com
http://www.businesswire.com/news/home/20100107005821/en/Google-On2-Agree-Amend-Merger-Agreement

SeaChange International to Acquire Fremont-Based VividLogic

Fremont, Calif. -- SeaChange International, a Massachusetts-based maker of software and hardware for video-on-demand (VOD) systems, said on Thursday that it will acquire VividLogic, a Fremont-based provider of software and services to cable television providers, set-top box manufacturers and consumer electronics suppliers. Under the agreement, SeaChange will pay $12 million in cash upon closing, as well as another $1 million in cash to shareholders of VividLogic on each of the first three anniversaries of the deal. SeaChange said that the acquisition of VividLogic's platforms will enable it to capitalize on the market shift towards IP-delivery into and within the home.
http://www.vividlogic.com
http://www.schange.com/News/SeaChange-Acquires-VividLogic.aspx

San Mateo-Based Jelli Lands $2 Million for Listener-Programmed Radio

San Mateo, Calif. -- Jelli, the San Mateo-based developer of an interactive terrestrial radio service, has raised $2 million in new funding from angel investors, VentureBeat reported. Backers include Josh Kopelman, Zappos COO Alfred Lin, TriplePoint Capital and Peter Sperling. Jelli offers a listener-programmed format for traditional radio stations, where users can collaborate to create playlists and vote in real-time to take a song off of the air. The company is currently broadcasting a program with Live 105 in San Francisco, and plans to offer a nationally syndicated program in the first quarter of 2010.
http://www.jelli.net
http://digital.venturebeat.com/2010/01/06/jelli-angel-2-million/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Venturebeat+%28VentureBeat%29&utm_content=Gmail

San Francisco-Based DNA Games Raises $2 Million

San Francisco -- DNA Games, a San Francisco-based developer of social games that has been operating in stealth mode, has raised $2 million in new funding, according to a filing with the Securities and Exchange Commission (SEC). The company was founded in 2009 by a team of former executives from Bazaar Advertising led by CEO Jonathan Lee, who also co-founded Bazaar. DNA Games has yet to launch a formal web site for the company.
http://www.sec.gov/Archives/edgar/data/1477539/000147753910000001/xslFormDX01/primary_doc.xml

Report: Online Holiday Spending Rose 4% in 2009

Reston, Va. -- Americans spent $29.1 billion online this past holiday season, a 4% increase from the prior year, according to new figures from comScore. "The 2009 online holiday shopping season was a positive one as its growth rate slightly surpassed our forecast and returned to solidly positive rates after nearly a full year of marginally negative growth," said Gian Fulgoni, comScore's chairman. Fulgoni credited effective retailer promotions, guaranteed shipping offers and an East Coast blizzard that forced many holiday shoppers to buy online. The heaviest online spending day of the year -- and of all time -- occurred on Tuesday, Dec. 15 ($913 billion). It was one of nine individual spending days to surpass $800 million during the holiday season. Cyber Monday (Monday, Nov. 30), propelled by aggressive retailer promotions, ranked as the second heaviest spending day at $887 million.
http://www.comscore.com/Press_Events/Press_Releases/2010/1/comScore_Reports_29.1_Billion_in_U.S._Retail_E-Commerce_Spending_for_Full_November-December_Holiday_Season_Up_4_Percent_vs._Year_Ago

Emeryville-Based Lithium Technologies Raises $18 Million

Emeryville, Calif. -- Lithium Technologies, an Emeryville-based developer of software that lets businesses create their own social networks and online communities, said on Wednesday that it has raised $18 million in its third round of funding. New investors DAG Ventures and Tenaya Capital joined previous backers Benchmark Capital, Emergence Capital and Shasta Ventures. The company also raised $12 million in its second round, which closed in June 2008. This past June, Lithium acquired San Francisco-based Keibi Technologies, developer of a platform that allows online communities to monitor content for appropriateness. The company's clients include Best Buy, Sony, AT&T, Research In Motion Limited (RIM), Univision and PayPal.
http://www.lithium.com
http://www.businesswire.com/news/home/20100106006176/en/Lithium-Technologies-Raises-%2418-Million-Series-Financing

San Mateo-Based Aggregate Knowledge Lands $9M in Third Round

San Mateo, Calif. -- Aggregate Knowledge, a San Mateo-based developer of technology designed to help advertisers personalize online campaigns, said on Wednesday that it has landed $9 million in its third round of funding, led by OVP Venture Partners. Kleiner Perkins Caufield and Byers, DAG Ventures and several angel investors also participated. The company plans to use the proceeds to build its new platform and expand its staff. Aggregate Knowledge said that it recently hired David Jakubowski as its chief revenue officer and general manager.
http://www.aggregateknowledge.com
http://www.aggregateknowledge.com/releases/2010/pr_100106_funding.html

New Enterprise Associates Closes $2.5 Billion Tech Fund

Menlo Park, Calif. -- New Enterprise Associates (NEA), the Maryland-based venture capital firm with West Coast offices in Menlo Park, said on Wednesday that it officially has closed its new $2.5 billion fund, which it began investing last May. The firm's 13th fund, the largest raised in the U.S. since 2007, brings NEA's total committed capital to more than $11 billion. Peter Barris, NEA's managing general partner, called the fund a "resounding vote of confidence" during an "incredibly challenging time for the venture capital industry." NEA, which focuses on IT, healthcare and energy technology, closed its most recent fund in 2006, also at $2.5 billion.
http://www.nea.com 
http://www.nea.com/NewsAndEvents/PressReleases/NewsFromNEA2010/ 

Mountain View-Based Google Launches Nexus One "Superphone"

Mountain View, Calif. -- Taking direct aim at the iPhone, Mountain View-based Google on Tuesday officially unveiled its first internally designed smartphone, known as the Nexus One. Manufactured by HTC, the Android-powered device -- which the company is calling its first in a new class of "superphones," features a 3.7-inch display, dynamic noise suppression and a superfast chipset. Built-in technology includes such perks as a voice-enabled keyboard, allowing users to speak into any text field, live wallpapers and a 3D photo gallery. Available through Google's newly launched online store, the Nexus One sells for $529 without service, or $179 with a contract through T-Mobile. Thbe company said that it expects to add Verizon Wireless as another carrier in the near future.
http://www.google.com/phone
http://googleblog.blogspot.com/2010/01/our-new-approach-to-buying-mobile-phone.html

Scheduling of Apple Media Event Sparks Tablet Speculation

San Francisco -- Adding fuel to the rumor mill surrounding the expected introduction of a tablet PC from Apple, the Cupertino-based company has scheduled a media event for Wednesday, Jan. 27 in San Francisco, sources told All Things Digital.  Neither the blog, nor other media outlets such as the Financial Times, which also published similar reports, detailed exactly what the company plans to announce. Previous speculation had been that Apple would not launch its touch-screen tablet device -- similar to a large iPod touch -- until March. 
http://digitaldaily.allthingsd.com/20100104/major-apple-product-announcement/?mod=ATD_rss
http://blogs.ft.com/techblog/2009/12/exclusive-apple-to-host-event-in-january/
http://www.nytimes.com/2010/01/04/arts/04iht-design4.html

San Francisco-Based IGN Sells Rotten Tomatoes to Flixster

San Francisco -- News Corp.'s San Francisco-based IGN Entertainment unit said that it has sold its movie review aggregation site, Rotten Tomatoes, to San Francisco-based rival Flixster. Financial terms of the deal were not disclosed, though IGN said that it will receive a minority stake in Flixster. Founded in 2006, Flixster counts more than 20 million monthly users, and boasts the most popular movie-related application for Apple's iPhone. The companies recently had partnered to syndicate Rotten Tomatoes' reviews on Flixster's web site and mobile applications. The combined company will command an audience of around 30 million monthly visitors, and offer a database of half a million reviews from critics alongside 2.3 billion user-generated ratings and reviews.
http://www.rottentomatoes.com
http://www.flixster.com
http://mediamemo.allthingsd.com/20100104/first-ma-of-2010-flixster-rotten-tomatoes/?mod=ATD_rss

S.F.-Based Quantcast Lands $27.5 Million in Third Round

San Francisco -- Quantcast, a San Francisco-based provider of services designed to help advertisers more effectively connect with Internet audiences, said on Monday that it has raised $27.5 million in its third round of funding, co-led by Cisco and Polaris Venture Partners. Previous backers Founders Fund and Revolution Ventures also participated in the round. Founded in 2006, Quantcast provides services designed to measure and organize Internet audiences by monitoring more than 10 million web destinations. The company said that it will use the new funds to support its Quantcast Media Program, which it says offers "a standardized means to measure, organize, buy and sell real-time audiences, all based on the distinctive characteristics of a marketer's proprietary customer data."
http://www.quantcast.com
http://www.prnewswire.com/news-releases/cisco-leads-series-c-investment-in-quantcast-80571402.html

S.F.-Based Seesmic Buys Social Network Update Aggregator Ping.fm

San Francisco -- Seesmic, the San Francisco-based provider of a social networking application that integrates Twitter and Facebook feeds, announced on Monday that it has acquired Ping.fm, a provider of social network aggregation that lets users update up to 50 social networks at once. Financial terms of the deal were not disclosed. Seesmic said that Ping.fm angel investors Joi Ito, Reid Hoffman and Mohamed Nanabhay will become shareholders in the combined company. Ping.fm's co-founders, Adam Duffy and Sean McCullough, will join Seesmic's executive team and work to integrate Ping's features into the Seesmic platform. Ping.fm currently counts over 500,000 active users, who post more than 200,000 updates daily on the service.
http://www.seesmic.com
http://ping.fm
http://blog.seesmic.com/2010/01/weve-acquired-pingfm-get-ready-to-update-50-social-networks-from-seesmic.html

Alameda-Based UTStarcom to Pay $3M in Penalties to DOJ, SEC

Alameda, Calif. -- The Department of Justice said that Alameda-based telecom equipment maker UTStarcom has agreed to pay it $1.5 million to settle claims that it violated an act designed to prevent companies from engaging in corrupt foreign practices. Separately, the company also agreed to pay $1.5 million to the Securities and Exchange Commission (SEC). The DOJ said that the company provided travel and "other things of value" to employees of state-owned telecommunications firms in the People's Republic of China. The employees were visiting U.S. tourist destinations, including Hawaii, Las Vegas and New York City. The Justice Department said that it won't pursue legal actions against the company, which has acknowledged its responsibility for the actions.
http://www.utstar.com/
http://www.justice.gov/opa/pr/2009/December/09-crm-1390.html

Venture-Backed Liquidity Stages Comeback in Fourth Quarter

New York -- Following three quarters of sagging liquidity levels, U.S. venture-backed companies staged a comeback in the private markets during the fourth quarter, according to new figures from Dow Jones VentureSource. During the quarter, 86 companies were acquired for $7.3 billion, while three others raised $220 million through initial public offerings (IPOs). All told, 44% of the year's total liquidity was generated in the quarter. "The fourth quarter has set the stage for an active year in M&As in 2010," said Jessica Canning, the director of global research for Dow Jones VentureSource. "As the economy improves, acquirers are gaining confidence in their own financial situation and returning to strategic acquisitions. At the same time, the steady trickle of public offerings is teasing investors who expect the IPO window will re-open in the coming year."
http://www.fis.dowjones.com/VS/4QUSLiquidity.html

JibJab Releases Year in Review Online Spoof

Venice, Calif. -- JibJab, the Venice-based creator of political parity cartoon videos, has released its 2009 year in review parody, a 2-minute online tryst entitled "Never a Year Like '09." Set to the tune of "The Entertainer" by Scott Joplin, the video -- in development since August -- spoofs a year that included everything from the induction of President Barack Obama and Twitter revolt in Iran to the separation of reality stars Jon & Kate and the Balloon Boy saga. The video is available at the link below.
http://sendables.jibjab.com/originals/never_a_year_like_09