Silicon Valley Wire

Shares of Facebook Fall 12% Following Earnings Report

Menlo Park, Calif. -- Shares of Menlo Park-based Facebook fell nearly 12% on Friday after the social networking giant reported lackluster financial results for the second quarter. The company reported a net loss of $157 million on revenue of $1.18 billion. Without one-time expenses related to the company's IPO, however, net income would have been $295 million. Monthly users of the services were 955 million, up 29% from the previous year. Still, the numbers weren't enough to impress investors. Shares closed on Friday at $23.70. The company's initial public offering (IPO) priced at $38.
http://www.facebook.com
http://investor.fb.com/releasedetail.cfm?ReleaseID=695976

Brightcove to Acquire San Francisco-Based Zencoder

San Francisco -- Brightcove, a Boston-based developer of cloud technology for publishing and distributing digital media, said it will acquire Zencoder, the San Francisco-based developer of a cloud-based video and audio encoding service. Financial terms of the deal were not disclosed. Founded in 2007, Zencoder offers an encoding service that is used by more than 1,000 organizations, and also provides Video.js, an open source HTML5 video player used on more than 24,000 websites. Investors in Zencoder include Y Combinator, Ignition Partners, Lowercase Capital, SV Angel, 500 Startups and Founder Collective. The Zencoder offices in San Francisco will become the Brightcove Bay Area Development Center, joining similar centers located in Boston and Seattle.
http://www.brightcove.com
http://zencoder.com/
http://blog.zencoder.com/2012/07/26/brightcove-acquires-zencoder/
http://www.brightcove.com/en/company/press/brightcove-signs-definitive-agreement-acquire-zencoder

Saratoga-Based Roku Raises $45 Million in New Funding

Saratoga, Calif. -- Roku, the Saratoga-based developer of a streaming platform for delivering video, music and casual games to the TV, said on Thursday it has raised $45 million in a new round of funding. New investors News Corp. and British Sky Broadcasting (BSkyB) joined previous backers Menlo Ventures and Globespan Capital Partners in the round, which also included an unnamed investor. Roku said it will use the new capital to bolster advertising, develop new international markets and increase engineering and production to support sales growth of both its hardware and digital media services. In addition to its line of Roku streaming players, the company this fall plans to launch the Roku Streaming Stick -- a wireless, dongle-sized streaming device that integrates with newer TVs and consumer electronics devices. Roku launched the first player to stream Netflix to the TV in 2008, and now streams more than 500 entertainment channels to customers.
http://www.roku.com
http://www.roku.com/about/pressroom

Foster City-Based E2open Prices IPO, Shares Fall 9% in Debut

Foster City, Calif. -- Shares of Foster City-based E2open fell 9% on their first day of trading Thursday after the developer of cloud-based collaboration software raised $70.5 million in its initial public offering (IPO). The company priced its shares at $15, the low end of its expected price range of $15-$17. Shares closed Thursday at $13.60. The company, whose software is designed to help companies more efficiently collaborate with their trading partners, is now trading on the Nasdaq Global Market under the symbol "EOPN."
http://www.e2open.com/
http://www.e2open.com/news/article/e2open-announces-pricing-of-initial-public-offering/

Thomson Reuters to Acquire San Francisco-Based MarkMonitor

San Francisco -- Business media giant Thomson Reuters said on Thursday it will acquire San Francisco-based MarkMonitor, a provider of online corporate brand protection services. Financial terms of the deal were not disclosed. Thomson Reuters said the acquisition will strengthen its portfolio of intellectual property tools. MarkMonitor will become part of the company's Intellectual Property & Science business. The company's more than 400 employees, including CEO Irfan Salim, are expected to join Thomson Reuters. "With the addition of online brand protection solutions like those provided by MarkMonitor, we'll be able to deliver advanced technologies to keep customers one step ahead of brandjackers and reduce the enormous risk posed to brands online," said David Brown, the president of intellectual property solutions at Thomson Reuters.
http://www.markmonitor.com
http://www.thomsonreuters.com
http://thomsonreuters.com/content/press_room/legal/696696

San Jose-Based BlackArrow Names Michael Pohl as Chairman

San Jose, Calif. -- BlackArrow, a San Jose-based developer of advertising technology for new TV platforms, on Thursday named Michael Pohl as its new chairman. Pohl, a member of the company's board since 2011, succeeds Larry Kramer, who recently was appointed president and publisher of USA Today. Kramer will remain a member of the board. Pohl was previously the chairman of BigBand Networks, and has served as the CEO of nCube.
http://www.blackarrow.tv
http://www.blackarrow.tv/archives/michael-pohl-named-chairman-of-blackarrow-board-of-directors

San Francisco-Based GoodData Raises $25 Million in Third Round

San Francisco -- GoodData, the San Francisco-based developer of a cloud-based platform used by businesses to monetize big data, said on Wednesday it has raised $25 million in its third round of funding, led by Tenaya Capital. New investor Next World Capital and previous backers Andreessen Horowitz, General Catalyst Partners, Fidelity Growth Partners and Windcrest Partners also participated in the round, which increased the company's total funding to $53.5 million. GoodData said it will use the new funding to bolster product development, as well as build sales and marketing programs.
http://www.gooddata.com/
http://www.gooddata.com/blog/gooddata-raises-25-million-series-c

San Francisco-Based Meteor Development Group Lands $11.2 Million

San Francisco -- Meteor Development Group, the San Francisco-based company behind the Meteor open-source project for building software applications, said on Wednesday it has raised $11.2 million in its first round of funding, led by Andreessen Horowitz. Matrix Partners and others also participated in the round, which the company will use to support Meteor development and grow the Meteor community. It also plans to sell a complementary set of enterprise-grade operations management tools to large organizations that are using Meteor. Applications written with Meteor run on a user's own computer -- inside their browser or on their mobile device -- and fetch any needed data from cloud services. "We want to create the universal standard for writing this kind of application, and that will only happen through broad industry cooperation," said Meteor co-author Matt DeBergalis.
http://www.meteor.com
http://www.meteor.com/#blog/2012/07/25/meteors-new-112-million-development-budget

Menlo Park's NEA Closes 14th Fund at $2.6 Billion

Menlo Park, Calif. -- New Enterprise Associates (NEA), the Maryland-based venture capital firm with West Coast operations based in Menlo Park, said on Wednesday it has closed its 14th fund at $2.6 billion -- one of the largest venture funds ever raised. The fund -- NEA's third straight of at least $2.5 billion -- increases the firm's total committed capital to more than $13 billion. It last closed a fund in Jan. 2010. NEA said it will continue its strategy of investing in information technology, healthcare and energy technology companies. In IT, its focus includes enterprise software and systems, education, consumer technology and digital media. NEA initially had closed the fund at $2.1 billion in May, when it began to make its initial investments.
http://www.nea.com
http://www.nea.com/ViewDocument.aspx?f=PUFY_NEA13_010610_FINAL.pdf (PDF)

Mountain View-Based Zonare Lands $25 Million Credit Facility

Mountain View, Calif. -- Zonare Medical Systems, a Mountain View-based developer of software-based ultrasound technology, said on Wednesday it has landed a new $25 million credit facility from Virginia-based specialty finance firm Oxford Finance. The company said it will use the proceeds for growth capital, as well as to further develop its technology. Zonare said its Zone Sonography Technology acquires ultrasound data up to 10 times faster than conventional systems, delivering numerous clinical benefits.
http://www.zonare.com
http://www.oxfordfinance.com  
http://www.marketwatch.com/story/oxford-finance-provides-25-million-senior-credit-facility-to-zonare-medical-systems-2012-07-25

Palo Alto-Based VMware to Acquire Nicira in $1.2 Billion Deal

Palo Alto, Calif. -- VMware, the Palo Alto-based virtualization and cloud infrastructure giant, said it will acquire Palo Alto-based Nicira, developer of a network virtualization platform, in a deal worth approximately $1.2 billion. Under the agreement, VMware will pay $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards. The deal is expected to close during the second half of 2012. "The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in software-defined networking," said CEO Paul Maritz. Nicira's platform -- used by clients such as AT&T, eBay, Fidelity and Rackspace -- enables the dynamic creation of isolated virtual networks and services that are completely decoupled and independent from the physical network.
http://www.vmware.com/
http://nicira.com/
http://www.vmware.com/company/news/releases/vmw-nicira-07-23-12.html

Palo Alto-Based Apigee Raises $20 Million in New Funding

Palo Alto, Calif. -- Apigee, a Palo Alto-based developer of API technology designed to help packets of information flow from one app to another, said on Tuesday it has raised $20 million in a new round of funding, led by Focus Ventures. Previous backers Bay Partners, Norwest Venture Partners, SAP Ventures and Third Point Ventures also participated in the round, which the company will use to rapidly scale development, marketing and sales of its API platform, while also expanding into new markets. "As demand for APIs and apps climb, we are using the additional funding to accelerate our time-to-market and expand into new vertical markets with industry-specific API solutions," said CEO Chet Kapoor. Apigee's flagship platform is a cloud-based service designed to help businesses deliver, manage and measure APIs and the applications built on them. Current clients include Walgreens, Netflix, Bechtel and Getty Images.
http://www.apigee.com
http://www.marketwire.com/press-release/apigee-closes-20-million-funding-round-to-seize-increasing-api-market-demand-1683052.htm

Confidence of Silicon Valley Venture Capitalists Falls in Q2

San Francisco -- The confidence of Silicon Valley venture capitalists dropped during the second quarter, according to new report by Mark Cannice, professor of entrepreneurship and innovation at the University of San Francisco School of Management. Based on a survey of 30 Bay Area venture capitalists, the new Silicon Valley Venture Capitalist Confidence Index came in at 3.47 on a scale of five (with five indicating high confidence and one indicating low confidence). The index fell from 3.79 a quarter ago. "Concerns over macro issues such as the fate of Europe, regulatory constraints in the life science arena and disappointment in the Facebook IPO overshadowed a steady confidence in the positive technology trends that are centered in the Valley and faith in entrepreneurs to build innovative business models to leverage these technological trends in relevant market segments," wrote Cannice. The full report is available at the link below.
http://www.scribd.com/doc/100875070?secret_password=1zaz5diyv4u543ypf6h5

Former Yahoo Head Scott Thompson Named CEO of ShopRunner

Menlo Park, Calif. -- Scott Thompson, the Silicon Valley executive who in May was forced to step down as the CEO of Yahoo amid allegations that he misrepresented his academic credentials, on Monday was named the new CEO of ShopRunner, developer of a shopping network composed of retail websites and stores. He succeeds company co-founder Mike Golden, who will continue as president. Thompson, who also earlier served as the president of PayPal, previously worked with Michael Rubin, now the CEO of ShopRunner's majority shareholder, Kynetic. "During his tenure as PayPal's president, Scott joined the ShopRunner board of directors and we got to see firsthand how much value Scott could add to our business," said Golden. "Michael and I both felt he would be the perfect long-term CEO." ShopRunner's network includes more than 60 retailers, such as Toys”R”Us, American Eagle Outfitters, PetSmart, GNC and Sports Authority. ShopRunner is headquartered in Philadelphia, but earlier this year acquired Menlo Park-based ShopSanity. Thompson will be splitting his time between Menlo Park and the East Coast office.
http://www.shoprunner.com/
http://www.businesswire.com/news/home/20120723005366/en/ShopRunner-Appoints-Scott-Thompson-CEO

Palo Alto-Based Sitoa Global Raises $500,000 from Ingenium Capital

Palo Alto,. Calif. -- Sitoa Global, a Palo Alto-based provider of an e-commerce platform and services, said on Monday it has landed a new $500,000 investment from European private equity firm Ingenium Capital. Under the deal, Ingenium also has the option to invest $300,000 more. Sitoa said it will use the funds to continue expanding into the social e-commerce segment. "Given the recent public company offerings in social media and specialized software as a service, we believe that now is an appropriate time to raise expansion capital," said George Yu, the company's president and CEO. Sitoa's platform, known as the "Focused Social Marketplace," enables online retailers to deploy social e-commerce sites.
http://www.sitoaglobal.com
http://www.marketwatch.com/story/sitoa-global-announces-investment-from-private-equity-firm-ingenium-capital-2012-07-23

San Francisco-Based Asana Raises $28 Million in New Funding

San Francisco -- Asana, the San Francisco-based developer of a shared task list web app for teams, said on Monday it has raised $28 million in a new round of funding to fuel the company's next phase of growth. New investors Peter Thiel and Founders Fund joined previous backers Benchmark, Andreessen-Horowitz and Mitch Kapor in the round, which the company will use to expand its roster of designers, engineers and other employees. Nine-month-old Asana's technology is designed to help teams plan, organize and better stay in sync. The company said that, in the past four months alone, the number of tasks tracked by its technology has doubled to 18 million.
http://www.asana.com/ 
http://blog.asana.com/2012/07/asana-peter-thiel-and-founders-fund/