VentureBeat

Metabolex takes $8.6M to treat diabetes

Metabolex, maker of treatments for Type 2 diabetes, has raised $8.6 million in a fifth round of funding to fund trials on its newest product. Based in Hayward, Calif., the company is backed by Alta Partners, Bay City Capital, Birchmere Ventures, Charter Ventures, Merlin Biomed, Novo Ventures, Next Chapter Holdings, VantagePoint Venture Partners, Venrock and Versant Ventures.

RedSeal takes $12M for security software

RedSeal Systems, developer of cybersecurity software that estimates and manages risk, has raised $12 million in a third round of venture funding led by OVP Venture Partners. Based in San Mateo, Calif., it is also backed by Venrock, Jafco Ventures, Sutter Hill Ventures and Leapfrog Ventures. It has now raised over $43 million to date.

Teranetics scores $2M for Ethernet chips

Teranetics, maker of chips that allow 10-gigabit Ethernet signals to be transmitted over copper wire, has brought in $2 million of a targeted $12.3 million round of equity, debt, rights and securities, according to a filing with the SEC. The San Jose, Calif. company was previously backed by Columbia Capital, GGV Capital, Global Catalyst Partners, LSI Logic, U.S. Venture Partners and Venrock.

RedSeal closes in on $12M for to manage security risks

RedSeal, a maker of software that keeps track of security risks for businesses, is just $200,000 shy of a $12 million round of equity, according to a filing with the SEC. The San Mateo, Calif. company is backed by Jafco Ventures, Leapfrog Ventures, Sutter Hill Ventures and Venrock. It last brought in $17.1 million in a second round of venture funding in 2007.

Satiety fills up on $25.3M for obesity treatments

Satiety, maker of a minimally-invasive medical device that reduces obesity, has raised $25.3 million of an anticipated $33 million round of equity and rights, according to a filing with the SEC. The Palo Alto, Calif. company was previously backed by HLM Venture Partners, Morgenthaler Ventures, Pinnacle Ventures, Skyline Ventures, Thomas Fogarty, Three Arch Partners and Venrock. It has raised four rounds of funding to date, not including a $7.5 million bridge loan from its investors… Continue Reading

Durect holds follow-on private sale to raise $10M

Pharmaceutical company Durect has struck a deal with Venrock to sell 4.4 million shares of common stock at $2.25 each (a 9 percent discount) to raise $10 million more. Based in Cupertino, Calif., the company, recently valued at $215 million, says it will use the funds for general working capital and late-stage drug development. It is working on treatments for chronic and post-operative pain.

Venrock closed $194 million for late-stage and public investments in health care… Continue Reading

Sapphire Energy launches algae-powered hybrid

Sapphire Energy, maker of an algae-based replacement for gasoline and jet fuel, unveiled its plug-in hybrid electric vehicle today in front of San Francisco’s city hall — combining several promising technologies aimed at slashing carbon emissions.

The car, aptly dubbed the “Algaeus” — built into the shell of a Toyota Prius — will take off today on a 10-day nationwide tour, stopping first in Sacramento, where governor Arnold Schwarzenegger is planned to pour a vial of… Continue Reading

Quantenna adds new funds for wireless video chips

Quantenna, maker of chipsets used to improve video functionality in televisions and laptop, has added an unspecified amount to its third round of funding, which previously amounted to $13.8 million.

Based in Fremont, Calif., the company has now raised $44 million to date ($2 million more than it reported having in April), according to VentureWire. Its backers include Grazia Equity, Sequoia Capital, Sigma Partners, Southern Cross Venture Partners and Venrock.

Email assistant Cc:Betty raises $1.5M

Cc:Betty, a startup that helps users organize their email, announced today that it has raised $1.5 million in seed funding. The round was led by Venrock, the firm where co-founder and chief executive Michael Cerda incubated the company as an entrepreneur in residence.

The Palo Alto, Calif. company creates a “mailspace” where users can get the information that they want from their emails — they can see all the messages in a single conversation, as well… Continue Reading

Boston Power puts Massachusetts on the battery map with $9M

Boston Power, maker of advanced batteries for electric vehicles, has struck a deal with the Massachusetts state government for $9 million in matching funds to make its new manufacturing facility in Auburn, Mass. a reality. The funds will help get the ball rolling as the company waits for upwards of $100 million in stimulus grants it has applied for through the Department of Energy.

While Boston Power got its start making batteries for smaller applications, like… Continue Reading

Valero inherits hefty stake in ethanol producer Qteros

Oil and gas company Valero Energy has acquired an undisclosed stake in Qteros, maker of microbial ethanol, along with other assets divvied up from bankrupt ethanol producer VeraSun Energy. It also assumed ownership of seven of the company’s plants — 780 megawatts in all — and rights to build another for $477 million.

Formerly called SunEthanol, Qteros specializes in converting biomass into cellulosic ethanol. It has received $2 million from the government for a pilot plant… Continue Reading

Satiety secures $7.5M bridge for tummy tuck shortcut

Satiety, maker of a minimally-invasive device that shrinks stomach capacity via the mouth, has landed a $7.5 million bridge loan from its existing investors — a group that includes Skyline Ventures, HLM Venture Partners, Pinnacle Ventures, Morgenthaler Ventures, Three Arch Partners, Venrock and medical inventor Thomas Fogarty, reports VentureWire.

Based in Palo Alto, Calif., the company is still developing its lead product, called the TOGA System, which makes users feel sufficiently full after eating very little…. Continue Reading

BlogHer, the “community for women who blog,” raises $7M more

BlogHer , a content network for "women who blog,” has raised $7 million more in a third round of financing, giving it a treasure chest to keep it through the downturn as it seeks to become profitable next year.

The Redwood City, Calif., company has now raised $15.5 million, according to AllThingsD, which reported on the funding . There are several other players gunning for the women’s content and ad market, including established companies like AOL… Continue Reading

Lavante racks up $5M for vendor communication services

Lavante, a company that automates communication between vendors and major companies to prevent transaction errors and losses, has taken in $5 million in second-round funding from Venrock and ATA Ventures. Based in San Jose, Calif., the firm, previously known as AuditSolutions, plans to use the new money for continued product development.

It claims its software can help Fortune 1000 companies recover three times as much cash as they can using manual or other auditing options. The… Continue Reading

Philanthropic fund of funds Legacy closes $276M

Legacy Venture, the Palo Alto, Calif. firm that holds a portfolio of other investment funds and distributes returns to charities, announced that it closed a new $276 million fund, its fifth, despite adverse economic conditions. Basically, Legacy takes money from limited partners who commit their profits to charities of their choice. This allows these partners to amplify philanthropic contributions that they would make regardless.

In the past, Legacy has worked with well-established firms like August Capital,… Continue Reading

Canesta scores its 37th U.S. patent for gesture-control technology

Maybe I’m paranoid, but I can smell a legal battle coming in gesture control for TVs, computers, game consoles and other gadgets.

Maybe it’s because Canesta is soon to announce its 37th patent. Normally, that wouldn’t be a big deal, but innovations in user-interfaces are hot right now. Also, user interfaces for smartphones have already sparked legal disputes between Apple and Palm. Basically, Palm is using multi-touch screens — which Apple says it patented — for… Continue Reading

Public biotech firms Cadence, Affymax draw $128M from bargain-hunting VCs

Much has been written about how the IPO market froze out biotech companies in 2008, but it looks like times are also tough for those who went public before the economy soured. Cadence Pharmaceuticals has seen a dip in stock price from $9 to $7.53 and drug-maker Affymax has dropped from $25 to $14.12 a share since their IPOs in 2006. But VCs hunting for bargains just agreed to infuse the two companies with $86.6… Continue Reading

Compliance software maker Autonomic fails to rebrand, shutters

Autonomic Networks, the very recently reinvented version of Vernier Networks, has finally given up the ghost after failing to raise a new round of capital. The Mountain View, Calif.-based maker of software that monitored compliance with network security protocols had just launched a beta of its lead product in October. At that point, it already had five clients enlisted for the trial and expected to bring on seven more.

But even then it was running on… Continue Reading

China-focused VCs depart posts — Asia capital crunch to blame?

Sequoia Capital China founding partner Zhang Fan’s decision to leave for an advising post at a philanthropic fund, is the latest development in a wave of departures for venture capitalists working in Asian markets. Citing the desire to work on issues he’s passionate about, Fan also gave a nod to China’s flagging economy as a factor potentially contributing to his move.

The news comes only a day after Ian Goh, China partner of Kleiner Perkins Caufield… Continue Reading