3.1.00 Core Announces a New Fund
Funding Widens Platform for Enterprise to Secure and Manage Smartphones
Washington, DC (November 12, 2008) - Core Capital Partners, a leading venture capital firm that invests in high-growth technology companies, announced today it is participating in a $14.5 million funding round for McLean, Va.-based Trust Digital, a leading enterprise mobility management (EMM) provider. The funding will be used to extend Trust Digital’s platform to include Research in Motion’s BlackBerry devices, the Apple iPhone and Google Android. The funds will also go toward expanding direct sales and channel partner support.
The funding comes at a time when the U.S. workforce is increasingly reliant on mobility. According to analyst research firm IDC, close to 75 percent of the U.S. workforce will be mobile in the next three years. Many industries – in particular education, government and healthcare – will require both mobility and security without a dramatic increase in total cost of ownership. Trust Digital’s EMM software enables CIOs to control costs and protect corporate information.
“In light of the immense popularity of consumer devices like the iPhone, the need for increased mobility management is clear,” said Pascal Luck, managing director at Core Capital Partners. “Trust Digital is answering this unparalleled demand by offering a reliable and efficient way for companies to keep up with smartphone technology while also effectively managing their increasingly mobile workforce.”
“Core Capital recognizes that Trust Digital is in a unique position to help enterprises safely and flexibly leverage the latest smartphone technology for a more productive workforce, “said Nick Magliato, chief executive officer for Trust Digital. “Device choice is a key part of the CIO’s plan to expand the use of mobility beyond email. Our enterprise mobility management platform gives the CIO a standard way to secure and manage any smartphone, while allowing users to use innovative devices such as the iPhone to better meet their job demands.”
Trust Digital’s enterprise mobility management platform helps CIOs control smartphone costs while protecting corporate information. The company’s unique software-overlay architecture simplifies how IT administrators and help desk specialists implement policies, assist users and enforce compliance for mobile applications across the enterprise. This flexibility enables IT to integrate the Trust Digital mobility platform with existing IT infrastructure while also supporting a wide variety of handheld devices including iPhone, Windows Mobile, Palm and Symbian.
About Trust Digital
Trust Digital is the leading provider of enterprise mobility management software for government organizations and Global 2000 companies. IT organizations rely on Trust Digital’s solution to cost-effectively secure, rapidly deploy and centrally manage their smartphones. Trust Digital’s unique software-overlay methodology simplifies how IT administrators and help desk specialists implement policies, assist users and enforce compliance for mobile applications. Recipient of the 2007 SC Magazine Award for Best Mobile Device Security Solution, Trust Digital is the trusted mobility company. For more information, please visit our website, www.trustdigital.com.
Continued Commitment to Help Company Expand its Software Protection and Piracy Intelligence Solutions
Waltham, MA (October 17, 2008) - V.i. Labs, a provider of software protection solutions, received $4 million in additional funding to accelerate its product development efforts and expand platform support for its CodeArmor software protection and intelligence solutions. Existing investors, Core Capital and Ascent Ventures, participated in the expansion round.
“As a result of the current financial crisis impacting business and global markets, we expect increased demand for our anti-piracy solutions as a revenue generation source for software vendors experiencing downward trends in their license revenue,” said Joe Noonan, president and CEO of V.i. Labs. “Our new CodeArmor Intelligence product is being adopted by some of largest ISVs that recognize the new opportunity to acquire customers from unlicensed installs of their products attributed to piracy.”
CodeArmor Intelligence was announced in August 2008 and provides an end-to-end system for detection and reporting of pirated software use and generating actionable business leads to allow organizations to recover revenue. The new funding will enable V.i. Labs to accelerate plans to extend platform support to Linux operating systems, a key platform for high-value software applications including EDA, PLM, and CAD industries.
“V.i. Labs has created a compelling set of solutions for software providers to preserve as well as generate revenue,” said Geoff Oblak, general partner from Ascent Venture Partners. “Our participation in this extension round underscores our commitment to the software protection space as well as the innovation V.i. Labs has consistently demonstrated in addressing global piracy issues faced by companies today.”
About V.i. Laboratories (V.i. Labs)
V.i. Labs provides software protection solutions that prevent the misappropriation and theft of intellectual property resident in software applications. Through V.i. Labs’ patented technology, software vendors, embedded system providers, enterprise organizations and government agencies are able to easily detect, gather intelligence, and protect against the threat of piracy, tampering and theft, independent of where the applications are distributed. V.i. Labs is privately held and is headquartered in Waltham, MA. For more information please visit www.vilabs.com.
Web-Based Storage Company Acquired for $124 Million
Washington, DC (September 11, 2008) - Core Capital Partners, a leading venture capital firm that invests in high-growth technology companies, today announced the sale of SwapDrive Inc., a web-based storage company, to Symantec Corp. Symantec, a global leader in providing security, storage, and systems management for businesses and consumers, acquired the Washington-based company for $124 million.
The SwapDrive sale marks the seventh successful exit from Core Capital’s first fund, formed in 1999. Core Capital led a $2.65 million Series A round in 2000 and was SwapDrive’s sole institutional investor through its first three rounds of financing. In the eight years since the firm’s initial investment, Core Capital provided active assistance to management as it established and grew SwapDrive’s presence in the storage and backup space. The firm provided strategic counsel that was instrumental to the expansion of SwapDrive’s reach, including structuring and financing the acquisitions of Whale Mail and consumer storage company SkyDesk, Inc.
“SwapDrive emerged as a very successful and valuable company during one of the toughest technology downturns in recent history,” said William Dunbar, managing director for Core Capital Partners. “Demand for online storage of PC data arose from the explosive growth in the volume of photos, music, videos and other personal data stored by consumers on PCs. Many companies developed offerings to fill the demand, but few built a successful, sustainable business model as SwapDrive did. We helped the company build an experienced management team and provided the capital and assistance that enabled them to build a profitable, high-growth company.”
Founded in 1998, SwapDrive was the first company to provide web-based operating software for online backup and storage in a model now known as software-as-a-service (SAAS), allowing customers to access their data through an easy-to-use interface. Often referred to as an “insurance policy for data,” the product features Wizard-based installation, secure automatic backups, fast data recovery and Internet service access 24-hours a day, seven days a week.
SwapDrive’s acquisition was finalized on June 6, 2008.
Funds to be used to Address Critical Need for Gigabit Mobile Backhaul that Support Migration to 4G Mobile Network Deployments
Santa Clara, CA (June 25, 2008) - BridgeWave Communications, the leading supplier of gigabit wireless solutions, today announced it has received $10 million in Series 4 funding. This round was co-led by Intel Capital and a new investor, Core Capital, with participation from prior round venture capital firms Cipio Partners, SDL Ventures, and Merifin Capital.
BridgeWave will use the funding to extend the company's position in gigabit wireless enterprise and fixed operator networks into the next generation gigabit mobile backhaul space. This move will help address the data transport challenges facing 4G WiMAX and Long Term Evolution (LTE) deployments.
“As WiMax deployments continue to gain momentum, there needs to be a major push to expand backhaul capacity in order to support high bandwidth requirements, particularly in high-density metro areas,” said Sriram Viswanathan, director, Mobility Sector, Intel Capital. “BridgeWave is well-positioned to address this need as their technology provides full line-rate gigabit speeds and utilizes the wide spectrum available between 60 GHz and 90 GHz.”
“The vast increases in mobile data traffic enabled by 3G and 4G technologies, including WiMAX and LTE, will not be fully realized without a corresponding increase in backhaul transport capacity,” says Tom Wheeler, managing director at Core Capital and former CEO of the CTIA. “BridgeWave’s technology is poised to play an important role in delivering mobile backhaul capacity, when fiber optic base station connectivity is unavailable.”
As a result of the financing, Pascal Luck, managing director at Core Capital will be joining the BridgeWave board of directors.
"As operators look to make 4G WiMAX and LTE networks a reality, they first need to address the roadblocks associated with them—one being the shortage of mobile backhaul to accommodate customer demand for bandwidth-intensive data services," said Andy Fuertes, senior analyst at Visant Strategies. "This being the case, gigabit fixed wireless technologies from companies like BridgeWave are poised to meet the growing need for 4G mobile backhaul and play a crucial role in energizing WiMAX and LTE.”
The strong response for BridgeWave’s gigabit wireless solutions will continue to grow as organizations and carriers look to wireless connectivity as a highly viable alternative to fiber. The total addressable market for high capacity, short range wireless products is growing 60 percent per year, according to an EJL Wireless Research report from September 2007.
“We thank Intel Capital for their investment and welcome Core Capital to the BridgeWave team,” said Amir Makleff, president and CEO of BridgeWave Communications. “This round of funding ensures that BridgeWave will have all the means necessary to address the requirements of first-tier mobile network operators, enabling the transition to next generation mobile deployments worldwide.”
About BridgeWave Communications
Founded in 1999, BridgeWave Communications (www.bridgewave.com) is the leading supplier of outdoor Gigabit wireless connectivity solutions. The company’s exclusive AdaptRate™ and AdaptPath™ technologies combined with its advanced Forward Error Correction capability deliver the highest availability at the longest distances for full-rate gigabit links. BridgeWave’s point-to-point, wireless solutions are widely deployed in mainstream enterprise and service provider network applications and are poised to play a key role in the migration to 4G mobile network backhaul. With the largest installed base of GigE radios worldwide, BridgeWave delivers the highest levels of product quality and reliability.
About Intel Capital
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than US$7.5 billion in approximately 1,000 companies in 45 countries. In that timeframe, 168 portfolio companies have gone public on various exchanges around the world and 212 were acquired or participated in a merger. In 2007, Intel Capital invested about US$639 million in 166 deals with approximately 37 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
New Company Enhances Ability of Systems Integrators to Provide Superior Delivery of Voice, Data and Video over the Internet to Commercial and Government Clients
Washington, D.C. (February 26, 2008) - Core Capital Partners, a venture capital firm that invests in a wide range of innovative technology businesses including communications infrastructure companies focused on IP and VOIP, announces the merger of Jessup, Md.-based Covega and Fremont, Calif.-based Gemfire. Covega, a portfolio company of Core Capital, will become a wholly owned subsidiary and the active component division of Gemfire’s growing Planar Light Circuit (PLC) product family.
“Core Capital Partners is excited to play a role in the merger of fiber optics visionaries Gemfire and Covega,” said Pascal Luck, managing director with Core Capital Partners. “This merger will provide breakthrough opportunities for voice, data and video over the Internet performance and functionality for companies and government agencies that rely on high-speed global communication networks. The new Gemfire’s approach to photonic integration is by-far the best way to feed the growing demand for high-performance optical components.” Mr. Luck, will take a board seat on Gemfire’s Board of Directors.
“The combined knowledge base of Covega and Gemfire will position this new company as the leader in next generation 40G and advanced optical network applications,” said Joe Dixon, CEO of Covega and new president and chief operating officer (COO) of the Gemfire Components Business Unit. “Furthermore, we are thrilled to have the continued leadership, guidance and financial support of Core Capital Partners behind us 100 percent.”
Core Capital was an early investor in Covega and has continued to support and provide leadership to the company through participation in its successive rounds of financing and growth. Since Core Capital initially invested in the company, Covega’s products have been sold into 8 of the 11 leading systems integrators and original equipment manufacturers (OEMs). Even more, the demand for the kinds of gain chips and small form factor modulators for tunable lasers and transponders that Covega produced has grown at record levels.
The new combined company provides high performance and cost effective solutions for large system integrators that need to manage the rapid growth in demand for bandwidth.
Gemfire Corporation (www.gemfirecorp.com) is an integrated photonics company headquartered in Fremont, California with high volume manufacturing in Scotland, and now near Baltimore, Maryland. The Gemfire PhotonIC(TM) planar technology platform enables wafer-scale processing to produce optical components, such as Athermal and standard AWGs, TODCs, VOAs, and VMUXs, with industry leading performance, and the ability to scale production in a similar way as the semiconductor industry. Gemfire has been shipping its Telcordia qualified products to dozens of top tier optical system companies all over the world since 2003.
Covega (www.covega.com) has established world-class proprietary technologies to produce high performance optical devices and is a leading provider of state-of-the-art opto-electronic components and subsystems. Its wide range of products and services are designed to meet the needs of optical networks and the increased bandwidth demand for fiber-to-the-premises applications of its worldwide customer base. With an early focus on the telecom and datacom industries, Covega also serves the defense, medical, industrial, sensing, test & measurement and instrumentation industries.
New Company Formed by Recently Announced Merger of NexTone Communications, Inc. and Reef Point Systems, Inc. Will Use Investment for Continued Growth
Washington, D.C. (December 4, 2007) - Core Capital Partners, a venture capital firm that has invested in a number communications infrastructure companies particularly focused on the IP and VoIP, announced its participation in a $20 million round of funding for Gaithersburg, MD-based NextPoint™ Networks, Inc. NextPoint will be the result of the recently announced merger between NexTone Communications Inc., a software-centric session border controller and session management provider, and Reef Point Systems, Inc., a mobile access universal convergence gateway provider. NextPoint will use the recent investment to support the merger and continue its strong growth. In addition to Core Capital, other investors in this round include the round lead investor, One Equity Partners, the private equity arm of JP Morgan Chase (NYSE: JPM), as well as American Capital Strategies (NASDAQ: ACAS), Jerusalem Venture Partners, Safeguard Scientifics (NYSE: SFE) and Summerhill Venture Partners.
“NextPoint has incredible potential due to its unprecedented ability to support the IP network evolution and migration plans at both the access and peering points of both mobile and fixed-network providers,” said Pascal Luck, a managing director with Core Capital Partners. “NextPoint provides mobile and fixed-network operators around the world the ability to quickly, securely and profitably deliver voice, data and video services over all IP networks. With the strong, experienced leadership of newly appointed CEO Woody Ritchey, NextPoint is well-positioned for accelerated growth in the emerging fixed-mobile convergence marketplace.”
“Core Capital’s continued support of NexTone through its merger with Reef Point demonstrates the promise of our Integrated Border Gateway solution, which creates significant efficiencies for operators and architects of fixed, mobile and converged networks around the globe,” said Woody Ritchey, chief executive officer of NextPoint. “The IBG will support the acceleration of IP convergence and streamline the design of fixed, mobile and converged networks.”
Core Capital was an early investor in NexTone and has continued to support and provide leadership to the company through participation in its successive rounds of financing and growth. When Core Capital initially invested in the company in 2002, NexTone was just beginning to ship its first product to a few customers. Today, the company has a growing global footprint of more than 550 global service providers.
NextPoint simplifies the deployment of fixed and mobile network connectivity, accelerates the delivery of new services to subscribers and offers high levels of security. Its customers include tier-one mobile operators located all over the globe.
NextPoint Networks (www.nextpointnetworks.com) is being formed by the merger of NexTone and Reef Point, to deliver global, fixed-mobile convergence (FMC) border platforms and secure interconnectivity solutions. NextPoint's technology platform, products and solution suites will enable mobile and fixed line operators to deliver secure voice, data and multimedia over a scalable platform, interoperating with both fixed-line and mobile network technologies and operating systems. 550 service providers and enterprises worldwide will use NextPoint’s IntelliConnect system to manage technical complexities, optimize business economics, and remove partnership hurdles. NexTone (www.nextone.com) and Reef Point (www.reefpoint.com) signed definitive agreements December 2, 2007, and the transaction is expected to close in early January, so the companies can enter 2008 as one company.
Washington, D.C. (November 13, 2007) - Core Capital Partners, a venture capital firm that invests in a wide range of innovative businesses including information and network security, and enterprise software companies, announced its participation in a $6.5 million, Series C funding for Denver-based Valen Technologies, the predictive analytics experts for the property and casualty (P&C) insurance industry. The new funding will be used to support the company’s aggressive growth strategy designed to take advantage of ever-increasing market demand for better predictive analytics for insurance companies of all sizes. The funding will also be used for expansions in engineering, professional services and channel development.
“Two of the top ten insurance companies have already signed onto Valen’s innovative technology that allows insurers to better match price and risk for insurance policies,” said Mark Levine, a managing director with Core Capital Partners. “The potential market growth in this industry is tremendous. We have confidence in Valen’s high customer sign-on rate and its ability to continue to win clients that need advanced predictive analytics.”
“We think Core Capital is a perfect match for us because of their vast experience in analytics products like ours,” said Dax Craig, president and CEO of Valen Technologies. “Over the past year, we have seen a robust adoption rate of our predictive analytics tool as the industry begins to experience its enormous benefits.”
During the last quarter, Valen has closed two major channel deals, acquired one of the world’s largest insurers and added numerous small and medium sized companies to its client portfolio.
Valen’s predictive analytics encompasses a four-step process that highlights critical information often overlooked by insurance carriers. The company’s offering provides the insurance industry with a comprehensive solution for scoring, screening and pricing risk more accurately thereby lowering costs for carriers.
About Valen Technologies, Inc.
Valen Technologies is the expert in predictive analytics for the property and casualty insurance industry, offering highly automated predictive analytics solutions to create and deploy predictive models. Valen helps its customers improve decision making by using predictive analytics in the decision process. To learn more about predictive modeling and Valen Technologies, visit www.valentechnologies.com or call 800-280-3304.
Washington, D.C. (November 6, 2007) - Core Capital Partners, a venture capital firm that invests in a wide range of innovative businesses including information and network security, and enterprise software companies, announced its participation in a $8 million, Series B round funding for Boston-based V.i. Laboratories, Inc. (“V.i. Labs”), a provider of software protection solutions for securing high-value and mission critical applications. The recent funding, which also included Ascent Venture Partners of Boston and other existing investors, will help the company recruit engineering staff, and expand sales and marketing efforts.
“Most software offers minimal protection against intellectual property theft, code cracking and reverse-engineering,” explained Pascal Luck, a managing director at Core Capital Partners. “We invested in V.i. Labs because its CodeArmor ™ offers comprehensive protection against security threats of all levels, and safeguards applications running on Microsoft’s Windows and .NET platforms.”
“Core Capital Partners has vast experience in the security industry and will be able to support us as we ramp up operations and continue to improve on our innovative solutions,” said Joe Noonan, CEO and president of V.i. Labs. “We are thankful for the vote of confidence that this next round of financial backing from Core Capital and our investors demonstrates. Their support clearly reinforces our ability to lead the software security industry.”
V.i. Labs is the first company to offer a commercial product that can simplify and automate the process of embedding comprehensive protection capabilities within a wide variety of native Microsoft Windows™ and Microsoft .NET applications. Markets ideally suited for application protection provided by V.I. Labs’ CodeArmor™ include independent software vendors, embedded systems and application providers, Internet gaming, government and any corporation that wishes to protect its intellectual property from the threats of piracy.
V.i. Labs has acquired customers globally in the financial, government and information services sectors.
About V.i. Laboratories
V.i. Labs provides software protection solutions that protect against the misappropriation and theft of intellectual property resident in software applications. Through V.i. Labs’ patent-pending technology, software vendors, embedded system providers, enterprise organizations and government agencies are able to easily secure their software against the threat of piracy, tampering and theft, independent of where the applications are distributed. V.i. Labs is privately held and is headquartered in Waltham, Mass. For more information please visit http://www.vilabs.com.
Washington, D.C. (October 24, 2007) - Core Capital Partners, a venture capital firm that invests in a wide range of technology companies, announced its participation in a $9.5 million, Series C round for Chevy Chase, Maryland-based JackBe, the leading provider of enterprise mashup software. The new funding, which also included Harbert Venture Partners and other existing investors, will help the company expand sales and marketing and continue product development of its Presto enterprise mashup platform.
“Enterprises have spent millions of dollars developing service oriented architectures (SOA), portals, and enterprise applications, and JackBe’s enterprise mashup software can greatly improve the return-on-investment on these critical technologies,” explained Pascal Luck, managing director at Core Capital Partners. “JackBe’s enterprise server products make information access easier from SOAs, portals, and other enterprise applications.”
“Core Capital Partners has an excellent track record of investing in and successfully building innovative companies that develop market changing technologies,” said JackBe CEO, Luis Derechin. “Analysts predict mashup software will transform the Web 2.0 space, and we believe Core Capital’s expertise will help us take advantage of the market potential and reach enterprises that want to increase productivity through enterprise mashups.”
JackBe has already acquired customers globally in the financial, government, and information services sectors. Clients include Citigroup, Tupperware, Sears, NutriSystem, Forbes, and the U.S. Defense Intelligence Agency.
JackBe’s Presto enterprise mashup platform enables end users to experience self-service data access, situational integration, and enterprise-grade mashups to make more effective decisions and independently complete daily tasks. The company is currently offering a trial download of Presto at http://www.jackbe.com.
JackBe leads the Enterprise Web 2.0 revolution with innovative enterprise mashup software that delivers on the promise of business user empowerment. JackBe has created Presto, a family of products for enterprise mashup solutions that combines SOA and Ajax into enterprise mashups and rich Internet applications. Presto can deliver any data from any application to any user while meeting the toughest security and governance requirements. For more information, visit http://www.jackbe.com.
Tom Wheeler Joins Board of Directors
Washington, D.C. (May 29, 2007) - Core Capital Partners, a leading, Washington, D.C.-based, venture capital firm, announced today its investment in Menlo Park, Calif.-based LimeLife Inc., the only mobile consumer software publisher focused exclusively on content for women. The investment of $3.9 million will be used to continue the company’s development of best-in-class mobile software products and technologies.
On May 23, LimeLife and AT&T announced that they had launched "Rachael Ray™ Recipes on the Run" featuring 30-minute recipes from celebrity cook and Emmy-nominated daytime host Rachael Ray. Rachael Ray joins other brand-name media such as Time, Inc.’s In Style magazine as exclusive content sources for LimeLife. The company will shortly announce additional instantly recognizable women-oriented content to its lineup.
"LimeLife combines innovative mobile technology with a unique understanding of the female consumer to create a new model for targeted programming," says Tom Wheeler, managing director at Core Capital Partners. "We believe that targeted mobile content represents an extension of the same concept which made cable television so successful." Wheeler, who is the former President and CEO of the Cellular Telecommunications and Internet Association (CTIA) and the former President of the National Cable Television Association (NCTA), will join the LimeLife Board of Directors.
"We are thrilled to have Core Capital as an investor and to have Tom Wheeler join our Board of Directors," says Kristin McDonnell, CEO, LimeLife. "Their deep media and wireless communications expertise will be an enormous asset to us as LimeLife continues to launch high-profile mobile products to serve the female market."
Core has successfully invested in numerous companies that are building the next generation of infrastructure in the telecommunications industry. LimeLife is the first content company Core has invested in which takes advantage of that infrastructure and is part of Core’s longer term commitment to the growth of consumer mobile content.
LimeLife was named by IDC as one of the Ten Emerging Wireless Players to Watch in 2006 and received the Red Herring 100 North America award in 2007. Over the last two years, LimeLife has forged strong content partnerships with leading consumer brands and distribution relationships with the major U.S. carriers. LimeLife has also built an innovative technology platform to launch networked mobile applications, such as In Style Mobile which was cited in Mobile Insider as “the best magazine execution…on mobile.”
About LimeLife, Inc.
LimeLife Inc., based in Menlo Park, California, is the only publisher of wireless content exclusively focused on the women’s market. The company’s products are forging innovations in the mobile industry based on unique insights about what women seek in mobile entertainment. Products include lifestyle tools, wireless games, fashion wallpapers and original daily text messages. LimeLife distributes its mobile offerings through the company’s relationships with multiple wireless carriers, including AT&T, Sprint, T-Mobile, and Verizon Wireless as well as from the company’s web site at www.LimeLife.com.
Cashless Payment Market Leader To Use Funds for Growth and Expansion
Washington, D.C. (March 13, 2007) - Core Capital Partners, a leading venture capital firm, announced today that it led a Series D financing for Wayne, PA-based FreedomPay, Inc., the world leader in cashless payment and loyalty solutions. FreedomPay will use this round of financing to increase its sales force, accelerate development of new product capabilities, and expand domestically and abroad. Core Capital Partners led a syndicate of investors, which included current investors BlueRun Ventures and Goldman Sachs.
"FreedomPay’s innovative solution incorporates RFID technology and data management tools to increase sales and profitability,” said Mark Levine, a Core Capital managing director who will join the FreedomPay board. “We feel the market for cashless payments products will grow rapidly as businesses streamline point of sales options for the convenience of their customers. FreedomPay is positioned as the clear industry leader with major industry and government customers."
“Core Capital has a proven track record of success in building great companies in high-growth markets,” said Tom Durovsik, founder and CEO of FreedomPay, Inc. “Their expertise in both data management and logistics is of enormous value to us.”
FreedomPay, Inc.’s use of RFID technology creates a system that eliminates the need for paying with cash. FreedomPay, Inc. provides network access, hardware, installation, training, customer recruitment and support and rewards programs for companies who want to provide added convenience and time-saving measures to its customers at the register. The company currently serves the nation’s largest food service providers, Fortune 1000 companies, healthcare facilities, universities and the military among others.
About FreedomPay, Inc.
FreedomPay Inc., headquartered in Wayne, PA is the leading cashless payment solution provider utilizing RFID technology. FreedomPay provides turnkey cashless solutions for clients and operators looking for a flexible cashless program that can be customized to fit their needs. FreedomPay cashless solutions enhance café speed, convenience, and delivers guest, loyalty and online purchasing options. Learn more about FreedomPay Cashless Solutions at www.FreedomPay.com
Core Capital Managing Director, William Dunbar, Joins Board of Software Analytics Company
Washington, D.C. (January 31, 2007) - Core Capital Partners, a private equity firm that invests capital in technology ventures, announced today a Series A investment in Morrisville, N.C.-based 6th Sense Analytics, a pioneer in improving software development metrics. Intersouth Partners of Durham, NC also participated in the round. The total investment of $6.7 million will be used to accelerate research and development in addition to expanding marketing and sales.
"The 6th Sense solution delivers new levels of automation that enable developers to more easily track software development data and metrics and keep projects on budget and on time,” says William Dunbar, Core Capital managing director. “We remain active in the space because demand for better analytics software is increasing, especially as a growing number of development projects are outsourced offshore.”
“Core Capital has a proven track record of success in building great companies in our space,” said Greg Burnell, 6th Sense CEO. “This round of funding will enable us to help meet the growing demand for our solution as it provides accurate visibility into maintenance efforts and other development processes – a challenge traditional applications have failed to meet.”
The 6th Sense solution focuses on providing accurate, fact-based metrics regarding developers’ work real time in addition to capturing data that focuses on maintenance efforts such as defect tracking and bug fixes to change requests. Current customers include CoreObjects, Defywire, GXS and iconoculture.
About 6th Sense Analytics
6th Sense Analytics, a pioneer in improving software development metrics, gives developers and managers deep insight into their software development process by delivering accurate metrics without interrupting the software development lifecycle or changing the tools used. The company uses an open and independent architecture that provides visibility into the status of distributed software projects. Founded in 2004 by a team of experienced executives in the software development market, representing companies including Rational (now IBM), TogetherSoft and Borland, 6th Sense Analytics is a privately held company based near Research Triangle Park, North Carolina.
Strong Exit for Core Capital with the Pending Sale of SilverStorm
Announced $60 Million Sale of SilverStorm Will Mark First Exit in Current Fund
Washington, DC (October 4, 2006) - Core Capital Partners announced today the pending sale of SilverStorm, one of its portfolio companies, to QLogic, a leading supplier of storage networking solutions, for $60 million. When the SilverStorm sale is finalized, it will mark the first exit from Core's current fund.
"We see strong potential in this deal," said Will Dunbar, managing director with Core Capital Partners. "SilverStorm's Infiniband technology has proven to complement QLogic in a way that makes the combined company that much stronger in the marketplace." The first sale of Core's $200 million current fund, formed in 2004, is expected to see almost a 100 percent annualized return.
Core invested in SilverStorm in January of this year, leading a $13 million round of funding that included existing investors Bay Partners and Castile Ventures and newcomer Axiom Ventures. The funding was primarily used to expand the company's product development and sales and marketing efforts.
"Working with Core Capital has certainly helped position us well for this pending acquisition,” said Russ Hawkins, CEO of SilverStorm. “We believe that SilverStorm has only just begun to have an impact in the market place and QLogic is the perfect fit to take our company to the next level."
Core Capital invests in "disruptive technologies" that it believes will change how products and services are provided in a given industry. The Infiniband technology created by SilverStorm links lower cost data processors together to make supercomputing more accessible and cost-effective to companies in industries like oil and gas exploration and aerospace design that process high volumes of information.
After the sale to the multi-billion dollar networking company, SilverStorm will continue to be based out of King-of-Prussia, Pennsylvania.
Core Capital Leads New VC Trend, Funds Homeland Security Technology
Investment of $9 Million Will Bring Radio Interoperability to Fire, Police, & EMS Nationwide
Washington, DC (September 29, 2006) - Core Capital Partners announced today a major Series A investment in Twisted Pair Solutions Inc. (TPS), a company whose IP-based group communications software technology connects previously incompatible radios and other devices used by first responders. Core's backing of TPS represents a significant commitment in a new area of venture capital that will be necessary to spur the kind of technological innovation important to the expansion of national security. Core and its syndicate partners have invested $9 million in TPS to step-up its sales, marketing and partner development as well as advance its proprietary WAVE technology.
The TPS solution allows fire, police, and EMS departments to use their existing and currently incompatible communications devices across local, regional, and national jurisdictions, eliminating the coordination challenges encountered in recent national disasters. In addition, the software enables robust and granular management of communications systems such that access and control can be maintained at each respective agency. This latest investment is consistent with Core Capital’s overall investment strategy of investing in cutting edge - breakthrough technologies in very large markets backed by extremely talented management teams.
“Twisted Pair represents the perfect convergence of technology and the needs of homeland security and public safety," commented Tom Wheeler, Managing Director at Core Capital. "The WAVE platform, which is now deployed with our forces in Iraq to help them communicate, can do the same for firefighters, police, hospitals and other emergency service providers. Gone is the tragedy of September 11, when firefighters and police could not communicate with each other, the WAVE platform allows all radios, cell phones, and laptops to communicate with each other regardless of the technology used or frequency on which they operate.” Wheeler has also joined the board of directors of the Seattle-based company.
Along with the enormous implications WAVE technology has on the first responders community, this technology is used by thousands of customers in defense, finance and utilities to connect people using disparate and frequently incompatible communication technologies into a single, interoperable and manageable communications system.
“Core Capital Partners provides a critical role in our growth strategy to further our penetration into Federal and Public Safety markets,” said Tom Guthrie, President and CEO of Twisted Pair Solutions. “It was very important that we secured a strong Washington DC firm with solid industry connections and Core fills that role perfectly. I'm very pleased to have them as part of the team and involved in our expansion.”
In addition to Core Capital, the TPS investor syndicate includes: Ignition Partners of Bellevue, Washington and Chart Capital Partners of New York, New York.
Core Capital Funds Infinite Power Solutions to Transform Battery Power
Investment Will Take Film Battery Technology to Mass Production for the First Time
Washington, DC (September 6, 2006) – Core Capital Partners announced today that it has invested in one of the largest battery financings in over a decade. Core and its syndicate partners have invested $34.7 million in funding of Infinite Power Solutions, Inc. (IPS), a leader in a thin-film battery development. The funds will go primarily towards building the world’s first high-volume manufacturing facility for thin-film batteries.
“Thin film batteries (TFB) are a remarkable breakthrough in power management,” said Jonathan Silver, Managing Director of Core Capital Partners. “The batteries are ultra thin, solid state, flexible and rechargeable. IPS batteries may eventually transform the size and weight of almost any product that requires a battery.” Silver has also joined the board of directors of the Golden, Colorado-based company.
The technology has massive implications for electronics ranging from medical devices, such as pacemakers and hearing aids, to military applications and to those industries working with radio frequency identification (RFID). The rechargeable battery allows designers to create thinner products with more effective power management.
“We are thrilled to have Core Capital as an investor,” said Ray Johnson, President and CEO of IPS. “Their expertise, track record, and management abilities make them an especially desirable partner for us. We place a premium on the strategic value that top tier venture capital firms like Core Capital can bring to our company.”
While most of the funds raised will go toward rapidly expanding manufacturing capacity at IPS, proceeds will also be used to further next generation research and development and accelerate business development.
“Our investment in IPS is in line with our overall strategy of investing in disruptive technologies in very large markets, backed by extremely talented management teams,” said Silver. “Thin film batteries could eventually change the way we live and work.”
In addition to Core Capital, the IPS investor syndicate includes: Polaris Venture Partners of Boston, MA, and D.E. Shaw & Co. of Cupertino, California.
Covega Announces $10 Million Financing
WASHINGTON, D.C. and JESSUP, MD (August 17, 2006) – Covega Corporation, a leading provider of state-of-the-art, opto-electronic components and subsystems, announced today that it had raised ten million dollars in expansion financing. Core Capital Partners, Intersouth Partners, and Optical Capital Group/HRLD were the lead investors in this round, which also included Siemens Venture Capital and Square One Bank. Covega has raised $30 million since its inception in February 2003 and will use this latest round to fund working capital growth, expansion of manufacturing capacities and acceleration of the product roadmap for new tunable optical components.
“Demand for our industry leading gain chips and small form factor modulators for tunable lasers and transponders has dramatically increased to record volumes over the last year. This has helped our business to grow over 25% quarter over quarter at more than twice the industry average. This recent infusion of capital will enable us to scale our operations to match the growth in the marketplace,” said Joe Dixon, CEO of Covega Corporation.
One of Covega’s major drivers has been “wavelength tunability,” which both reduces network capital and operating costs, and enables the deployment of agile networks. Products such as Covega’s gain chips allow tunable laser and transponder providers to launch light further and tune over a significantly greater bandwidth than competing solutions. This lowers their overall costs by minimizing the need for expensive optical signal regeneration or amplification. It also enables carrier customers to tune these products to any specific wavelength, directly “in the field,” by using a single component.
“Covega’s products now sell either directly or indirectly into 8 of the 11 leading systems integrators and original equipment manufacturers,“ said Pascal Luck, managing director of Core Capital Partners. “We are very excited to play a role in the company’s growth as it continues to attract and support new customers.”
Covega Corporation has established world-class proprietary technologies in InP and LiNbO3 to produce high performance optical devices and modules at a low cost with very small footprints. With early focus on the telecom, datacom and CATV industries, Covega now generates over one-third of its revenue from serving the defense, medical, industrial and instrumentation industries.
Core Capital Partners Announces a $35 Million Series D Funding for Portfolio Company – NexTone Communications
Core Capital Partners
For Immediate Release
Core Capital Partners Announces a $35 million Series D Funding
For Portfolio Company – NexTone Communications
Washington, DC – November 7, 2005
Core Capital Partners, a Washington, DC-based venture capital fund with more than $350 million under management, announced today that NexTone Communications one of its portfolio companies completed a $35 million Series D investment round. Core participated in this round with new investor One Equity Partners, and prior investors BCE Capital, Safeguard Scientific, Inc. (NYSE: SFE) and Mid-Atlantic Venture Funds.
NexTone Communications is the leading supplier of distributed and intelligent session management solutions for voice over IP (VoIP) and other real-time IP services. NexTone has more than 370 carriers and enterprise customers worldwide, including tier one carrier customers in Latin America, Europe, Asia and North America. NexTone-based production networks carry over 50% of all long distance VoIP traffic in the world.
“Core Capital’s continued investment in NexTone, including participation in this new round of financing, is a strong validation of our leadership in the session management market and achievements to date,” said Malik Khan, Chairman and CEO of NexTone. “Core Capital has been instrumental in supporting the development of the Company by helping guide strategic direction, develop financing strategies, and provide supportive board counsel.”
“NexTone continues to be at the nexus of the evolution to an all-IP network. Its session management products allow service providers and enterprises to deploy VoIP services in a reliable and scalable manner” said Pascal Luck, a Managing Director at Core Capital Partners. “This investment validates the progress the Company has made in the market and allows the company to expand its product into adjacent markets and customer segments.”
Core Capital led the Company’s first institutional round in June 2002, and has participated in all four of the company’s financing rounds.
About Core Capital
Core Capital Partners, LP is a $350 million venture fund headquartered in Washington, D.C. which provides capital to emerging technology companies located on Eastern Seaboard. Portfolio companies include InPhonic, Sourcefire, NexTone, buySAFE, sentitO Networks, Covega, Trinity Convergence, Trust Digital IXI, VPI and Core Communications. For more information on Core, please visit the fund’s website: www.core-capital.com.
Core Capital Leads $9.0 Million Investment in VPIsystems
Network Planning Software Provider to Use Funding to Support Rapidly Growing Global Customer Base
Washington, D.C. – March 1, 2005 – Core Capital Partners, a venture capital firm that invests in a broad range of technology and telecommunications companies, announced today that it has led a $9.0 million round of funding for VPIsystems. VPIsystems is a leading provider of software used for modeling and optimizing communications network capacity and improving the efficiency of the network planning processes. Additional investors include Techno Venture Management, Siemens Venture Capital and Cipio Partners.
VPIsystems’ network resource lifecycle management solution is the world’s first software system that unifies the entire process of network resource planning and engineering for communications carriers. Customers include leading carriers and communication equipment vendors such as AT&T Wireless, Bell South, British Telecom, Fujitsu, Cisco and Motorola.
“VPIsystems helps automate the network planning process and optimize carriers’ network capacity, to minimize capex and opex spend. This need is clear as evidenced by the customer adoption in the carrier and equipment vendor communities,” said Pascal Luck, Managing Director of Core Capital Partners. “Carriers and OEMs are in industries with significant competitive pressures. This kind of rapid adoption demonstrates the opportunity of the right disruptive technologies with deliverable ROI to change long-standing telecommunications business processes.”
Core Capital is an active investor in the telecommunications and network management space with investments in companies such as NexTone Communications and sentitO Networks – both leaders in the telecom equipment space. In addition, the firm was an investor in VocalData, a VoIP applications provider acquired by the telecom equipment vendor Tekelec (Nasdaq: TKLC) in September 2004.
“We are extremely pleased to have an investor with such deep roots in the telecom market,” said John Holobinko, President and CEO of VPIsystems. “Core is well versed in the challenges facing network operators and OEMs, and immediately understood the value of our software. This investment helps VPIsystems support an expansion of strategic alliances, increase sales and customer support infrastructure and remain ahead of market with product developments.”
VPIsystems® is the leading provider of decision support software and network planning and design software to the world’s largest communications carriers and equipment vendors. Major carriers use VPI network planning software to optimize their current network capacity and to minimize the CapEx required to increase network capacity. VPI software enables them to streamline network planning and engineering processes, making network resource lifecycle management significantly more efficient with resulting OpEx savings. VPIsystems software has enabled carriers to more efficiently plan, implement and manage VoIP traffic; implement highly cost-effective backbone networks to interconnect regional networks; improve the way converged services are implemented and managed across their networks; optimize and reduce third party network charges; and reduce the amount of equipment they add to their networks to implement new capacity at the transport and service layers. VPI enables communications equipment vendors to generate more competitive customer proposals that improve sales and enable them to improve their product designs. VPIsystems has offices around the world including Holmdel, NJ; Richardson, TX; Berlin, Germany; London, England; Minsk, Belarus; Melbourne, Australia, and Singapore.
Core Capital Invests in IXI Corporation
Provider of Marketing Data to Expand Product Suite and Target New Markets
Washington, D.C. – November 22, 2004 – Core Capital Partners, a $170 million venture capital fund that invests in a broad range of technology companies, announced today that it invested $2 million in McLean Va.-based IXI Corporation, a provider of market targeting and customer segmentation systems focused on the U.S. affluent market. IXI is an industry leader and will use the funding – its first institutional round – to launch new product lines and to expand its market breadth. Blue Chip Venture Company of Cincinnati, Ohio and ECentury Capital of McLean, Va. also joined the investment syndicate.
IXI enables marketers to segment national audiences by affluence in unmatched detail. Its proprietary wealth-measurement techniques provide financial marketers the ability to target groups of individuals based on specific wealth and financial behavior. In addition, IXI's products allow its customers to track market share in every U.S. geographic market from a national scope to an individual zip code. With IXI’s new products, marketers of all kinds are now able to target specific customers and prospects based on their specific affluence levels and lifestyle preferences.
“The IXI solution enables users to improve marketing effectiveness with unprecedented precision,” said Will Dunbar, Managing Director of Core Capital Partners. “IXI’s databases and methodology simply cannot be replicated. This competitive edge, in combination with an exceptionally talented management team, leaves IXI well positioned to continue its healthy growth within the financial services industry and beyond.”
“Most people in the financial services industry know that more than 20 percent of wealth in the U.S. is held by less than one percent of all households – but only IXI knows how to reach them,” said Thomas E. Dailey, President & CEO of IXI. “Through previous investments Core Capital brings exceptional experience in IXI’s own target markets, and in business intelligence software, which makes them the perfect capital partner to help us extend our success.”
Dailey joined IXI in early 2004 after nearly thirty years in consumer marketing, data mining and marketing information services. He was formerly CEO of Claritas, Inc., a leading provider of precision marketing, segmentation and targeting solutions. While at Claritas, Dailey guided the firm through multiple strategic acquisitions and charted a path of steady growth including a two-fold increase in revenues during one two-year stretch.
About IXI Corporation
IXI Corporation creates Customer Segmentation and Market Targeting Systems that help businesses maximize sales opportunities within their customer bases, find prospects that have business potential similar to that of their best customers, and assess their positions and competitive progress in each relevant geographic market. For over a decade, customers have relied on IXI as a continuing source of information for strategic and tactical marketing decisions and as an expert provider of in-depth customer analytics, prospect targeting solutions, and market-share tracking systems. IXI Corporation is a privately held company and is based in McLean, Va.
Trust Digital Helps Enterprises Tackle Enterprise Security Threat Posed by Mobile Devices
New Version of Software Helps Eliminate Risk of Corporate IP Theft, Device Loss and Regulatory Liability
McLean, Virginia – October 20, 2004 – Trust Digital, a leading provider of enterprise mobile security software solutions, today released the next version of its flagship software product, TRUST Enterprise Secure. The new version adds a series of innovative features that address the top concerns of enterprises attempting to leverage the productivity gains and competitive advantages possible through corporate use of personal mobile devices and smart phones, while addressing the significant security and liability threat posed by a non secure network ‘Mobile Edge™.’
Gartner predicts that by 2005 more than 60% of Global 2000 workers will have mobile access to corporate applications and 40% of corporate data will reside on handheld devices. This migration of corporate information to mobile handheld devices creates new and evolving security risks and regulatory liabilities for enterprises world-wide. Trust Digital’s flagship product is a cross-platform software solution that provides a policy-based framework for automating the creation, deployment, enforcement, auditing and control of security policies at the Mobile Edge™.
TRUST Enterprise Secure 4.0 feature improvements include:
- An enhanced administrative console interface
- Enhanced reporting capabilities for the mobile vulnerability and asset analysis tool
- Global administrative control over authorized mobile devices within an enterprise
- Updated encryption capabilities designed to meet the new regulatory FIPS 140-2 requirement for US Government and related agencies
- The ability to dynamically create and update mobile security policies each time a mobile device connects to the corporate network, enabling IT and security departments to leverage their existing resources and still manage the secure proliferation of personnel mobile devices.
Trust Digital is the only enterprise mobile security company to offer an infrastructure solution that easily integrates with existing security infrastructure protocols. Trust Digital’s multi-layer approach is designed to address the growing number of threats at the network mobile edge, not simply those threats explicit to any given device.
“Enterprises need to immediately address the security risk that dramatic device proliferation creates and they need to do so with an infrastructure-based solution,” added Nick Magliato, CEO of Trust Digital. “Our customers and prospects will greatly benefit from the new features and functionality of TRUST Enterprise Secure 4.0, a software product developed with needs of the enterprise wide security and IT managers in mind.”
TRUST Enterprise Secure 4.0 is an enterprise application, which runs on standard Microsoft Servers and PCs as well as most mobile device platforms including products based on the most recent versions of the Palm and Pocket PC/MS Smartphone platforms. For more information, to purchase or to obtain a full evaluation copy of Enterprise Secure 4.0, please visit www.trustdigital.com.
Trust Digital’s products are cross-platform FIPS 140-2 certified.
About Trust Digital
Trust Digital is a leading guardian of the highly vulnerable Mobile Edge™ of the enterprise computing network, enabling today’s knowledge worker to use their choice of mobile devices while minimizing corporate risk, liability, and IT headaches. The flagship software solution, TRUST Enterprise Secure, applies a centralized, multi-layered, policy-based solution across PCs, mobile devices and mobile peripherals. With a customer based primarily composed of Financial Services, Government/Military, and Healthcare companies, Trust Digital, in tandem with its worldwide network of partners, is committed to securing and managing the network mobile edge by delivering world-class enterprise software solutions and customer support. For more information, pls visit our website, www.trustdigital.com.
Core Capital Leads Series A Round in Trust Digital
Former USi Executive Nick Magliato Joins as CEO
Washington, D.C. – October 19, 2004 – Core Capital Partners, a $170 million venture fund that invests in a broad range of technology companies, announced today that it led a $3.1 million Series A round in McLean, Va.-based Trust Digital – a leading provider of enterprise mobile security solutions. Avansis Ventures also joined the investment syndicate.
Trust Digital helps enterprises leverage the productivity advantages associated with personal mobile devices and smart phones without exposure to the security risks at the highly vulnerable “Mobile Edge” of the enterprise-computing environment. Trust Digital’s flagship product is a cross-platform software solution that provides a policy-based framework for automating the creation, deployment, enforcement, auditing and control of security policies at the Mobile Edge.
Trust Digital also announced that Nick Magliato, a former senior executive of USi, Inc., has joined the company as CEO. Most recently, Magliato was an Executive Vice President at USinternetworking, the world’s leading application service provider. Previously, Magliato was a corporate officer at DIGEX and was instrumental in facilitating the company’s initial public offering and subsequent sale to MCI.
“Nick brings exceptional managerial and leadership skills to the table that will complement Trust Digital’s existing management team,” said Pascal Luck, Managing Director of Core Capital Partners. “The time is right for Trust Digital to accelerate its growth as enterprise needs to address mobile security challenges become a mainstream concern. We are confident that the company’s prospects for long-term success are strong with Nick leading the company.”
“The market is looking for a security answer to the explosion of mobile devices operating in today’s enterprise. The productivity gains offered by these devices will only serve to drive additional growth. In fact, we expect billions of these unsecured devices to be operating in enterprises in the next few years,” said Magliato. “The team here as done a great job of building a product that secures the use of devices at the Mobile Edge of the enterprise. It has a loyal customer base made up of government, health care and financial services companies. I look forward to propelling Trust Digital’s growth and am particularly pleased to be working with Core Capital. ”
The company will use the funds to expand its sales team, significantly increase its market presence, and invest in additional software development.
About Trust Digital
Trust Digital is a leading guardian of the highly vulnerable Mobile Edge of the enterprise computing network, enabling today’s knowledge worker to use their choice of mobile devices while minimizing corporate risk, liability, and IT headaches. The flagship software solution, TRUST Enterprise Secure, applies a centralized, multi-layered, policy-based solution across PCs, mobile devices and mobile peripherals. With a customer based primarily composed of Financial Services, Government/Military, and Healthcare companies, Trust Digital, in tandem with its worldwide network of partners, is committed to securing and managing the network mobile edge by delivering world-class enterprise software solutions and customer support. For more information, please visit our website, www.trustdigital.com.
Core Capital Exits Venture Investment in VocalData
Tekelec’s $27.5 Million Acquisition Yields Core Healthy Profit; Indicates a Rapidly Maturing Market
Washington, D.C. – September 21, 2004 – Core Capital Partners, a $170 million venture fund that invests in a broad range of technology companies, announced today it made a healthy profit by exiting its venture investment in VocalData when Tekelec (Nasdaq: TKLC) agreed to acquire the company in an announcement yesterday. Core Capital’s investment in the Austin, Texas-based provider of hosted Internet protocol (IP) telephony applications came when the firm joined a third round investment in December 2003.
Core Capital's investment in VocalData is indicative of the venture capital firm's commitment to near term VoIP technologies that fill significant gaps in traditional telecom vendor product lines. Other VoIP-related companies in Core Capital’s portfolio that are seeing increasing and substantial market acceptance including sentitO Networks, NexTone and Trinity Convergence. sentitO makes VoIP switching equipment, NexTone is an end-to-end session management product developer and Trinity designs, develops, and markets embedded software solutions for developers of converged network equipment.
“At the time of our investment VocalData had attracted a strong syndicate of key investors, gained a substantial customer base and its technology was well vetted,” said Mark Levine, Managing Director at Core Capital Partners. “Core Capital’s investment philosophy is to invest both in the idea and the team and when Michael Camp joined VocalData as CEO in 2003, we knew the confluence of these factors would make the company a winner.”
Levine thinks the spate of acquisitions, marked by Lucent’s purchase of softswitch vendor Telica and Tekelec’s previous deals to acquire Santera Systems, Taqua Systems and Steleus, is indicative of a rapidly maturing VoIP market. Core Capital expects the pace of consolidation in the telecommunications industry to continue over the next six to twelve months and believes its portfolio of companies is well positioned for continued success.
Tom Wheeler Joins Core Capital Partners
CTIA’s Former Top Executive Joins Private Equity Fund as a Special Partner
Washington, D.C. – September 14, 2004 – Core Capital Partners, a $170 million venture fund that invests in a broad range of technology companies, announced today that telecommunications veteran Tom Wheeler has joined the firm as a special partner. Wheeler will assist the firm in identifying and pursuing new technology investment opportunities and will serve on the board of directors of selected portfolio companies.
Wheeler recently retired as the President and CEO of the Cellular Telecommunications and Internet Association (CTIA) after more than a decade with the organization. The CTIA is an international organization that represents all sectors of wireless communications-cellular, personal communication services and enhanced specialized mobile radio. Members include the world’s largest service providers, manufacturers, and wireless data and Internet companies. As President, Wheeler worked closely with senior management of all the leading telecommunications companies and led the industry through massive regulatory and policy changes.
Prior to his work at CTIA Wheeler was a telecommunications entrepreneur who founded or helped develop several companies both domestically and internationally. From the mid-1970s to the mid-1980's he also served as President of the National Cable Television Association (NCTA), the principal trade association of the cable television industry. NCTA represents cable operators serving more than 90 percent of the nation’s cable television households and more than 200 cable program networks, as well as equipment suppliers and providers of other services to the cable industry.
“We are delighted that Tom has joined the firm,” said Jonathan Silver, Managing Director of Core Capital Partners. “Tom’s personal impact on the telecommunications industry is near legend. As a telecom executive, policy and planning expert and entrepreneur, Tom brings unparalleled expertise to the Core Capital team.”
Wheeler’s business acumen has been instrumental to the successful growth and development of a number of public and privately held companies. He is currently on the board of several high-profile companies including, Earthlink, InPhonic and Telephia. In addition, he is the co-founder of SmartBrief, an electronic information service for vertical markets.
“Core Capital’s focus on truly transformational technologies and its concentration on the opportunity-laden East Coast market have placed its performance at the top of the venture industry,” said Tom Wheeler. “Even more compelling, however, is the high caliber of people at the firm – Core Capital’s people are among the best in the industry and I’m thrilled to be part of this team.”
Wheeler has been a frequent commentator on technology issues. His opinion columns have been widely published in major daily newspapers such as the Washington Post and Los Angeles Times. In 2000, Doubleday published his first book Take Command: Leadership Lessons of the Civil War on the confluence of business, technology and leadership. He is currently working on his next book, From Gutenberg to Google, about the impact of technology-driven networks throughout history.
Wheeler is a Trustee of the John F. Kennedy Center for the Performing Arts, Chairman of the Foundation for the National Archives and a director of the Public Broadcasting Service.
Core Capital Leads $9.5 Million Investment in Sentito Networks
Funding Marks Latest Milestone in a High-Growth Period for VoIP Switching Vendor
Washington, D.C. – August 17, 2004 – Core Capital Partners, a $170 million private equity fund that invests in early-stage technology ventures and provides expansion capital to growth companies, announced today that it led a $9.5 million dollar Series D round investment in VoIP switching vendor sentitO Networks. The company’s strong syndicate of investors includes Kodiak Venture Partners, Mid-Atlantic Venture Funds, Technology Venture Partners and Inflection Point Ventures. The funding follows a wave of market momentum stemming from Rockville, Md.-based sentitO Networks, including the appointment of an accomplished industry veteran as CEO. sentitO Networks has raised $53.5 million to date.
In June, sentitO announced that Dennis Chateauneuf, who has previously served as CEO for several telecom companies such as DTI Networks, CopperCom and Pelago Networks, would take the helm as top executive. In subsequent weeks sentitO announced new customers including KBT Systems and Teleplanet Communications, and also launched a major interoperability alliance with eight noteworthy VoIP vendors. Among the key vendors that joined the alliance are BroadSoft, NexTone Communications and VocalData. This past July, independent venture capital research company Growthink Research named the company one of the “Top Emerging Companies” for the telecommunications and software sector.
“VoIP has fundamentally altered the telecommunications landscape,” said Mark Levine, managing director of Core Capital Partners. “sentitO addresses intense carrier demand for cost-effective infrastructure solutions that enhance competitive advantage. The ElasticEdge™ technology provides carriers with a unique value proposition that bridges the gap between old and new infrastructure, providing unprecedented fluency between traditional voice and next-generation IP-based networks.”
“This is a time of momentous growth for sentitO, as we see demand escalate for our carrier-focused VoIP switching solutions,” said Dennis Chateauneuf, chief executive officer for sentitO Networks. “Our success is due in large part to the continued support, experience and knowledge that returning investors like Core Capital bring to sentitO as we solidify our leadership position in this rapidly expanding market.”
In March 2003, Core Capital Partners and TELUS Ventures joined a $14 million series B round. More recently Kodiak Ventures led $19 million dollar Series C round. The company will use the funding to expand sales and marketing initiatives.
sentitO Network’s switching platform – the Open Network Xchange (ONX) – is the first platform designed entirely for VoIP. It is the second VoIP vendor in six weeks in which Core Capital Partners has invested. In July, Core Capital invested in a $10 million Series C round in Gaithersburg, Md.-based NexTone Communications.
About sentitO Networks
sentitO Networks is a leading provider of open, standards-based VoIP infrastructure solutions for global telecommunications service providers. Its award-winning Open Network Xchange (ONX) architecture, powered by patent-pending ElasticEdge™ technology, delivers a broad range of service provider applications. sentitO is a privately held company with headquarters in Rockville, Md. The company has received funding from leading service providers and VC firms, including Kodiak Venture Partners, Core Capital Partners, Technology Venture Partners, Mid-Atlantic Venture Funds, Inflection Point Ventures, and TELUS Ventures. For more information, please visit the company's Web site at www.sentito.com.
Core Capital Partners Announces $10 Million Round in NexTone
BCE Capital Joins Returning Investors Core Capital, Mid-Atlantic Venture Funds and SafeGuard Scientific Validating Technology and Market Potential
Washington, D.C. – July 13, 2004 – Core Capital Partners, a $170 million private equity fund that invests in early-stage technology ventures and provides expansion capital to growth companies, announced today a Series C investment in Gaithersburg, Md.-based NexTone Communications. BCE Capital, the venture capital arm for Bell Canada Enterprises, led the round, which totaled $10 million, and joins returning investors including Core Capital, Mid-Atlantic Venture Funds and SafeGuard Scientific, Inc. (NYSE: SFE). Core Capital Partners previously led a $3.5 million dollar round in July 2002 and today’s announcement brings the total amount of funding raised by NexTone to $32.5 million. NexTone will use this round to enhance client services, advance product development and expand sales and marketing initiatives. David McCarthy managing director at BCE Capital will join the NexTone Board of Directors.
NexTone develops end to end session management products that allow carriers to route, manage, and control real-time IP traffic seamlessly and cost effectively. NexTone’s technology, which complements telecom gear from bellwethers such as Cisco Systems, Nortel Networks and Sonus Networks, has made substantial market traction with more than 140 carrier customers.
“The addition of BCE Capital to NexTone’s strong syndicate of investors speaks volumes to NexTone’s growth and potential as a company,” said Pascal Luck, managing director for Core Capital Partners. “The interest from potential investors for joining this round in NexTone was substantial and that is indicative of the high demand to invest in credible companies – with growing revenues – in a rapidly emerging industry.”
“The deep-rooted experience of our previous investors in the telecommunications market has been fundamental to our growth and development and we welcome BCE Capital to our family of investors,” said Hank Firey, chief executive officer for NexTone. “In many ways NexTone views BCE Capital’s decision to join this round as especially noteworthy because it validates our session management technology and value proposition.”
About NexTone Communications
NexTone Communications develops carrier-grade products that provide scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology can dramatically reduce carrier capital expenditures while providing ongoing operational efficiencies, such as reduced interconnect turn-up time and simplified network operations. NexTone is headquartered in Gaithersburg, Maryland USA with domestic and International sales offices worldwide. For more information, visit www.nextone.com.
Core Capital Leads $6.7 Million Series B for RulesPower
Core Capital Joins Kodiak Venture Partners Bringing Total Funding to $11 Million
Washington, D.C. and Waltham, Mass. – March 30, 2004 – Core Capital Partners and Kodiak Venture Partners announced today that they have closed a $6.7 million series B round in Burlington, Mass.-based RulesPower, a developer of rules-driven Business Process Management (BPM) software. Core Capital led the round, joining returning investor Kodiak Venture Partners. The latest round brings the total amount of funding raised by RulesPower to $11 million and supports the growth potential of the company’s business. RulesPower will use the funding to build out its sales team, expand marketing efforts and solidify its position as the leader in the rules-driven BPM market.
Jonathan Silver, managing director at Core Capital Partners will join RulesPower’s board of directors. The board currently includes, Lou Volpe, managing general partner at Kodiak Venture Partners and RulesPower CEO Stephen Campbell.
“The technology behind RulesPower is markedly superior to any BPM offering on the market in both modeling and automation," said Jonathan Silver. “RulesPower’s software closes the gap between business and information technology by enabling customers to automate more and more complex human tasks. RulesPower provides businesses with a higher degree of flexibility, efficiency and optimization.”
“Enterprises are realizing that automation of business processes is no longer a nice-to-have, it’s a must-have,” said Lou Volpe. “In a complex world economy, where productivity and agility in operations is key, RulesPower offers breakthrough software to optimize processes that drive businesses to success.”
“We greatly value the deep experience that Core Capital and Kodiak bring to the table,” said Stephen Campbell. “Ultimately, the difference between a good BPM company and a great one hinges on the quality of the investors and the team behind it.”
RulesPower software helps organizations prevent costly business mistakes and improve their agility and productivity by first defining, analyzing, and validating their business processes, and then automating and optimizing these processes. The RulesPower business process management system provides a single, unified environment to model, analyze, manage and execute business rules and workflow. Its Relational Logic Technology (RLT™) makes it possible to manage the complexity of business processes with advanced tools for analyzing the logic and flow of complete processes to visually identify errors and the impact of proposed changes to the system. RulesPower co-founder Charles Forgy invented the business rules engine technology that dominates the industry today.
About Kodiak Venture Partners
Kodiak Venture Partners is a Waltham, Massachusetts-based venture capital firm focused on seed and early stage investments in emerging communications/IT, semiconductor and software companies. With a focus in the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak's investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building and funding market leaders. For more information, visit www.kodiakvp.com.
RulesPower rules-driven Business Process Management (BPM) software helps organizations improve their agility and productivity by first defining, analyzing, and validating their business processes, and then automating and optimizing these processes. The RulesPower system reduces process times significantly by automating routine human decision-making, interactions with systems and collaboration with colleagues. RulesPower provides a common framework for business & IT to define and develop business systems, and allow operations managers to easily adapt their systems to changing business needs. RulesPower is based in Burlington, MA. For additional company information, visit www.rulespower.com.
Core Capital Partners Closes Investment in VocalData, Inc.
Washington, D.C. – Dec. 3, 2003 – Core Capital Partners, a $180 million private equity fund that invests in both early-stage and mid-sized technology companies, announced today that it has invested $3 million in VocalData, Inc., an application developer of hosted IP telephony applications. Core Capital joins existing investors Austin Ventures, Trinity Ventures, Seed Capital Partners L.P., Hickory Ventures, and JP Morgan Partners in the financing round, which raised a total of $15.5 million that will be used to strengthen the sales momentum for VocalData’s market leading voice-over-IP application server.
“With a team of proven executives and an innovative platform, VocalData is positioned well in this evolving marketplace,” said Mark Levine, Core Capital’s managing director. “VocalData’s products address a need for enhanced telephony solutions that help carriers cut costs while creating new revenue opportunities. The platform combines high scalability and reliability with a market-leading feature set that allows service providers to deliver exciting new services to their customers,” he added.
“This latest funding will help us stay focused on the business we’ve been building,” said Michael Camp, VocalData’s president and CEO. “The principals at Core Capital have a profound understanding of the VoIP marketplace and its importance in the investment arena and the communications field. We welcome Core Capital to our high quality investment syndicate.”
Core Capital Invests in Trinity Convergence
Washington DC (March 27, 2002) – Core Capital Partners, a $180 million private equity fund that invests in early-stage technology companies, led a $3.1 million Series A financing round in Trinity Convergence, a developer of software solutions for the converged telecommunications market. Intersouth Partners co-led the round, with Mid-Atlantic Ventures also participating.
“It’s rare for an investor to find a company that can truly set a new industry standard, so we are exceptionally pleased to invest in Trinity Convergence,” said William Dunbar, managing director of Core Capital Partners. “Trinity is a bright star in the VoIP industry, with a sophisticated product and a key partnership with Motorola. We anticipate the company will be a pivotal player in optimizing equipment for next-generation networks.”
Trinity Convergence designs, develops, and markets embedded software solutions for developers of converged network equipment. Through its flagship product, VeriCall, Trinity develops and deploys packet voice and fax software for telecommunications OEMs to enable the delivery of cutting-edge telecommunications applications throughout the world. VeriCall is an embedded framework providing the industry’s first completely integrated solution for packet telephony, including voice, fax, and modem over network and 3rd Generation (3G) wireless technology.
“We sought investors, such as Core Capital, who not only know the telecommunications industry, but could lend critical operational expertise to help us build out marketing and sales strategies,” said Jeff Critser, president and CEO of Trinity Convergence. “The early response from equipment developers demonstrates that our portable solution is a compelling alternative to traditional architectures. With this financing, we’ll be able to aggressively penetrate our market.”
"Even though there has been a downturn in the telecom space, DSP shipments targeted at the VoIP markets have continued to be a bright spot within the industry,” said Pascal Luck, principle at Core Capital Partners. “Trinity focuses on providing software that allows network equipment vendors increasing flexibility to build VoIP solutions using the latest breed of DSPs."
About Trinity Convergence
Trinity Convergence provides high performance packet voice software for telecommunications equipment suppliers. VeriCall, Trinity's premier product, delivers a highly dense, integrated and feature-rich solution for next generation, converged network equipment. Headquartered in Raleigh, NC, Trinity maintains its R&D center in Cambridge, United Kingdom, a concentrated region of telecommunications development. To service its customer base in North America and Europe, Trinity has sales, marketing, and technical presence on both continents. For more information about Trinity and VeriCall, visit www.trinityconvergence.com.
Core Capital Partners Expands Local Presence, Merges with GCI Venture Partners
Washington, D.C. – June 28, 2001: Core Capital Partners, one of the Mid Atlantic’s leading venture capital funds, announced today that it had absorbed GCI Venture Partners LLC, a $25 million early-stage fund founded in 1997. Mark Levine, the Managing Director of GCI Venture Partners, will join Core Capital founders Jonathan Silver and William Dunbar as a Managing Director of Core Capital Partners.
Jonathan Silver, Managing Director of Core Capital, said, “We are delighted to have incorporated GCI Venture Partners into our activities. GCI, through the quality of its investment team and its relationship with parent company Geo-Centers, Inc., adds substantial depth to our investment research in both advanced telecommunications and the life sciences. “ According to Mark Levine, “the merger allows us to leverage the assets of both funds and better serve our limited partners and portfolio companies. The GCI and Core partners have already worked together on a number of successful transactions. The new entity expands our presence and our resources in the Mid Atlantic.”
Local companies in the GCI Venture Partners portfolio include webMethods, Viaken Systems, Sentit0 Networks, Claragen, Wisor and Nextone.
Prior to forming GCI, Mark Levine, was a founder of Geo-Centers, Inc., an R&D services firm with over 500 employees in 30 offices throughout the United States. The company’s expertise includes chemical and materials research; biotechnology; engineered systems and technology transfer; and biomedical health research. Ed Marram, CEO of Geo-Centers, will also join Core Capital as a Special Partner responsible for the development of the fund’s R&D Advisory Board. Angel Brunner joins Core Capital as an associate.
Core Capital Partners - Investment in Newsletters.com
Washington DC - April 10, 2000 - Core Capital Partners LP announced today that it made an investment in Newsletters.com, a leading aggregator and syndicator of value-added content. The Fund invested $400,000 in the company's first institutional round and provided another $400,000 in bridge financing.
Newsletters.com, with 45 employees headquartered in Silver Spring, MD is revolutionizing the marketplace for Expert Information. The company aggregates licensed content from newsletters, trade magazines, market research studies, analyst reports, conference and seminar transcripts and other specialty publications to create industry-specific collections of Expert Information. Current subjects include technology, healthcare, finance and other industry sectors.
Newsletters.com markets these products to professional and corporate audiences through co-branded partnerships with vertical Web sites and corporate Intranets. Customers can search or browse Newsletters.com’s content on specific subject areas, receive regular updates about new content in their chosen field or be directed to related content available through Newsletters.com.
Core Managing Director Jonathan Silver said, “Newsletters.com has developed a marquis brand in the value-added information space and is one of the few content companies with a clear and proven revenue model. We believe that Newsletters.com is well positioned to serve as a key e-information service for corporate and individual users anywhere."
Jeff Ronaldi, Chief Executive Officer of newsletters.com commented: “We are incredibly excited about the investment Core Capital has made in our company. The Core partners bring an unusually strong set of finance, management and marketing skills and relationships to our efforts and have already been instrumental in helping position us with the financial community."
Newletters.com has also received funding from E-Companies and Steve Walker and Associates.
Core Announces a New Fund
Washington DC - March 1, 2000 -The $160 million fund will target investments in small-cap growth companies and early-stage technology companies, primarily in the Mid-Atlantic region.
The fund will focus on information technology and technology-impacted companies, media and communications companies and business services providers. Initial investments will typically be in the $1-10 million range.
The fund’s partners, Jonathan Silver and William Dunbar, have, between them, over twenty-five years of investment experience acquiring, financing and managing privately-held growth companies.
Silver was, most recently, Counselor or Senior Advisor to the U.S. Secretaries of Commerce, Interior and Treasury. Earlier, he was a Managing Director and the Chief Operating Officer of Tiger Management, one of the nation’s largest and most successful hedge funds, and President of Commonwealth Holdings, Inc., a private equity partnership with interests in finance, health and wellness and business services. He has held senior operating roles in several well-known media companies and began his career at McKinsey and Company, a business consulting firm.
Dunbar was CEO and founder of Pebble Hill Capital, a private equity firm that financed such early-stage technology companies as WebMethods, a B2B software company that recently completed one of the country's most successful IPO's. Previously he was President of Allied Capital Corporation II, a publicly-traded $100 million private equity firm, and Chief Investment Officer of Allied Capital Advisers, a $700 million family of investment companies. While he was President, Allied II acquired or financed forty-six small and mid-cap growth companies. Dunbar began his private equity career at Venture America, a Mid-Atlantic venture capital firm, where he worked on the early-stage financing of such companies as Discovery Communications and Digene.
The fund’s limited partners represent an impressive cross-section of the nation’s leading financial institutions and most experienced investors. Institutional funding sources include Citigroup, the Travelers Insurance Company, the Standard Fire Insurance Company, Mercantile Bank and United Bank. Individual limiteds include Sandy Robertson, former Chairman of Robertson Stephens; Frank Newman, former Chairman of Bankers Trust; P.C. Chatterjee of Winston Partners and the Soros Group; David Shaw, Chairman of hedge fund D.E. Shaw; David De Leeuw, Managing Director of McCown De Leeuw; Robert Machinist, head of Capital Markets for the Bank of New York; Lou Ricciardelli, past President of County NatWest Bank; Raj Singh, Board of Directors of Teligent, Chairman of Telcom Ventures and co-founder of LCC International; Rod Armstrong, former Chairman of bank software company Peerless Group; David O’Connor, former Vice-Chairman of Honor Technologies, Inc., a leading electronic banking network and many others.
The new fund's Advisory Board includes David De Leeuw and P. C. Chatterjee as well as Gordon Macklin, former chairman of Hambricht and Quist and past President of the National Associates of Securities Dealers (NASD) and Federico Pena, former Secretary of Transportation & Energy and currently a Partner at Vestar Capital.