DEALFLOW DASHBOARD / May 1, 2001INTERNET: Mondosoft, $3.6MSOFTWARE: Brix Networks, $22M; SmartSynch, $22.5; Terrace Mountain Systems, $1.5MDEALFLOW DIGEST: Atoga, $50M; Coast Software, $5M CDN ($3.25M US); Correlation Technologies, $4M; Transcept, $8.4M; Wisor, $10MDEALFLOW DISH: Campsix's last breathELEVATOR PITCH: Xportical, $1M

TOP STORY: @SECURITY USES BROADBAND TO KEEP HOMES SAFE@Security's chairman Jerry Lindauer knows something about the importance of security. He did a stint in Vietnam in 1966 as a Marine company commander. He had his arm nearly destroyed by a bullet during a fierce firefight and received two Bronze Stars and a Purple Heart for his efforts.

With @Security, the tough-talking Texan is bringing complete security systems into the home through broadband connections. Using a combination of cameras, microphones, and other intrusion detection devices, customers can receive 24-hour monitoring as well as video and audio alarm verification services, all through a modem. "When the glass breaks," Mr. Lindauer boasts, "we'll hear it."

The services are run remotely, via an Internet browser, and consumers can access the video and audio coverage of their home via laptops or PDAs, and soon, on their cell phones. This means that customers can watch the babysitter on their Handspring during a night out, or access the surveillance cameras during holiday in Bordeaux. @Security (http://www.atsecurity.net) is still in the alpha stage and won't officially launch for another year.

Mr. Lindauer, who recently sold his cable holdings in the U.S. to Cox Communications for $4.5 billion, steadfastly declined to provide burn rates or his startup's post-money valuation. Now, he's counting on his previous success in the cable sector to replicate itself in the online space.

FUNDING DETAILS: -- Location: Austin, TX; Funding: $45 million; Prior funding: $13 million; Round: 2nd; Lead investor: Adelphia Communications; Other investors: Charter Communications, Comcast, Cox Communications, Shaw Communications, Cabelvision Systems, Rogers Communications, Catalyst Investors, Advance-NewHouse, Coditel, BMO Halyard Capital Fund, Greenspun Family, CIT, New Prime Ventures. --Richard Reilly

MONDOSOFT http://www.mondosoft.comCopenhagen, Denmark; New York FUNDING: $3.6M PRIOR FUNDING: $13.7M ROUND: 3rd CATEGORY: Internet DESCRIPTION: Web site-centric search engine. LEAD INVESTOR: Gilde Investment OTHER INVESTORS: DICO; Vertex; Danish Venture Finance; the KP Insurance Company THE HERRING TAKE: Despite its head-to-head rivalry with Inktomi and Interwoven, Mondosoft is making a go of it. The two-year-old Danish startup has built a comprehensive search tool that operates solely within the confines of Web sites. Saying that Mondosoft, upon receiving a query, offers more than just a long list of sites, CEO Laust Sondergaard boasts his application provides users with a structured, categorized search vehicle that his rivals can only hope to match. Microsoft is a customer and is using the search engine for its Commerce Server 2000 Web site. Other clients include Random House, Bank of America, The Washington Times, and around 1,497 others. Seeing the Danish market as too limited, Mondosoft is looking to aggressively expand in the U.S. and has opened an office in New York City. Mr. Sondergaard sees profitability arising soon, by November. He's burning around $400,000 a month with Mondosoft's post-money valuation set at around $40 million. --R.B.R.

BRIX NETWORKShttp://www.brixnet.comChelmsford, MAFUNDING: $22MPRIOR FUNDING: $25MROUND: 3rdCATEGORY: Network managementDESCRIPTION: Provides service level agreement (SLA) monitoring and measurement software for network operators. LEAD INVESTOR: Fidelity VenturesOTHER INVESTORS: Partech International; STAR Ventures; Charles River Ventures; ComVenturesTHE HERRING TAKE: At a time when capital-expenditure budgets are being slashed, CEO Tom Pincince figures he's "relatively safe." His company provides software and hardware for monitoring the performance and service level agreement (SLAs) on data-centric telecommunications networks. Using the technology, a carrier can monitor the performance of data services such as voice-over-IP (VoIP), virtual private network (VPN) connections, and Web site performance. That enables telcos to offer tiered pricing agreements for services based on quality, rather than less-lucrative flat rates. By offering more revenue to carriers, Brix Networks's software has a better chance of weathering the storm, Mr. Pincince says. The company has six customers including Level 3 Communications and E-deltacom. Another nine carriers are testing its technology. Potential competitors include Micromuse and Agilent Technologies. The post-money valuation for this round is up slightly from $102.9 million. With 100 employees, the company's burn rate is under $2 million per month. The new round should bring the firm to profitability sometime next year. Mr. Pincince will be "sniffing" around the IPO markets in the fall of 2002. --S.S.

SMARTSYNCHhttp://www.smartsynch.comJackson, MSFUNDING: $22.5MPRIOR FUNDING: $8MROUND: 2ndCATEGORY: SoftwareDESCRIPTION: Develops wireless hardware, software, and services for the energy and utility market.LEAD INVESTOR: Beacon Group Energy Funds (an affiliate of JP Morgan Partners)OTHER INVESTORS: Nth Power Technologies; Cinergy Ventures; Exelon Capital Partners; JPMorgan Partners; prior investors Kinetic Ventures and Siemens Venture CapitalTHE HERRING TAKE: In the heart of Mississippi, SmartSynch is sitting pretty, between wireless carriers in search of new applications and demand from utilities for new infrastructure. The company, founded in 1998, recently closed this up round in just three-and-a-half months, thanks to interest from energy-focused VC funds and the venture arms of several utility companies. SmartSynch's intelligent client helps utilities monitor remote assets -- especially the meters of corporate and industrial customers -- via wireless networks and software. "The best way to start conserving energy is to be exposed to the volatility of the pricing," says CEO Mark Rogers. Once utilities can measure power use and pricing in real time, customers have a more tangible incentive to power down. Mr. Rogers says SmartSynch customers -- including N/Star (formerly Boston Edison), Pennsylvania Power & Light, and Potomac Electric and Power Company (PEPCO) -- are reducing operating costs and feeding current data into their billing systems. --J.L.

TERRACE MOUNTAIN SYSTEMShttp://www.tmountain.comAustin, TXFUNDING: $1.5MPRIOR FUNDING: $1MROUND: 2ndCATEGORY: Wireless applicationsDESCRIPTION: Develops software that allows the transparent exchange of information between disparate mobile devices.LEAD INVESTOR: Techxas VenturesOTHER INVESTORS: G-51 Capital; AV Labs; Convergent InvestorsTHE HERRING TAKE: With all the hype about Bluetooth, you'd think an electronic utopia is on the way -- where every PDA, cell phone, and laptop computer will communicate effortlessly with each other. But beaming business cards, calendars, and pictures between disparate devices is not as easy as it might seem. Though the wireless standard Bluetooth will make much of this possible, there remains the problem of conflicting file formats and operating systems on different devices. Terrace Mountain is dealing with it. The company develops software that allows the transparent exchange of information between disparate mobile devices. This software eliminates the need for hosting services, corporate servers, or additional companion software to standardize the information. The result: both Bluetooth users can exchange information directly with each other. Two to three customers are testing the product, founder and senior VP Becky Taylor says. Terrace Mountain's post-money valuation was up slightly from the last round at $5 million. With eight employees, the funding should last the firm until early next year. --S.S.

ATOGA http://www.atoga.comFremont, CA FUNDING: $50M PRIOR FUNDING: N/A ROUND: 2nd CATEGORY: Optical-networking equipment DESCRIPTION: Produces wavelength multipliers solutions for fiber-optic industry. LEAD INVESTOR: Institutional Venture Partners OTHER INVESTORS: Silicon Valley Internet Capital; Dresdner Group; NEA; Sequoia Capital; Mentmore Venture Partners; Crescent Private Capital; Amidzad MORE INFORMATION: Atoga

COAST SOFTWARE http://www.coast.comOttawa, OntarioFUNDING: $5M CDN ($3.25M)PRIOR FUNDING: N/A ROUND: 1st CATEGORY: Security DESCRIPTION: Web-testing management solutions LEAD INVESTOR: Bank of Montreal Capital OTHER INVESTORS: Capital Alliance Ventures; RoyNat Capital MORE INFORMATION: Coast Software

CORRELATION TECHNOLOGIES http://www.correlationtech.comVancouver, British ColumbiaFUNDING: $4M PRIOR FUNDING: N/A ROUND: 1st CATEGORY: B2B software DESCRIPTION: Web-based enabling solutions LEAD INVESTOR: Foundry Ventures OTHER INVESTORS: GrowthWorks Capital; Access Fund; BDC Venture Capital MORE INFORMATION: Correlation Technologies

TRANSCEPThttp://www.transcept.comManchester, NHFUNDING: $8.4MPRIOR FUNDING: $35M according to Venture EconomicsROUND: 3rdCATEGORY: Wireless equipmentDESCRIPTION: Develops RF distribution products for the wireless industry.LEAD INVESTOR: N/AOTHER INVESTORS: UndisclosedMORE INFORMATION: Businesswire

WISORhttp://www.wisor.comRockville, MDFUNDING: $10MPRIOR FUNDING: $11.5M according to Venture Economics ROUND: N/ACATEGORY: OSS (operation support systems)DESCRIPTION: Provides software to telecommunications carriers for service ordering and provisioning. LEAD INVESTOR: Science Applications International ($8M)OTHER INVESTORS: Undisclosed existing investors MORE INFORMATION: PRNewswire

CAMPSIX'S LAST BREATHAs reported last week in Dealflow (see "Dealflow: Campsix folds its tents"), San Francisco incubator Campsix has gasped its last breath. But those breaths were sweet, according to a source that saw Campsix's digs recently. Among the items left behind in the company's deserted offices is an oxygen bar, with masks hooked up to five different flavors, including mint and geranium. There are also leather chairs and a plasma screen TV left behind, reports the source. --J.L.

XPORTICAL, $1Mhttp://www.xportical.comKing of Prussia, PA THE PITCH: "The company is a wireless applications company that focuses upon tradeshow and published content marketplace. Through three proprietary wireless products, the company allows tradeshow organizers and exhibitors to interact closer with attendees, and track attendee interest and usage via activities on PDAs, WAP phones, and Blackberry pagers. This leads into converting published content into wireless format also available on pervasive devices. The company has raised $150K+ in seed round, and in the first quarter of 2001, booked $280,000 in actual revenue and $90,000 in bartered revenue. The fund-raising allows the company to finish one product, and hire in-house programmers, thus increasing margins." WHY WE LIKE IT: Some revenues already booked; high-margin events businesses can afford new technologies.WHAT THEY'RE UP AGAINST: Not the best market to be marketing to content and trade show businesses.CONTACT: Robert L. Robinson, Jr., founder and CEO, rlr@xportical.com

(Looking for funding? Drop us a line at elevator@redherring.com. Let us know who you are, how much you're seeking, the funding sources you're targeting, your contact info, and, of course, your pitch. Please keep the pitch to no more than 100 words. Do not send attachments. One tip: pretend you're actually pitching a VC in an elevator. Submissions should have "Seeking Funding" in the subject line.)

Today's Dealflow is reported and written by Julie Landry, Richard Byrne Reilly, and Steve Silverman. The Elevator Pitch is selected and written by Julie Landry.

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