Commonwealth Capital Ventures
Fall 2009 | Commonwealth Capital Ventures Newsletter

Greetings!
 
Welcome to the latest edition of the Commonwealth Capital Ventures Newsletter. As we enter the fall season, we would like to update you on our progress over the past few months. We completed a new investment in CloudSwitch, while our existing portfolio has been making news through acquisitions, new product announcements, and partnerships. You will find more details on these developments below.
 
Despite the uncertain economic landscape, we continue to take pride in patiently backing companies that will create long-term value. If you have a company or an idea that you believe is poised for long-term success, we encourage you to come in and talk with us to see if we can be a good partner as you grow your business.


All the best,

The Commonwealth Capital Ventures Team
New Investments
CloudSwitchCloudSwitch: Commonwealth led an $8M Series B round of funding for Cloudswitch, a Burlington, Mass.-based company that is providing an innovative software appliance that empowers enterprises to tap into the benefits of cloud computing by allowing legacy applications to run in the cloud seamlessly and without modification, thus reducing cost and improving responsiveness. Joining CloudSwitch as CEO is former Commonwealth Entrepreneur in Residence John McEleney. Previously, John was the CEO of SolidWorks Corporation. Existing investors Matrix Partners and Atlas Venture also participated in the round. Commonwealth General Partner Elliot Katzman has joined the board of directors.                
Click Here for the Press Release

Nova ScientificNova Scientific: Commonwealth's portfolio company, Nova Scientific Inc. (Woburn, MA) through its subsidiary, Nova Metrix, raised $13 million of new equity in September and acquired Durham Geo Enterprises (DGSI) headquartered in Stone Mountain, GA.  DGSI is the leading manufacturer and supplier of geotechnical material testing and ground water instrumentation, which  is used by civil and environmental construction companies, consulting engineers and scientists to measure, test and manage such things as tilt, displacement, pressure and strain in soil, rock, concrete and steel structures.  Nova Scientific is focused on consolidating various segments of the highly fragmented industrial and scientific instrumentation markets.  Commonwealth's investment was made in conjunction with co-investors Battery Ventures and Ascent Venture Partners.
Liquidity Events
OunceOunce Labs: In July, IBM announced that it acquired Ounce Labs. IBM will integrate Ounce's software, which helps companies reduce the risks and costs associated with security and compliance concerns, into its Rational software business. The acquisition further enhances IBM's overall security offering strategy.
Click Here for the Press Release

BBN TechnologiesBBN Technologies: In September, Raytheon Company entered into an agreement to acquire BBN Technologies. The transaction is expected to close in the fourth quarter of 2009. The acquisition will align BBN's deep scientific and engineering expertise with Raytheon's commitment to excellence and innovation in defense, homeland security, and other government markets throughout the world. Following the acquisition, BBN Technologies will become part of Raytheon Network Centric Systems (NCS).
Click Here for the Press Release
Portfolio Company News
Reval LogoReval, a leading SaaS treasury software provider to the Fortune 1000, announced in August that it has acquired FXpress Corporation, a smaller competitor. The acquisition solidifies Reval's position as the leader in global derivative risk management and hedge accounting software solutions and services for corporate end-users of interest rate, foreign exchange, commodity and credit derivatives. Additionally, Reval closed $16 million in venture capital funding from Commonwealth and North Bridge Venture Partners, bringing funding from both venture capital firms to $44 million.

Antenna Software LogoAntenna Software in June announced it had completed the acquisition of Bothell, Wash.-based Dexterra. The move represents the coming together of two leading providers of mobile enterprise technology and applications. With extensive operations throughout the Americas, Europe and Asia Pacific, which support a vast network of global partners including Accenture, ErgoGroup, Mincom and IBM, Dexterra brings Antenna a stronger global presence, a proven channel-enablement strategy and established reseller channels.

OneRiotOneRiot in June launched its real-time web search API, allowing third-party developers to incorporate real-time web search results into their applications. In August, Commonwealth co-led a $7M Series C investment in OneRiot, joining fellow existing investors Appian Ventures and Spark Capital. OneRiot has gained extensive attention from publications and media outlets including CNN, the New York Times, the Wall Street Journal, Reuters, VentureBeat, TechCrunch, and PC Magazine, among others. (Click here for links to these stories.)
Partner Viewpoints
In recent activities, Commonwealth partner, Mike Fitzgerald, was featured in articles appearing in ZDNet and e-Commerce Times,  where he weighed in on SaaS issues and on starting technology businesses. Additionally, Elliot Katzman served as a judge at the June 16th Massachusetts Innovation & Technology Exchange (MITX) Awards.

VC Perspective: Can Enterprise Software Companies Do SaaS?
Blog post from Michael Krigsman ZDNet, May 27, 2009
 
Waltham, MA -- Recent discussions questioned the impact of established enterprise software companies in the software as a service (SaaS) market. Therefore, I decided to seek the views of an experienced venture capitalist, who is actively investing in SaaS, for another perspective. Mike Fitzgerald, founder and Managing General Partner of Commonwealth Capital Ventures, has been around the VC block quite a few times. His firm's conference room is lined with mementos of companies in which it has invested, including Aberdeen Group, Akibia, Centra Software, Compete, Constant Contact, Direct Hit, i-Logix, Tally Systems, Zoom Information, and many others.
 
I asked Mike whether he thought enterprise companies, such as Oracle, IBM, and SAP, could be successful selling SaaS software.
Read Full Text of the Post


Mike Fitzgerald Quoted in e-Commerce Times article
"So You Want to Start a Tech Business"
 
June 24, 2009 - Boston, MA -- Funny thing about economic disasters: They tend to spawn a bevy of new businesses. It's not that a recession is the best time for pie-in-the-sky thinking; rather, it's when pie-in-the-mouth issues become most pressing.
 
This is tricky business, finding the money. Seems the green stuff has slipped from nearly everyone's grasp.
 
"Risk capital is scarcer than it has been in a long time," Mike Fitzgerald, founding partner of Commonwealth Capital Ventures, told the E-Commerce Times. "Venture funds will husband their cash for their existing portfolios making new deal funding tougher."
Read Full Text of the Article


Elliot Katzman served as a judge at the June 16th Massachusetts Innovation & Technology Exchange (MITX) Awards. The awards recognize innovative technologies developed in the New England area, as well as the individuals and organizations responsible for driving these advancements.
Click here to Read More

Contact Information:
Commonwealth Capital Ventures
Bay Colony Corporate Ctr.
950 Winter Street
Suite 4100
Waltham, MA 02451
LP Portal | Press | Careers
In This Issue
Fall 2009 Newsletter
New Investments
Partner Viewpoints
Featured Article
Commonwealth Capital Ventures is a leading venture capital firm focused on software & services, Internet & digital media, communications & wireless, and instruments & systems investments. Since its inception in 1995, the firm has invested in roughly 140 high-growth companies. Commonwealth currently manages more than $580 million of committed capital across four funds. To learn more about our team, click here.
Team
General Partners
Michael T. Fitzgerald Michael T. Fitzgerald
Jeffrey M. Hurst Jeffrey M. Hurst
Elliot M. Katzman Elliot M. Katzman
Elliot M. Katzman Stephen McCormack
Justin Perreault Justin Perreault
Principals
Stephen J. Hallowell Stephen J. Hallowell
Associates
Casey Gibbons Casey Gibbons
Joel Rodriguez Joel Rodriguez
Finance & Operations
Brian D. Annese Brian D. Annese
Cheryl A. Kerrigan Cheryl A. Kerrigan
Teresa Anavi Teresa Anavi
Sharon T. Cerutti Sharon T. Cerutti
Constant Contact

We developed this newsletter using a web-based application from Constant Contact, a Commonwealth Capital Ventures portfolio company.

To easily create, deliver, and manage email marketing campaigns, visit the Constant Contact website for a free trial.