European Deals July 09

Rikkert van Erp Research Assistant Niels Valkering Head of Research

July 29, 2009

Vol. 9 Nr. 30

Deals in Europe Coverage Deals in Europe Data Service records venture capital investments in high-tech European and Israeli companies.

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Note: The figures in 2009 are based on the dates when Tornado Insider publishes the deals. The total deals also include investments with undisclosed amounts.

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Note: The figures in 2009 are based on the dates when Tornado Insider publishes the deals. In the ‘Deal Activity Monitor’ graph, the total number of deals includes investments with undisclosed amounts, which are not added to the € invested total. In the two ‘Capital Invested’ graphs, the undisclosed deals are not included.

Company Country Sector Amount Round Investors

Delphic Diagnostics UK Diagnostics €980,000 Further MMC Ventures, The Capital Fund

Delphic looks further than HIV UK Delphic Diagnostics markets HIV viral resistance testing. The company has raised €980,000 from existing investors MMC Ventures and The Capital Fund. The proceeds will support the transition of the company from its position as an established provider of specialist diagnostic services in HIV and hepatitis into a sector leader able to address the growing market for adaptive trials and personalized medicine across a range of therapy areas. In addition the company has appointed Alun Williams as CEO. He succeeds Tim Leaver who will become a non-executive director.

The company has built a portfolio of tests around pharmacology and genetics and is in the process of developing a new bioinformatics-based product. It offers an integrated diagnostics and biomarker service in HIV and is now applying that model in hepatitis. Delphic Diagnostics has particular expertise in infectious diseases, including capabilities in study design and in method development and transfer, and a growing clinical trials portfolio.

Company Country Sector Amount Round Investors

SP Solution Pool Germany Medical devices €500,000 Seed High-Tech Gründerfonds

SP Solution Pool wins €500,000

Company Country Sector Amount Round Investors

Zyoxel UK Biotechnology €1.3 million Seed CN Innovations, Oxford University

First Chinese investment in an Oxford spinout

SP Solution Pool, a German provider of software solutions for computer-aided surgery and dental implantology, has received €500,000 in seed funding from High-Tech Gründerfonds.

The proceeds allow the company to hire an expert sales team to spread its ready-to-market product. The company’s medical navigation systems support surgeons during operation.

Zyoxel, a UK company commercializing microbioreactor technology to improve drug discovery and stem cell culture, has secured a €1.2 million investment from Hong Kong multinational CN Innovations Holdings. The company also received a €120,000 investment from the Oxford University Challenge Seed fund. In addition to marking the first time a Chinese investor has provided funding for a new Oxford spinout, Zhanfeng Cui from Oxford’s Institute of Biomedical Engineering, one of the founding inventors, is the first Chinese person to be appointed to a chair by Oxford.

The spinout from Isis Innovation, University of Oxford’s technology transfer company, is estimated to be able to reduce the average cost of drug development by at least 10%, improving accuracy and time-to-market. This also implicates that the Zyoxel technology has the potential to reduce the amount of animal testing worldwide by around 10% per year. The company is now developing partnerships with pharmaceutical companies and anticipates that the first product sales will take place within a year.

Company Country Sector Amount Round Investors

Fleuret France Other Computers & Electronics €900,000 Undisclosed OTC Asset Management

€900,000 for Fleuret Fleuret, a French company that designs and manufactures technical containers, has secured €900,000 from OTC Asset Management. Multeam assisted the company in its search for fresh funds.

The containers can be used to transport fragile equipment such as aeronautical, space and telecommunication equipment, military systems and measurement devices. It also offers solutions in defining and designing packaging. The company can handle the adjustment, depreciation and maintenance of the temperature, climate and nitrogen environment.

Company Country Sector Amount Round Investors

Proytecsa Spain Robotics Undisclosed Undisclosed Miura Private Equity

Proytecsa wins funding for security products Proytecsa, a Spanish supplier of technological products and solutions for the security industry, has secured funding from Miura Private Equity. The investor acquires a 60% stake in company. The three founders of Proytecsa maintain the remaining 40% of the company.

The investment allows the company to consolidate its status in Spain as well as develop the business at an international level.

The spin-off of Sallén Electrónica specializes in the design, development, production and marketing of security products, focusing on financial institutions, national security forces, ministries and private companies related to the security industry. Its main business lines include: security fencing for restricted access areas, explosive deactivation robots, security doors for financial institutions, subway access systems and security and surveillance systems.

Company Country Sector Amount Round Investors

Ladon Germany Agriculture related Undisclosed First Technologiegründer fonds Sachsen

Ladon secures first funding round

Company Country Sector Amount Round Investors

Frey France Energy related €19 million Undisclosed CDC Entreprises, NATIXIS, IRCAP, ILP, ISF funds

Frey Nouvelles Energies wins investment

Company Country Sector Amount Round Investors

GenDrive UK Energy related Undisclosed Undisclosed Business angels

Ladon, a German company providing energy saving LED-lightening systems, has secured its first funding round from SC-Kapitalbeteiligungsgesellschaft (Technologiegründerfonds Sachsen). The funding will be mostly used to finance research and development activities.

Dutch and German entrepreneurs founded the company in order to develop new ideas about the efficient use of energy. Today it offers made-to-measure solutions both for lighting systems supporting greenhouse production and hot water storage.

Frey Nouvelles Energies, a French company specializing in the production and development of renewable energy, has raised €19 million. Initially, the company carried out a capital increase and issuance of convertible bonds due for 2015 of €15 million. Four investors participated in this operation. CDC Entreprises and Natixis Environnement & Infrastructures each invested €7 million. Institut Régional de Champagne Ardenne Participation and Institut Lorrain de Participations each provided €500,000. To complete the €19 million, ISF funds provided for €4 million. The company seeks to reach a production of 265 MW in 2013 in the four sectors of renewable energy: wind, solar, biogas and biomass.

GenDrive attracts angel backing UK-based GenDrive has attracted an undisclosed investment from a syndicate of business angels. The proceeds will fund the development of its TOTUS inverter that allows for any type of renewable energy device to be connected to the electricity network. TOTUS can connect any type of renewable energy device to the grid and even to a combination of devices.

Company Country Sector Amount Round Investors

Metallkraft Norway Energy related Undisclosed Further Capricorn Venture Partners

Fresh funds for Metallkraft Metallkraft has received fresh funds from Capricorn Cleantech Fund. The VC doubled its investment - from December last year - in the Norwegian slurry recycling company by acquiring an additional 500,000 newly issued shares. The deal increased Capricorn’s ownership in Metallkraft to 7%.

The wafer cutting process in the production of silicon solar modules requires large amounts of cutting slurry. This slurry consists of silicon carbide particles and glycol, which is quickly polluted during the cutting process by silicon dust, metal particles from the saw wire and water. Metallkraft has developed technology to recycle the spent slurry and return all pollutants into commercially interesting products. This technology promises 100% recycling without adding any chemicals. The recycled slurry can be re-used as it retains its cutting abilities, and is much cheaper than fresh slurry.

Company Country Sector Amount Round Investors

INDOM France Internet services 15 % Undisclosed AXA Private Equity

AXA Private Equity takes an equity stake in INDOM INDOM, a French domain name operator, has received an investment from AXA Private Equity in return for 15% of the stakes. The majority shareholders are still the company’s founders. The investment will put the company on a long-term footing and will consolidate its position in France.

The registrar for businesses offers a complete range of services with a view to optimizing, administering and securing domain names. INDOM provides clients its specialized services across the full Internet domain name value chain, covering consulting, search and filing, administrative management and technical services.

Company Country Sector Amount Round Investors

Phase Focus UK Nanotechnology €410,000 Undisclosed South Yorkshire Investment Fund, Viking Fund, White Rose Technology Seedcorn Fund, Fusion IP

Focus on virtual lens Phase Focus raised €410,000 for further development of the Phase Focus Virtual Lens.

South Yorkshire Investment Fund (SYIF) led the round. Existing investors Fusion IP, the University of Sheffield IP commercialization company, the White Rose Technology Seedcorn Fund, and the Viking Fund joined SYIF in this investment. In addition, the company received a €120,000 grant for research and development from Yorkshire Forward. This new investment together with the grant are expected to allow the company to demonstrate additional optical applications, further develop the technology at other wavelengths, and initiate its commercial marketing plan in collaboration with strategic business partners.

The company’s Phase Focus Virtual Lens eliminates the need for high-quality lenses in microscopy and imaging by transferring the image-producing step to a computer program.

The innovation is expected to revolutionize microscopy by not only eliminating the restrictions and performance limitations of today’s conventional focusing devices, but also by enabling a range of new capabilities including post-acquisition focusing and high-contrast stain-free imaging. The Virtual Lens has been demonstrated in all three of the company’s initially targeted wavelength regimes (optical, electron and X-ray microscopy,) and optical microscopy applications are being developed in collaboration with end-users.

Company Country Sector Amount Round Investors

Konbini France Broadcast €3 million Second Aurel NextStage

Konbini provides original video content Konbini, a French company aiming to reinvent TV by providing new programs made by famous and trendy producers and staff, has received €3 million from NextStage. The funding will allow the company to consolidate its position as developer of original video content on the digital media market. Chausson Finance has consulted Konbini on this second round.

Its programs will be distributed through the www.konbini.com community, offering entertainment for viewers and advertisement space for brands. In September the company will launch its second season.

Company Country Sector Amount Round Investors

Company Country Sector Amount Round Investors

ReCoTech Germany Business applications €500,000 Seed High-Tech Gründerfonds

ReCoTech starts with €500,000

Passpack Italy Security €74,000 Security Zernike Meta Ventures

Passpack passes Zernike test

Company Country Sector Amount Round Investors

Prezi Hungary Other Software Undisclosed Undisclosed Sunstone Capital, TEDGlobal

Company Country Sector

kinkon Germany Consumer applications €750,000 First Undisclosed investors

Amount Round Investors

High-Tech Gründerfonds has made an investment in Germany-based ReCoTech. The company is developing software for the optimization of allocating office real estate. Proceeds will be used to further develop the company’s technology. It offers services that enable strategic space optimization.

Passpack, an Italian online-password manager, has received a €74,000 follow-on investment from Zernike Meta Ventures. The funds will be used for continued product development, infrastructure, marketing and more and better content.

The company develops password management software-as-a-service. The company’s solution secures passwords and account information for Internet users.

Sunstone and TED have funded Prezi Sunstone Capital and TEDGlobal, a global conference company on technology, entertainment and design, have invested in Prezi in order to speed up the company’s development. Prezi is developing an online visualization and storytelling tool that intends to change the way people present information.

€750,000 in funding for new safe-surfing browser kinkon, a German developing a safe-surfing browser, has secured its first financing round of €750,000 from undisclosed investors. In addition the company has added Helge Brzoska (former head of marketing at PR brox IT-Solutions) as its new marketing and communications director and Björn Snoek as CTO. The company develops a browser and operating system available on its kinkon.de platform.

It offers a safe surfing and communication space for families with children.

Company Country Sector Amount Round Investors

Civolution The Netherlands Security Undisclosed Further Prime Technology Ventures

Civolution builds on position in market Civolution, a Dutch technology and services provider for identifying, managing and monetizing media content, has received a further investment from existing backer Prime Technology Ventures (PTV). The investment enables the acquirement of the Software & Technology Solutions watermarking business from Thomson. With this acquisition Civolution will be able to offer a broader and richer portfolio of content identification and tracking technologies to enhance its current technologies, products and services. Thomson will now become a shareholder in Civolution. PTV has committed to provide the necessary funding, endorsing the company’s strategy to build further on its position as a leader in content identification technology and services in the media industry.

The Philips spin-off offers watermarking and fingerprinting technology solutions for forensic tracking of media assets in pre-release, digital cinema, pay-TV and online. Through its Teletrax and Mediahedge service portfolio Civolution offers broadcast and Internet tracking services.

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