Put It on My Tab
For the third time in the past year, CyberCash Inc. of Reston, Va., has turned to private investors to help fund future operations.
On July 15, the company completed a private placement of $15 million of convertible preferred stock with two unnamed investment funds. The same funds invested another $15 million in the company back in February. Another $15 million was raised by CyberCash last August as well from undisclosed investors.
Never mind that the Nasdaq-traded company, which has developed next-generation Internet credit cards and check books, has lost almost $22 million in the last 12 months on $5.5 million in sales. If cyber-shopping takes off this coming holiday season, the company finally may generate the momentum investors are looking for.
Speaking of investments, Torrent Networking Technologies, a Silver Spring, Md., creator of Internet routers, just closed its second round of venture capital financing July 20.
The company brought in $18.7 million from an investment team led by Donaldson, Lufkin & Jenrette's venture capital arm, Sprout Group. Smaller investors in the financing were Invesco Private Capital, Bayview Investors and Columbia ATM Investors.
The previous round of financing came in two waves, in August 1996 and August 1997. Company officials could not be reached for dollar figures on the first round.
When you are a small, privately held Internet start-up and you want a boost in recognition and business, how can you get your name out there without going public or launching a multimillion-dollar ad campaign? Find a $4.4 billion industry leader with 32,000 employees and offices around the world to push your product for you.
Such is the case with eFed, an Internet-based government procurement tool from Electric Press, Reston, last year. On July 15, Electric Press teamed with Science Applications International Corp., the San Diego-based government-contracting giant.
Under the agreement, SAIC will introduce eFed to its government customers and will help agencies install and integrate the service.
- Bob Starzynski
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