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Charlotte-based Tree.com buying Kentucky’s SurePoint Lending

Tuesday, November 16th, 2010

Tree logoCHARLOTTE, NC – Tree.com, Inc. (Nasdaq: TREE), the parent company of LendingTree, has agreed to acquire Louisville, KY-based SurePoint Lending, the business name of First Residential Mortgage Network Inc. in a deal worth up to $23 million.

Tree.com will pay SurePoint shareholders an aggregate purchase price of $6 million in cash and contingent consideration up to an aggregate additional $17 million pursuant to earn out provisions over the next three years.

A LendingTree network lender for 11 years, SurePoint has originated more than $10 billion in closed loans since inception and was named the number one refinance lender on the LendingTree network in 2009. Headquartered in Louisville, SurePoint has nearly 500 employees, including more than 300 licensed loan officers, and operates branch locations in Nashville, TN, Tampa, FL, and Indianapolis, IN.

Provisional patent applications: benefits and filing considerations

Friday, November 12th, 2010

By R. Brian Drozd, Moore & Van Allen

Brian Drodz

Brian Drozd

Many companies, especially companies trying to save money, file provisional patent applications to protect inventions. Provisional patent applications differ from regular patents applications because they do not mature into an actual patent unless a patent application (commonly referred to as a “non-provisional” application) is filed within one year claiming priority to the provisional application.

Benefits:
First, the U.S. Patent and Trademark Office (“PTO”) filing fee of a provisional application is relatively low: only $110 for a small entity (i.e. a company with less than 500 employees) or $220 for a large entity. The PTO filing fees for a non-provisional application generally range between $450 and $2,000 (depending on the size of your company and claims made in your application).

Second, the requirements for a provisional application are much easier to meet than a regular patent application. In order to obtain a filing date, all that is needed in a provisional application is a coversheet, the PTO filing fee and a specification. Accordingly, preparation and filing of a provisional application is a simple and quick process for patent attorneys, which greatly reduce attorney’s fees.

Third, the filing of a provisional application affords patent protection for an added year before filing a non-provisional application, effectively extending the normal 20 year patent term to 21 years.

Fourth, the filing of a provisional application can be used to satisfy the U.S. requirement that a patent application must be filed within one year of publication, first public use or offer for sale of an invention.  Thus, if one of these activities is imminent, then filing a provisional application is the typical way to go since there is not much time to prepare and file a non-provisional application.

Fifth, the filing of a provisional application enables the applicant to claim patent pending status on its products.

Sixth, the timely filing of a provisional application preserves U.S. and foreign patent filing rights.

Considerations:
In order to retain the priority benefit of the filing date of a provisional application, a regular non-provisional patent application (and if foreign rights are contemplated, any foreign applications) must be filed within one year of the filing of the provisional application and must claim priority based on the provisional patent application.

It is also important to keep in mind that provisional applications are generally held confidential by the PTO, which many companies prefer due to the sensitive nature of the subject matter.  However if the applicant decides to file foreign patent applications claiming priority to the provisional application, the provisional application will be published 18 months from the filing date of the provisional application.  Likewise, once a U.S. non-provisional application (claiming priority to the provisional application) has been pending for 12 months or has issued, the provisional application will be published.

As another filing consideration, filing a provisional application delays when examination will commence, effectively delaying when the patent will eventually issue.  Some companies view this as a negative if their technology is quickly-changing, such as software, cell phones, etc.  Quickly-issued patents are key to protecting technology that is changing rapidly in the marketplace. On the other hand, some companies actually prefer to have a patent pending as long as possible so that potential infringers will not immediately know how broad the issued patent will eventually be and so the potential infringers cannot actively design around a patent application since the patent claims have yet to issue.

Another filing consideration is litigation, as provisional applications are discoverable during a lawsuit.   This makes provisional applications a potential litigation exposure because it is possible to attack the scope of an issued patent based on the differences in language between the provisional application and the non-provisional application. Many conclude that a non-provisional application should have the exact same language as the provisional application and, at that point, it may be better in the long run to file the non-provisional application rather than the provisional application.

In conclusion, the decision regarding filing a provisional application will be based on costs, timing and confidentiality of the invention. Additionally, a company should take into account non-patent business factors that are normally associated with putting a new product on the market.

Brian Drozd is an associate in the Charlotte office of Moore & Van Allen. Mr. Drozd concentrates his practice in intellectual property with a focus on patent preparation and prosecution.

Tampa-based Tribridge closes growth financing

Friday, November 5th, 2010

TribridgeTAMPA, FL – Tribridge, a national IT services and business consultancy based in Tampa, has raised growth capital from private equity firm from LLR Partners. The amount of the investment was not disclosed.

Focus, a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, arranged the transaction.

Tony DiBenedetto, chairman and CEO of Tribridge was the winner of the Ernst & Young 2009 Florida Entrepreneur of the Year Award in technology.

Founded in 1998, Tribridge is a national IT services and business consultancy dedicated to helping customers become more productive, profitable, competitive and secure.  From software selection and implementation to infrastructure design and support, Tribridge sells both on-premise and cloud computing solutions for CRM, ERP, web portals and other core business systems.

Tribridge has more than 2,000 customers throughout the United States and was named the Worldwide Microsoft Dynamics Partner of the Year in both 2008 and 2010. The company has offices throughout the US, including in Atlanta, Orlando, Miami, and Charlotte in the Southeast.

“Tribridge is a natural fit for LLR Partners. Because of their past investment history, LLR Partners is very familiar with IT services companies,” said Manan Shah, partner and co-leader of the Software and IT Services Group at FOCUS. “Their strategic partnership will provide the necessary human capital and financial capital to continue Tribridge’s acquisition program.”

We’ll keep an eye on the US Securities and Exchange Commission filings for the amount of the investment.

Hosted Solutions selling to Winstream for $310M

Thursday, November 4th, 2010

Hosted SolutionsRALEIGH, NC – Arkansas-based Windstream Corp. (Nasdaq:WIN) is buying Raleigh-based Hosted Solutions in an all cash deal worth $310 million.

Hosted Solutions is a regional data center and managed hosting provider focused on enterprise-class Infrastructure as a Service solutions (managed hosting, managed services, colocation, cloud computing and bandwidth) for small and medium-sized business customers as well as large enterprises.

The company serves more than 600 customers and has approximately 125 employees. It was acquired by PE firm ABRY in 2008 fro $140 million.

The acquisition of Hosted Solutions will transform Windstream’s data center business, increasing the scale and scope by adding five state-of-the-art SAS 70 Type II certified data centers in Raleigh, N.C.; Charlotte, N.C., and Boston with a total of 68,000 square feet of data center capacity. As a result, Windstream will have a combined total of 12 data centers across the country.

The boards of both companies have approved the transaction, which is expected to close in the fourth quarter of 2010, subject to certain conditions, including necessary regulatory approvals.

According to reports, Hosted Solutions CEO Rich Lee will not remain with Windstream after the deal closes.

Kip Turco, COO at Hosted Solutions, will head Windstream’s data center business. Hosted data center operations team will remain in Raleigh.

Data centers have been a hot commodity in the Southeast. Peak 10, a North Carolina-based rival of Hosted Solutions, sold a majority stake to

Welsh, Carson, Anderson & Stowe earlier this year and closed on a $155 million credit facility as well.

Rollcast Energy closes $203M financing for NC biomass project

Monday, October 25th, 2010

Rollcast Energy, wheat

Biomass from plants is a source of clean energy

CHARLOTTE, NC & BARNSVILLE, GA – Rollcast Energy Inc. has closed project financing for Piedmont Green Power,  its first greenfield biomass power project.

The terms of the financing include an $82 million construction and term loan and a $51 million bridge loan related to the treasury grant.  In addition, Atlantic Power Corporation, which owns approximately 60 percent of Rollcast, will provide the equity for the project, making an equity contribution of approximately $75 million for substantially all of the equity interests in the Project.

Zachry, the Project’s EPC contractor, will be released to begin construction immediately and Rollcast expects the project to be operational by the fourth quarter of 2012.  Delta Power Services, a subsidiary of Babcock & Wilcox, will provide operations and maintenance services and an affiliate of Rollcast will be the Project’s asset manager.  The power from the project will be sold to Georgia Power under a long-term power purchase agreement.

Piedmont Green Power is a 53.5 MW biomass plant located in Barnesville, GA, approximately 70 miles southeast of Atlanta.  The Project was developed and will be managed by Rollcast.  Construction of the Project is expected to generate more than 300 jobs and, once completed, will provide 27 full-time jobs during operation.  The Project will utilize 500,000 tons of woody biomass annually, 100 percent of which will come from the local region.

With biomass energy projects starting to come online, we should start getting a better idea of how they will fit into the US energy mix soon. Georgia and North Caroina, with their abundant biomass availability, have been particularly active in developing biomass energy projects.

Charlotte-based Edge Health Initiatives injects $900K of $2M raise

Thursday, October 21st, 2010

Dorothy Hamill

Olympic athlete Dorothy Hamill is featured on the Edge Health web site

CHARLOTTE, NC – Edge Health Initiatives, a health-care marketer, has reaised $900,000 of a $2 million debt and securities offering, according to a regulatory filing.

The company, founded in 2009, used celebrity focused platforms to market companies and brands.

Clients include Merck Oncology, Philosophy Cosmetics, J.C. Penny, and Wachovia.

Edge Health’s multimedia marketing programs include singers Rihanna, Cyndi Lauper, Rascal Flatts, Natalie Cole and Olivia Newton-John, and Olympic athletes Dorothy Hamill, Scott Hamilton, Tanith Belbin, Ben Agosto, and Shannon Miller.

It is a sister company to Edge Entertainment, a marketing and production firm that specializes in entertainment and sports specials for broadcast, and Olympic sport arena tours.

Email TJS editor/writer Allan Maurer: Allan at Techjournalsouth dot com.

Siemens Energy creating 139 jobs in NC expansion

Friday, October 15th, 2010

SiemensRALEIGH, NC – Siemens Energy will create 139 new jobs and invest $2.9 million in an expansion of its smart grid project in Wake County, NC.

The company will receive up to $2.6 million in NC tax incentives if it meets job creation goals.

Siemens says the new jobs will averagee $88,882 a year plus benefits.The company currently employs 262 people at its Wendell, NC Power Distribution and Transmission facility.

Dave Pacyna, general manager of Siemens Energy’s North American Transmission and Distribution said, “Over the next four years, we will expand to serve the substantial infrastructure investment in the power grid, especially in making the grid smarter to increase the reliability and efficiency of America’s electricity supply.

“North Carolina provides a great business climate from which we can continue to serve our customers, and we appreciate the steady support we’ve gotten from the state’s leaders for this project and others.”

Siemens said earlier this year that it will add more than 800 jobs to its Charlotte operations as well.

North Carolina is ranked fourth in the nation for job creation despite its 9.7 percent unemployment rate. It’s some world we live in when getting unemployment down to 9.7 percent is considered positive, but some states, such as Nevada, which has the highest unemployment rate in the nation at around 15 percent, are faring much worse.

We have seen recent figures that suggest the unemployment rate for college graduates is much lower than those averages and is under 4 percent.

Acumen IT expanding, hiring for offices in SC, GA, NC

Thursday, October 7th, 2010

AcumenGREENVILLE, SC – Acumen IT says it plans ot hire more than ten new employees over the next 18 to 24 months.

Most of the full-time positions will be in the Greenville, SC area at Acumen IT’s Corporate Headquarters. However, some will be located in regional offices in Charlotte, Atlanta and Charleston.

As a direct request from many of Acumen IT’s clients, the company will also be expanding its Help Desk in order to provide live, native English-speaking representatives from 7am to 9pm daily. These expanded hours will provide more flexibility for assistance to early morning callers and east-coast companies with satellite offices throughout the United States and Canada.

Acumen IT is one of the largest technology companies in the Upstate and Carolinas, providing industry-leading IT Managed Services, Data Storage Solutions and Business Applications for companies of all sizes. As a Microsoft Gold Certified Partner, the company is a Microsoft Partner with the highest level of competence and expertise with Microsoft technologies. Acumen IT has also been named to the 2010 Microsoft Dynamics President’s Club.

Acumen IT will be looking to hire positions in the following areas:

Help Desk Support

Inside Sales and Lead Generation

Customer Service Representative

IT Engineers

Dynamics GP Consultants.

For more information on Acumen IT or on these new positions, please visit our website at www.AcumenIT.com or contact David Pence at 864-271-9000

Charlotte-based Adaptivity blueprints $7.2M first round

Tuesday, October 5th, 2010

AdaptivityCHARLOTTE, NC -Adaptivity, The IT Blueprint Company, which provides an intelligent IT blueprinting software suite to help companies manage and optimize enterprise technology infrastructure, has raised a $7.2 million round of venture capital financing.

The Series A round, which is the company’s first institutional financing, was co-led by Noro-Moseley Partners and Intersouth Partners. The funding will be used to accelerate product development on Adaptivity’s Blueprint 4IT Lifecycle Suite and build out sales and marketing infrastructure to support growing market demand.

Katrin Burt of Intersouth Partners and Mike Elliott of Noro-Moseley will join the company’s Board. Additionally, George Mackie, a venture partner with Noro-Moseley with 25 years of experience in the technology industry, will join Adaptivity as non-executive chairman working closely with the executive management team.

Adaptivity’s technology platform allows companies to create IT blueprints tailored for specific audiences and is used to make informed, data-driven intelligent design, build, and runtime decisions in managing complex enterprise infrastructure environments.

Adaptivity says its patented approach to dynamically generating IT blueprints enables clients to control and manage all facets of the infrastructure lifecycle.

“Adaptivity’s tools are completely unique in the market,” said Elliott, managing partner of Noro-Moseley. “More importantly, they’re delivering exactly what enterprise IT needs, providing cost benefits, time-to-market benefits and a unique ability to link business processes to IT, thereby providing a path to infrastructure optimization that’s not possible otherwise.”

“Business demand and IT supply have to be modeled on a continuous basis in order to be effective,” said Tony Bishop, President and CEO of Adaptivity. “Our technology creates a unique value proposition for our clients and partners in terms of speed and quality of execution.

“Our ‘living blueprint’ not only allows an enterprise to have an intelligent, business-aligned IT design, it provides a repository of institutional knowledge that can be consistently leveraged in response to changing IT business demand. Our blueprints create an environment of trust around the key information needed to make IT decisions.”

PureLux turns on $1M of $2M raise for next gen lights

Thursday, September 16th, 2010

PureLuxCHARLOTTE, NC  - PureLux Inc., a company selling next generation light sources more efficient than incandescents and fluorescents, has raised $1 million of a $2 million equity raise, according to a regulatory filing.

Investors include Wake Forest University and NanoHoldings of Rowayton, CT. PureLux previously received $100,000 from the NC Green Business Fund in 2009.

The company is a spin-out  from the Center for Nanotechnology and Molecular Materials at Wake Forest University in Winston-Salem, NC.

PureLux is using nano-composite polymer films that surpasses the efficiency of commonly installed lighting devices.

 Unlike incandescent and fluorescent lights, which lose a significant amount of energy to heat, PureLux lighting is extremely efficient in converting energy directly to light.

 PureLux is already 10 times more efficient than incandescent bulbs and 3 times more efficient than common fluorescent bulbs.

The company’s initial product will be a thin-film, plug-compatible replacement for common fluorescent fixtures that not only reduces energy consumption but also produces light of improved color, warmth and appearance.

This new lighting system will be compatible with current electrical circuitry in offices, homes, factories and other facilities.

It disclosed the raise in a filing with the US Securities and Exchange Commission.

We didn’t find a Web site for the firm.

Private equity firm, management acquire majority stake in Peak 10

Thursday, September 2nd, 2010

Peak 10CHARLOTTE, NC – Welsh Carson, Anderson & Stowe, a private equity firm, and Peak 10′s executive management have acquired a majority stake in the company. Financial details were not disclosed.

Selling shareholders include majority owner Seaport Capital, a New York-based private equity firm and McCarthy Capital, an Omaha, Neb.-based private equity fund.

Peak 10’s existing management team, led by Co-Founder, President and CEO David Jones will continue to operate the business.

Jones said,  “Our partnership with Welsh Carson enables Peak 10 to continue increasing the scale of our business to meet the high demand for data center infrastructure and related managed services. Our strategic focus remains intact but our resources now position us to more rapidly extend our geographic footprint, strengthen our team and further accelerate our managed services and cloud offerings.”

Peak 10 has managed a path of steady and consistent growth achieved through expansion in the greenfield markets of Jacksonville, FL.; Charlotte, NC.; Tampa, FL. and Raleigh, NC, and through acquisitions of established data center companies in Louisville, KY; Nashville, TN.; Richmond, VA and, most recently, Fort Lauderdale, FL.

In 2007 and early 2008, Peak 10 opened greenfield data centers in Atlanta, Ga. and Cincinnati, Ohio respectively. Over the last two years Peak 10 has completed construction of additional facilities in five of its markets to meet customer growth and demand.

The transaction is expected to close in early October.

New tech executive council launched in Charlotte

Wednesday, September 1st, 2010

CRTECCHARLOTTE, NC – A group of  Charlotte-area technology executives and entrepreneurs have launched a new organization called The Charlotte Regional Technology Executive Council (CRTEC).  The organization will be dedicated to the continuous education for its members, and the economic development of technology companies in the Charlotte region.

The council resources are primarily volunteers comprised of executive level technology leaders in the Charlotte region.

Founding Member and elected President Paul Solitario states, “CRTEC’s vision is to be the premier forum for networking and collaboration between technology executives in the Charlotte, North Carolina area.  The organization will provide ongoing candid deliberation on key technology issues facing our executive community, and promote social networking to foster the development of relationships essential to each member’s success.”

CRTEC launched its website this month.  Information about membership, upcoming events, and member and Board of Director profiles can be found at Techexeccouncil.

Ridgemont Equity Partners buying majority stake in Unite Private Networks

Tuesday, August 31st, 2010

Ridgemont Equity PartnersCHARLOTTE, NC – Rigemont Equity Partners, a middle market buyout and growth equity firm, has signed a definitive agreement for a majority investment in Unite Private Networks, a provider of high-bandwidth, fiber-based communications networks. The financial terms of the transaction were not disclosed.

UPN specializes in providing high-capacity data communications networks and related services to schools, government, carriers, data centers and enterprise business customers. UPN currently provides service in 12 states, primarily in the Midwest U.S.

Ridgemont is a private equity firm that was formed in August 2010 and specializes in middle market buyout and growth equity investments. The principals of Ridgemont have invested over $3.1 billion in more than 140 companies over the last two decades.

“Our arrangement to partner with the management team at UPN and serve as the equity sponsor of the company is indicative of Ridgemont’s core strategy going forward as an independent firm. UPN operates within one of our historical focus industries and fits the profile of a company with strong opportunities for growth,” said George Morgan, partner at Ridgemont.

“We were impressed with UPN’s consistent and profitable earnings, long-term customer relationships, and dedicated employee base. UPN has developed an efficient platform for growth and we are excited about the potential for the business to continue to expand and serve new markets.”

Many miss big web design opportunity

Tuesday, August 24th, 2010

By Allan Maurer

Kelley McDonaldMCLEAN, VA – If you spend much of your time, effort and money working on your web site’s landing page, you’re probably missing a major opportunity to capture more attention from your visitors. So says Kelley McDonald, director of Information Architecture with Navigation Arts, a McLean, VA-based web design and development company.

“Most traffic goes to content pages within your site,” McDonald tells us. “Only 15 percent goes to the landing page.” Nevertheless, it can be difficult to get clients to listen when he tells them that, McDonald admits.

“Three quarters of the doors through which people come into your site are content pages. You’re missing a big opportunity by not thinking about how to serve people where they are actually landing,” he says. “Think of Google as your homepage. People experience you through your content pages and they don’t march through your site as if they’re in a house.”

If our own analytics are any guide, McDonald is right on with his. Half our traffic comes from search engines and almost all goes to content pages rather than our landing page.

Design from the inside out

How do you take advantage of knowing people arrive at content pages rather than a landing page?

“Design from the inside out,” says McDonald. “Ask yourself how you can build on the question that brought them to the content? It’s important to have highly relevant links to other content that builds on the user’s question.”

That doesn’t mean services that automatically provide links to somewhat relevant content, he adds.

He also recommends avoiding “happy talk.” It’s all the “Hi, welcome to our site, we’re here to server your needs,” type of copy so prevalent on business sites. “It’s a highly ignorable block of text that people quickly gloss over,” says McDonald.

More technically, he also suggests separating content from its display, creating relationships between objects and systematically relating pages.

It’s not magic

There will always be a large percentage of users who come to a site for one item and leave, he notes. “We don’t think you’ll ever catch more than 35 percent (to click on other content).” But the idea is to “Move the dial closer to what you want.”

“The key thing is relevancy. It’s more about the content than technique.” Eye-tracking studies show where people look and where they don’t, but “It all comes down to content people need or want and what’s relevant to them,” McDonald says. “It’s about taking that extra step to connect things. I don’t think it’s magic.”

Treat ads as content

The same concept works regarding advertising on the web, he says. “Advertising online is in many ways a blind spot for people. Studies show people avoid it if it looks the least bit like advertising. Eye-tracking shows them avoiding ad spaces.”

Making ads more relevant and more digital increases the chances that people will engage with the ad,” he points out.

“It’s about personalization and localization,” he adds. “If you can serve up ads related to the user and what his questions are (that brought him to the content), and if  they’re treated and shaped more like content, they work better. If they’re shaped like print ads, no amount of trickery will work.”

“The user experience is the bread and butter of what we do at Navigation Arts,” McDonald says. The 70-employee company includes 19 information architects.

McDonald is one of more than 50 Internet and digital media experts who will converge on Tysons Corner, VA, Oct. 18 for the first Digital East event.

Diversified DC market good to the company

McDonald tells us the Navigation Arts founders, who ran and sold Bethesda-based Iconics during the dot com boom era, wanted to “Give it another go and focus on quality.”

They filed their company papers the day before Sept. 11, 2001 at the Watergate Hotel, but despite those inauspicious beginnings, established a solid reputation in the Mid Atlantic region, Houston, and upper MidWest.

“The DC market has been good to be in for user experience,” says McDonald. “There are so many different kinds of organizations here. It’s the capital of non-profits, there’s the federal government, telecom startups, and different startups in Northern Virginia.”

That multi-faceted DC economy means that during the downturn, Navigation Arts business “Didn’t skip a beat, we had irons in the fire with so many different buyers, all focused on the user experience.”

Designed city portals

While the company doesn’t pretend to be a large government IT integrator, it does find projects where it can have a big impact, McDonald says. “We look for projects such in e-government, anything that is citizen-facing.”

It’s been working on a major project, not yet live, for the State Department consulates to streamline its processes to make finding information on Visas, passports and fraud much easier and faster, for instance.

It also redesigned the Charlotte Observer’s Charlotte.com site to make it more focused on social media, and a city portal site for Richmond, VA.

“Both have done well and we created each in two months from inception to launch,” McDonald says.

The Navigation Arts site follows the company’s own advice. It is user friendly and offers lots of short videos, including several by McDonald, on improving user experience and other topics.

Grotech VC sees money management as ripe for tech startups

Wednesday, August 11th, 2010

Don Rainey

Don Rainey

By Allan Maurer

VIENNA, VA – In the new “recession-driven” America, there is a big opportunity for startups to develop technology that helps people save, manage, and spend their money, says Don Rainey, a general partner with Potomac-based Grotech Ventures.

In an interview that ranged from companies providing local buying deals, such as Groupon and Grotech-backed LivingSocial, to the future of Facebook and Twitter, Rainey said the recession has made consumers money conscious.

Grotech focuses on early stage information technology companies. Rainey currently serves on the boards of Grotech portfolio companies ARPU, Clarabridge, LivingSocial and Zenoss, as well as the Northern Virginia Chapter of the March of Dimes. It has offices in Maryland and Virginia.

In Fall 2008, Rainey was appointed for a second term as an emerging technology consultant to the Chief Information Officer of the US Department of Defense through the DeVenCi Program. The DeVenCi Program consists of a handful of venture capitalists who research and nominate companies to solve the US Department of Defenses’s unmet technology needs.

Money is where the money is…

Money is the dominant concern of consumers these days, Rainey says, which opens a number of opportunities for startups.

“The consumer in the 1990s was enamored of technology focused on the new, new thing and the Internet brought a lot of that to their doorsteps,” Rainey told us. “Today, there is a different focus in the minds of most consumers.”

They have lost their fundamental trust in banks and Wall Street, he notes. “Consumers are going to be open to different banking offers.”

That means there are opportunities for startups offering new savings, investment and payment vehicles.

More firms will leverage electronic money management

Also, Rainey sees alternatives to credit card payments–which cost merchants a processing fee–as generating competition in the electronic payments space. “There’s a tremendous inefficiency in payments that doesn’t benefit the consumer or merchant,” he says. “If people pay in cash, they want to benefit from doing so.”

He points to a program in the DC area that allows people to link their grocery store purchases to a gas station, resulting in points that can be used to get 12 cents a gallon off when they refuel.

“I think we’ll see more things that leverage electronic expenditures,” he says.

We mentioned that Atlanta has a number of startups and more mature players in that sector, particularly in online payments. “Banking centers are a logical source of this,” he agreed.

Charlotte, also a banking center, is on the other hand, not active at all in what seems a natural space for similar activity. “I was in Charlotte this summer, and I love it,” Rainey said. “But it’s curious…I don’t know if they need more local money or a pied piper to lead the way, but they have the talent to do this.”

Look for part two

Rainey is one of more than 50 digital domain experts, entrepreneurs, and venture capitalists participating in the first Digital East event at the Hilton, McLean in Tysons Corner Virginia October 18. The event will cover topics such as Social Media, Cloud Computing, Web Analytics, Online Marketing, Ecommerce, Email, and Search among others. It is presented by Tech Media, which is also presenting the third annual Internet Summit in Raleigh in November.

This is part one of a two-part report on our interview with Don Rainey. Part two will take a look at his thoughts about local  buying and advertising, privacy, personalization and social networking, particularly Facebook and Twitter.

To contact TechJournal South Editor & Writer Allan Maurer: Allan at TechJournalSouth dot com.

ParinGenix near close on $5M round for after heart attack treatment

Tuesday, August 10th, 2010

ParingenixWESTON, FL – ParinGenix, which is developing a modified form of heparin to reduce inflammation in patients following a heart attack, has nabbed $4.39 million of a $5 million equity funding, according to a regulatory filing.

Investors in the company, which disclosed the raise in a filing with the U.S. Securities and Exchange Commission, include Investors Research Corp. Technologies, (RCT) of Tuson, AZ, Academy Venture Fund of Charlotte, NC, A.P. Kennedy Family Securities of Madisonville, LA, CHL Medical Partners, Stamford, CT, Domain Associates, Princeton, NJ, and Aurora Funds, NC.

It raised a $4 million A round in 2002 and a $20.4 million B round in 2006.

Previously KRCT Therapeutics Inc., ParinGenix has developed a form of heparin that significantly reduces damage to the heart following myocardial infarction. It’s lead drug, PGX-100, is also in clinical trials for other critical-care indications.

HIFU heats up with $1M of $10M offering for prostate cancer treatment

Thursday, July 29th, 2010

HIFU device

HIFU ultrasound device

CHARLOTTE, NC – US HIFU, a  firm that has developed a treatment for prostate cancer that uses ultrasound to kill cancer cells with heat, has raised $1 million of  a $10 million equity offering, according to a regulatory filing.

The company’s treatment evolved from a technology developed in Europe. The company is headquartered in Charlotte, NC.

In 1989, three  European research groups initiated a project to develop an efficient and non-surgical treatment for localized prostate cancer. After ten years of development Ablatherm HIFU was approved for treatment in Europe.

At present, Ablatherm HIFU is being used throughout Europe, Russia and other Asian countries. To date, the company says that thousands of patients have been treated successfully in many European centers. It also provides the treatment at a Cleveland Clinic in Toronto.

The treatment uses an ultrasound probe to heat prostate cells to 185 degrees (F), killing them. It is effective on stages T1 and T2, which are also curable by radiation or surgery.

US HIFU is managing FDA clinical trials of its Sonablate 500 medical device. One trial is for primary prostate cancer and another is for patients who had radiation treatment failure.

The company dislcosed the offering in a filing with the U.S. Securities and Exchange Commission, which sites four investors.

Principals cited in the filing include David Jahns, of Galen Partners, a health–care growth-equity investment firm in Stamford, CT; George Suarez, co-foudner of US HIFU,; Arie Belldegrun, of the University of California-LA Institute of Urologic Oncology; and Lawrence Scott, a partner in the Charlotte law office of Nelson Mullins Riley & Scarborough. CEO Stephen Puckett Jr. and Chair Stephen Puckett Sr. are also listed.

M&A roundup: acquisitions in Maryland, Georgia, DC

Friday, July 23rd, 2010

SK12SOUTHEAST – The summer doldrums are upon us, with a noticeable slacking of funding stories weekly, but tech related merger and acquisitions continue at a pace of about half a dozen or so weekly in the Southeast.

Scantron Corp. acquires Spectrum K12 Solutions

TOWSON, MD -In yet another deal involving a Southeast-based company with education-related software,  Scantron Corp. has acquired Spectrum K12 School Solutions, a recognized industry leader in providing response to intervention, student achievement management and special education software solutions. No financial details were reported.

Spectrum K12 complements and enhances the solutions currently being delivered to the education market by Scantron. Spectrum K12 develops, markets and sells products and services that allow educators to evaluate individual student academic progress.

This is the third deal involving Southeast educational software companies we’ve seen in the last two quarters. It’s obviously a space undergoing some consolidation.

Georgia’s Southwire agrees to acquire Tappan

CARROLLTON, GA – Southwire Co., which sells wire and cable industry products, has bought New York – based Tappan Wire & Cable Inc. . Tappan has headquarters and a manufacturing facility in Blauvelt, New York. Financial details were not disclosed.

Tappan supplies the electronics, signal/control and industrial markets.

SB Nation buys The Sporting Blog

WASHINGTON, DC – SB Nation, a network of sports blogs, has purchased The Sporting Blog, published by Charlotte-based SportingNews.com. Financial terms were not disclosed.

SB Nation raised $8 million in funding led by Comcast INteractive Capital a year ago. It runs more than 270 sports-related blogs. It gives its writers, mostly amateur sports fans, SB Nation equity and a share of ad revenue, an unusual arrangement in the blogging world.

Contact Tech Journal South Editor and writer Allan Maurer: Allan at TechJournalSouth dot com.

Companies waking to need to monitor social media

Thursday, July 22nd, 2010

By Allan Maurer

Gregory Artzt

Gregory Artzt

CHARLOTTE, NC – Once upon a not so very long ago, it was tougher getting credibility for a service that measures social media sentiment toward a brand, says Greg Artzt, founder and CEO of General Sentiment. “It felt like an uphill battle in the beginning. Many traditional research executives reject that statistically relevant information can be gathered and measured by listening to social media.”

But an unending series of reputation disasters aided and abetted by social media have seriously affected Tiger Woods, Toyota, Lebron James, Mel Gibson, BP, and assorted other businesses, entertainment figures and politicians. The noise level woke some people up.

“So it’s become a lot easier,” Artzt tells us. “It’s still a traditional research world, but the use of social media listening is now seen as fire detection, making sure nothing bad happens.”

Artzt and his co-founders created General Sentiment in New York in 2008, although he says they didn’t really get rolling until January 2009. About six months ago, it opened its Charlotte office, where most of its researchers and its client services office are located.

Growing in Charlotte

The angel-backed company also raised $150,000 from National Science Foundation SBIR grants and may seek a funding round later this year. It employs about five people in Charlotte now, expects that to be seven shortly and is looking for addition

The company’s technology on six years of research and development from Stony Brook University and delves heavily into the natural language processing field. It performs deep natural language processing, sentiment, and media analysis across millions of sources of content daily.

In addition to quarterly reports it releases to substantial media coverage quarterly, the company sells custom reports and software as a service that allows the client to track Internet sentiment on its own.

Was my marketing successful?

Artzt admits the company is in a highly competitive field, but says “Our system is the most researched technology of its kind.” And it isn’t restricted to looking for fires than need quenching.

“We focus on providing high-level information executives really need,” Artzt says.  “Was my marketing effort successful? Am I getting any tangible value from my efforts in Social Media? Should I drop my celebrity sponsor? Is my TV show creating a real impact, and if so, where?”

Of course, when it comes to such things as keeping or dumping a celebrity sponsor, what’s good for the company may not be just the opposite for Tiger Woods—both determined by the same viral firestorm.

Response is important

Artzt says the amount of damage to a brand is often determined by its response to a given problem. Toyota, for instance, did a good job of turning things around to bounce back, he says, while BP probably faces a long battle to regain its oil-soiled reputation.

Apple too, seems to have won the PR battle. “There has been quite a bit of discussion about how well Steve Jobs did addressing the antenna issue, but doing it was good for the brand,” says Artzt.

RIM’s Blackberry, a General Sentiment customer, also handled its end of the antenna flap well by coming out after Job’s press conference saying consumers don’t need a case to get good reception on their phones.

So the good side to all the bad publicity drowning BP, forcing Apple into press conference mode, and celebrity brouhahas, is that many businesses now realize that reputation matters, even though “They’re still in the early phases of that mindset,” says Artzt.

Still, he adds, many more clearly see that that these things have “real world impact” on the bottom line, on sales, on a company’s stock price and so on.

Apple tops Google for media impact in Q2, BP biggest loser

Wednesday, July 21st, 2010

General SentimentCHARLOTTE, NC – Apple topped Charlotte-based General Sentiment’s Impact Value rankings this quarter on the strength of its groundbreaking product releases, the iPad and iPhone 4. Google fell to the number three spot despite generating record levels of discussion for the brand in the report.

General Sentiment also launched a new media metric called Perception Value, which measures the brand with a greater emphasis on the quality of the content and exposure. For the first time, General Sentiment produced a top-10 ranking of winners and losers based on Perception Value.

Perception Value isolates effects of the public sentiment on brand value by assigning positive value to positive mentions and negative value to negative mentions.

“It is probably no surprise this quarter that BP topped the list of biggest losers following the oil spill disaster in April,” notes Greg Artzt,  CEO of General Sentiment. “One surprise, however, is retailer Polo Ralph Lauren taking the winning ranking.

“We introduced Perception Value as a new and important form of media value that better tracks the real-world changes in a brand’s overall consumer sentiment,” Artzt adds. “We believe this is the closest metric to ‘true value’ for brands of a certain size and stature, where the old PR adage of ‘any news being good news’ doesn’t hold true.

“Some of the biggest surprises in the report include Apple taking the top Impact Value spot, and Adobe following BP as one of the biggest Perception Value losers of the quarter. Clearly the ‘flash compatibility’ battle has not worked in Adobe’s favor.”

To see the Q2 Global Brand MVR full report see:, go to Global Brand Report.