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Waltham’s Dynatrace raises $4 Million January 17, 2011

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Waltham’s Dynatrace , a provider of application performance management software, raises $4 Million from a group of undisclosed investors.

Magen Biosciences, a Waltham, MA-based company focused on novel dermatology treatments, is acquired by the contract research firm PPD for $14.5 million December 18, 2010

Posted by HubTechInsider in Acquisitions, Biotech, Health Care IT, Pharmaceuticals, Startups.
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Magen Biosciences, a Waltham, MA-based company focused on novel dermatology treatments, will be acquired by the contract research firm PPD for $14.5 million. The firm was founded in 2006 by a well known group of biotech entrepreneuers and investors, including Rich Aldrich, founder of RA Capital, David Fisher, chief of dermatology at Massachusetts General Hospital, and Christoph Westphal, co-founder of Sirtris Pharmaceuticals. Having raised $17 million in seed and Series A financing from a syndicate of backers including ARCH Venture Partners, TVM Capital, and IDG Ventures (now Flybridge Capital Partners), the purchase price is unlikely to result in an exit for Magen’s backers.

Back in 2008, Magen inlicensed for an undisclosed sum a number of derm compounds from Eli Lilly that showed positive anti-inflammatory and anti-proliferative results in preclinical studies. It’s a good thing they did: those compounds were the primary reason for PPD’s interest in the biotech. The buy-out gives PPD an entrée into the specialist field of dermatology. In a press release announcing the news, PPD CEO Fred Eshelman noted that dermatologic treatments generally have a “more straightforward path to regulatory approval.” That’s certainly part of the logic behind moves of another specialist drug maker, Valeant, which is trying to brand itself as a derm power-house thanks to the recent acquisitions of Coria Laboratories, Dow, and DermaTech.

Novartis Option Fund leads a $30 million Series B financing round for Waltham’s Avila Therapeutics December 18, 2010

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Novartis Option Fund leads a $30 million Series B financing round for Waltham’s Avila Therapeutics.

In a deal that combines equity financing with an option on an early-stage research program, Novartis Option Fund led a $30 million Series B financing on July 27 for Avila Therapeutics, which uses its proprietary Avilomics platform to design and develop covalent drugs in the areas of cancer, autoimmune disease and viral infection (read a write-up from The Pink Sheet” DAILY, here). NOF is a $200 million fund that seeds innovative companies through initial and follow-on investments – the initial investment is coupled with a program option to provide early validation of the company’s technology. Avila says it will use the proceeds to advance its first program into clinical development – its lead programs are a protease inhibitor for hepatitis C (AVL181) and a molecule targeting the Btk kinase (AVL291), an emerging target in oncology and autoimmune disease.

The Waltham, Mass.-based company did not say which of those programs would advance to clinical development first, and neither company identified the therapeutic target of the program for which NOF has option rights. Avila says its drugs work through protein-silencing – the molecules’ covalent nature enables them to bond strongly, selectively and resiliently to disease-causing proteins, theoretically producing superior therapeutic outcomes. The drug candidates’ covalent bonding also makes them effective against mutations in disease targets, according to Avila.

Participating with NOF in the Series B were Avila’s original investors – Abingworth, Advent Venture Partners, Atlas Venture and Polaris Venture Partners. The four VC firms staked Avila with $21.3 million in Series A funding in 2007, and also made a convertible debt purchase this past May that initially brought Avila $5 million and eventually could yield $15 million.

How many stock options should executives at a startup company be granted? November 28, 2010

Posted by HubTechInsider in Acquisitions, Boston Executive Moves, Investing, IPOs, Staffing & Recruiting, Startups, Venture Capital.
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How many stock options should executives at a startup company be granted?

The Going Rates for Senior Executives’ Stock Options in the Boston area, 2011:

A President or CEO of a startup may typically receive anywhere from 6% to 10% of the company’s stock. The actual percentage of stock granted to the CEO will depend upon such factors as the company’s life stage and financial stability and revenue outlook when the new CEO signs on for employment. The earlier in the company’s formationary period the new CEO signs on, the higher the percentage of stock granted to him may be.

A Senior Vice President of a startup may typically receive anywhere from 1% to 3% of the startup’s stock. In general, and this is across many industries that startups participate in in the Boston area, those with a marketing and sales pedigree are rewarded toward the higher range and those with a financial orientation toward the lower range. This is often due to the fact that very top-notch marketing and sales executives are sinmply harder to find because of intense competition in the Boston area, and when they succeed, they add signigficantly to the bottom line of a startup company’s revenue outlook. In contrast, consider that senior Financial executives are essential to reassure skitish venture, angel and other early stage startup capital funding institutional and individual investors, but they can’t usually stake a claim to having increased sales.

A Vice President or a Key Manager of a startup company in the Boston area may expect to receive (or in the Boston area, may expect to have had to have negociated strongly for) .5% to 2% of a startup company’s stock. A Vice President of sales or a manager of technolgy would be liklier to command toward the higher end of this range of stock percentages, while a Vice President of finance or manufacturing would probably be at the lower end. As I outlined above with Senior Vice Presidents, those with marketing and sales expertise have the greatest amount of leverage. Executives and managers below these senior levels usually receive something less than .5% of the startup’s stock in the Boston area.

I should point out with some stridency that the above stock percentages that I have outlined can be misleading, and I advise starup senior management teams, hr directors, boards of directors, investors, and job seekers to take the above guidelines with care. In the Boston area, a great deal of savvy negociations by knowledgable parties, all armed with a great deal of stock option terminology and business experience, would have to be conducted to arrive at stock option structures like the ones above.

The actual percentage of a startup company that an employee receives in options is much less important than its potential value. Having 10% of a company that’s unlikely to exceed $1 million in value is much less desirable than having 1% of a company that has a good chance of being worth $100 million.

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About the author.

I’m Paul Seibert, Editor of Boston’s Hub Tech Insider, a Boston focused technology blog. I have been working in the software engineering and ecommerce industries for over fifteen years. My interests include electronics, robotics and programmable microcontrollers, and I am an avid outdoorsman and guitar player. You can connect with me on LinkedIn, follow me on Twitter, even friend me on Facebook if you’re cool.

I own and am trying to sell a dual-zoned, residential & commercial Office Building in Natick, MA. I have a background in entrepreneurship, ecommerce, telecommunications and software development, I’m the Director, Technical Projects at eSpendWise, I’m a serial entrepreneur and the co-founder of Tshirtnow.net.



Waltham’s Care.com, online caregiver service provider, raises $20 Million October 28, 2010

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Waltham’s Care.com, a provider of online services for finding caregivers, raises $20 Million from a group of investors led by New Enterprise Associates, Matrix Partners and Trinity Ventures.

Waltham’s Red Bend Software acquires Santa Clara’s VirtualLogix, for undisclosed terms October 4, 2010

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Waltham’s Red Bend Software, a provider of mobile software management tools, acquires Santa Clara’s VirtualLogix, a provider of real-time virtualization technology for mobile handsets, for undisclosed terms.

Waltham’s OpenPages, a developer of risk management systems, is acquired by IBM October 3, 2010

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Waltham’s OpenPages, a developer of risk and compliance management systems, is acquired by Armonk, New York -based IBM for undisclosed terms.

In a statement, Rob Ashe, IBM’s general manager of business analytics, said: “Integrating risk management systems across once-divided units and functions is essential to seeing the bigger picture. The combination of IBM and OpenPages will provide a holistic and consistent approach to risk management helping companies combine that insight with performance management to drive better decision making.”

OpenPages is the latest IBM acquisition in Massachusetts. Last month, IBM said it was purchasing Unica Corp. of Waltham for $480 million. Over the years, IBM has scooped up more than a dozen Massachusetts businesses in such fields as data storage and security.

Waltham’s ActiFio, a Disaster Recovery Solutions provider, raises $16 million in a Series A round of equity funding September 27, 2010

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Waltham’s ActiFio, a provider of data protection, disaster recovery, and business continuity solutions, raises $16 million in a Series A round of equity funding led by North Bridge Venture Partners, Advanced Technology Ventures, Netezza Corporation and Greylock Partners.

Pyxis Mobile, the Waltham based maker of mobile applications for the financial services industry, raises $2 Million June 28, 2010

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Pyxis Mobile, the Waltham based maker of mobile applications for the financial services industry, raises $2 Million from a group of investors led by Ascent Venture Partners, Egan Managed Capital, and Brook Private Equity.

Waltham’s Affirmed Networks, telecom technology provider, raises $10.9 MM June 27, 2010

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Waltham’s Affirmed Networks, a developer of unspecified telecom related technologies, raises $10.9 Million (Affirmed Networks has secured $10.89 million of an $11.52 million funding round) from Charles River Ventures, at whose office the company is being incubated, and Matrix Partners. The company was founded by Sonus Networks vets Harris Fishman and Hassan Ahmed. It does not yet have a public website.

Waltham Internet security company Fidelis Security Systems raises $2.3 Million April 26, 2010

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Waltham Internet security company Fidelis Security Systems raises $2.3 Million from a group of undisclosed investors.

How many Massachusetts based companies are listed in the Fortune 500? April 23, 2010

Posted by HubTechInsider in Investing, Management, Manufacturing, Massachusetts High Technology, Military Contracting, Technology.
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There are 13 companies listed in this year’s Fortune 500 index of America’s largest corporations. The chart below lists all 13 Massachusetts-based companies that are in the Fortune 500, their headquarters town in Massachusetts, their rank in the Fortune 500, their 2008 revenues (in millions), and number of employees.


We can see that the 13 corporations in the Fortune 500 index of America’s largest corporations that are based in Massachusetts had combined 2008 revenues of $193 Billion dollars and employed a combined 530,000 people worldwide.


Waltham was the Massachusetts city with the most Fortune 500 company headquarters based within its borders, with three of the companies listed being based in the Watch City. Two were based in Cambridge, two in Framingham, two in Natick, two in Boston, and one each in Springfield and Hopkington.


Thirteen Massachusetts based companies are listed on the Fortune 500 index of America's largest corporations

Thirteen Massachusetts based companies are listed on the Fortune 500 index of America's largest corporations


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Verizon to open new Waltham, Massachusetts 4G & FiOS Innovation & Research Center April 19, 2010

Posted by HubTechInsider in events, Fiber Optics, Mobile Software Applications, Telecommunications, Wireless Applications.
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Verizon Communications Inc. says it plans to start building a new research center in Waltham, Massachusetts focused around 4G wireless Long Term Evolution (LTE) technology. Verizon Wireless currently is piloting an LTE network deployment in parts of Boston. The new Verizon Waltham Technology Innovation Center will eventually house more than 300 scientists and researchers, officials said, most of whom are already working for Verizon in two exisitng buildings at that location.


In addition to its LTE research, the new Waltham campus will house researchers working on other Verizon offerings. LTE is the major focus of that building, but there will also be other Verizon work going on, including the further development of FiOS.


The campus at 117 West St. in Waltham will include three buildings once the new one is finished. In addition to the research space, it will house offices, as well as an executive briefing center.


As of August 2009, Verizon had 10 LTE 4G cell sites running around Greater Boston in its pilot deployment. LTE wireless service is expected to provide up to 10 times the speed – or about 8 megabits per second – of current 3G services. In March, Verizon announced that in its pilot deployments it was seeing average speeds of between 5Mbps and 12Mbps on a download in real world use, with peaks as high as 50Mbps.


Oracle acquires Waltham’s Phase Forward for $685 Million April 18, 2010

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The Oracle Corporation has agreed to buy Phase Forward, which makes software used to manage clinical drug trials, for $685 million, the companies said Friday. Oracle, the leading maker of database software, plans to add Phase Forward to its Health Sciences unit. Oracle is paying $17 a share in cash for Phase Forward’s stock, 30 percent more than the $13.08 closing price Thursday. Stock in Phase Forward, which is based in Waltham, Mass., rose $3.72, or 28.4 percent, to $16.80 a share. Stock in Oracle, based in Redwood City, Calif., fell 25 cents to $25.95 a share.


The Phase Forward purchase may help Oracle tap into a growing market for programs that helps make the U.S. health-care system more efficient, said Cross Research analyst Richard Williams. Oracle Chief Executive Officer Larry Ellison, 65, has spent about $42 billion buying 62 companies since January 2005.


Phase Forward delivers its software as a service over the Internet, helping researchers, physicians and regulators access and share data for clinical trials. The company’s programs have been used in more than 10,000 clinical trials by more than 300 companies and organizations, including AstraZeneca Plc, the U.S. Food and Drug Administration, and GlaxoSmithKline Plc.


Phase Forward, founded in 1997, will become part of Oracle’s Health Sciences Global business unit. Oracle, based in Redwood City, California, expects to close the deal in mid-2010.


Waltham’s Metalogix Software acquires Ann Arbor, MI -based StoragePoint April 12, 2010

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Waltham’s Metalogix Software, a provider of products for Microsoft Sharepoint migration, management, and archiving as well as Exchange migration and archiving, acquires Ann Arbor, MI -based StoragePoint, a developer of software that helps organizations to shrink their ShrePoint 2007/2010 content databases by 90% – 95%.


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Newton’s Rocket Software, an IBM DB2 Database solutions provider, acquires Waltham’s Computer Corp of America April 6, 2010

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Newton’s Rocket Software, an IBM mainframe DB2 Database solutions provider, acquires Waltham’s Computer Corp of America, a data management product developer for undisclosed terms.

Boston’s Hangout Industries, Inc., a developer of a social gaming platform, has raised $2 Million in new equity financing April 6, 2010

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Boston’s Hangout Industries, Inc., a developer of a social gaming platform designed to run on Facebook and other social media networks, has raised $2 Million in new equity financing from Highland Capital Partners and Waltham’s Polaris Venture Partners.

Cambridge’s Allurent, an ecommerce technology company, raises $2 Million March 1, 2010

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Cambridge’s Allurent, an ecommerce technology company, raises $2 Million in a Series C round of equity capital from Waltham’s Polaris Venture Partners.

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