Quiet Deals of Q2

Justin Hibbard

It's that time of the quarter when researchers report the VC investing stats from the previous three months. You can see the results here. For Deal Flow, that means it's time to look back at some of the unreported and under-reported deals and startups of the second quarter of 2005. Click on the extended entry to get the lowdown.

* Topixa Inc. -- This three-month-old, Palo Alto, Calif. startup is the brains behind RawSugar, a social search and Web sharing service. Using tagging technology, it combines Web favorites from you, your coworkers, and your friends along with regular Web search results. The company was founded by Ofer Ben-Shachar, a former founder of application-server software maker NetDynamics, which Sun Microsystems acquired for $170 million in 1998. So far, the company is self-funded.

* Pufco Inc. -- Deal Flow first reported on this seven-month-old, Menlo Park, Calif. startup in our May interview with VC Vinod Khosla. The company, started by MIT professor Srini Devdas, is developing a tiny chip that can uniquely identify an object and supposedly can't be counterfeited. Khosla is a seed investor in the concern, which in June raised $1 million in a series A preferred stock financing.

* Mi5 Network Inc. -- This eight-month-old, Sunnyvale, Calif. startup is building anti-spyware software for use inside corporations. CEO and founder Doug Camplejohn started MyPlay, a digital music locker service, in 1999 and sold it to Bertelsmann for $30 million in 2001. VP of engineering and founder Ofer Doitel founded broadband infrastructure company AccessLan Communications in 1997 and sold it to Advanced Fibre Communications Inc. for $43 million in 2002. So far, the company is self-funded.

* Mu Security Inc. -- This Cupertino, Calif. outfit was started by former employees of security appliance maker NetScreen Technologies Inc. The four-month-old company develops software that detects security flaws in other software and infrastructure products. CEO Ajit Sancheti was product line manager for emerging technologies at NetScreen. Co-founder Kowsik Guruswamy was director of sensor technologies at intrusion-detection appliance maker OneSecure, which NetScreen bought in 2002. In June, Mu Security issued $750,000 of convertible notes. Peter Wagner, a general partner at VC firm Accel Partners, is on the board.

* LucidPort Technology Inc. -- This nine-month-old San Jose, Calif. company develops software for designing semiconductors. Founder Wei-Ti Liu formerly founded networking chipmaker PLX Technology, Inc. and NetChip Technology, Inc., which he sold to PLX in 2004 for $22 million. On the board: D. James Guzy, chairman at PLX and a director at Intel Corp. and Cirrus Logic, Inc.; Peter Chen, founder and Chairman of VC firm Crosslink Technology Partners and founder and chairman of Central Semiconductor Manufacturing Corp. (CSMC), the first silicon wafer foundry in China; and Howard Hartenbaum, partner at VC firm Draper Richards. The company raised $2.1 million in a series A preferred stock financing in June.

* Verdi Timing Solutions Inc. -- This three-month-old, San Jose, Calif. startup makes electronic design automation (EDA) software with an emphasis on timing. Founder Shiang-Tang Huang was formerly at National Taiwan University and has published influential paper on timing in design automation. The company's board includes Ping Chao, executive VP at EDA software company Cadence Design Systems, and Andrew T. Yang, founder, chairman, and CEO at EDA software company Apache Design Solutions. In June, Verdi raised $500,000 in a series A preferred stock financing.

* Adapt Technologies Inc. -- This nine-month-old Pasadena, Calif. company makes MarketFinder, software that helps advertisers place and manage ads in the paid search markets. Alex Bäcker, founder and CEO, was a member of Sandia National Labs' Evolutionary Computing and Computational Biology Department and a visiting scientist at the California Institute of Technology. In June, Adapt raised $9.8 million in a series A preferred stock financing from VC firms Mohr Davidow Ventures, Emergence Capital Partners, and Concept2company.