2005 2nd Half    

In this issue:

New Investments
  • Cybera Inc.
  • Intechra
  • FWI, Inc.
  • 2005 Summary of New Investments

Portfolio Company Developments
  • Intelliseek, Inc.
  • Asterand plc
  • MedServe, Inc.
  • Construction Software Technologies, Inc.
  • 2005 Summary of Portfolio Company Transactions

  • Tom Ladt Joins as Executive-In-Residence
  • Meet Our CEOs: Roger Ramsey and Kevin Coyle

New Investments

Cybera Inc.

In January 2006, Chrysalis participated in the $12.8 million first institutional round of financing for Nashville-based Cybera Inc., a provider of private networking solutions for business needs. Adams Street Partners of Chicago led the financing. Co-investors included Claritas Capital of Nashville and several prior Cybera investors.

Founded in 2001, Cybera delivers broadband wide area private network solutions to multi-location businesses across the United States, targeting retail, restaurant, convenience store, and financial services organizations. The company's unique network infrastructure allows Cybera to offer the highest guarantees on security, reliability, and performance in the industry.

Chrysalis Principal Wright Steenrod has joined Cybera's board of directors.

Please click here to view the complete press release.

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In August 2005, Chrysalis led the $4 million equity financing of Jackson, Mississippi-based Intechra Holding Corporation, an information technology asset disposition company. Chrysalis co-investors included existing investors Clayton Associates of Nashville and Votum Capital of Jackson.

In December 2005, Chrysalis participated in a $12 million follow-on financing led by Richland Ventures of Nashville. This financing was used primarily to fund the company's recently completed merger with RetroBox which resulted in Intechra becoming the largest full-service information technology asset disposition company in the country.

Founded in 1987 as Resource Concepts Inc., Intechra helps large businesses retire IT assets such as personal computers, servers, monitors, and printers in compliance with federal privacy regulations, state and local environmental laws, and in-house policies. Intechra's customers include some of the largest global computer manufacturers, as well as major companies such as Southwest Airlines, Weyerhaeuser, and Pier 1 Imports.

Chrysalis Managing Director David A. Jones, Jr. serves on Intechra's board of directors.

Please click here to view the most recent press release.

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FWI, Inc.

In September 2005, Chrysalis co-led the $5 million initial equity financing of FWI, Inc., a holding company formed to acquire healthcare publishing and information businesses. Chrysalis' co-lead in this investment was Petra Capital Partners of Nashville.

Concurrent with the financing, FWI acquired the assets of FaxWatch Strategic Information Services, Inc., a specialized healthcare publishing company providing pharmaceutical manufacturer-sponsored medical education newsletters to healthcare professionals. The company's clients include 9 of the top 10 U.S. pharmaceutical manufacturers, and 16 of the top 25 global pharmaceutical manufacturers. At the same time, Scott McQuigg, former President and CEO of HealthLeaders, Inc., a provider of managed care industry intelligence and healthcare industry news, data, and analysis, became FWI's CEO.

Chrysalis Principal Koleman Karleski has joined FWI's board of directors.

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2005 Summary of New Investments

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Portfolio Company Developments

Intelliseek, Inc.

In January 2006, Cincinnati-based Intelliseek, Inc. and New York-based BuzzMetrics, two leaders in the tracking and analysis of online consumer-generated media, announced that BuzzMetrics will acquire Intelliseek to create the new global standard for measuring and understanding word-of-mouth behavior and influence. Upon closing, the combined company, BuzzMetrics, Inc., will operate under the Nielsen BuzzMetrics brand and will be headquartered in New York. VNU, parent to such renowned research names as ACNielsen and Nielsen Media Research, will become a majority shareholder in the new entity with 50.1 percent ownership.

The combined company will have a client roster spanning nearly every key industry with deep focus in media and entertainment, automotive, consumer technology, healthcare, and consumer-packaged goods. Key clients include Canon, Comcast, Ford, General Motors, HBO, Kraft, Microsoft, Nokia, P&G, Showtime, Sony, Target, and Toyota as well as 14 of the top 15 pharmaceutical companies and over eight television networks.

Chrysalis is an investor in Intelliseek.

Please click here to view the complete press release.

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Asterand plc

In September 2005, Pharmagene plc, a London Stock Exchange-listed human tissue-based research services company, announced that it had agreed to merge with Chrysalis portfolio company Asterand, Inc., a private Detroit-based company focused on human tissue supply and services. The merged company, Asterand plc (LSE: ATD), resumed trading on the London Stock Exchange on January 3, 2006. Randal Charlton, formerly CEO of Asterand, Inc., serves as CEO of the merged company.

As a result of the merger, Asterand believes it has become a world leader in human tissue supply and human tissue-based research services. The combination of Asterand's international network for human tissue supply with Pharmagene's expertise in human tissue-based research services enables the new company to provide a comprehensive supply and service package to the pharmaceutical and biotechnology industries where the company has an existing client base of over 70 pharmaceutical and biotech companies.

Chrysalis Managing Director David A. Jones, Jr. serves on Asterand's board of directors.

Please click here to view the complete press release.

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MedServe, Inc.

In September 2005, two of the country's leading providers of medical waste solutions, Med-Shred, Inc. (a Chrysalis portfolio company) and Enserve LLC, announced their merger to form MedServe, Inc.. As a result of the merger, MedServe is able to provide the healthcare industry's most unique, flexible, and cost effective technology-based solutions for disposing of medical waste. Its full-service offerings are also the most complete in the industry, offering state of the art mobile processing technology, a hospital disposable sharps management program, a national sharps mail back service, and solutions for the collection, removal, and ultimate destruction of medical waste for medical centers, clinics, and smaller generators nationwide.

Concurrent with the merger, MedServe completed a Chrysalis-led $12.1 million follow-on equity financing to become the second largest player in the U.S. medical waste market. Chrysalis co-investors in the financing included existing investors Murphree Venture Partners of Houston, Erasmus Louisiana Growth Fund of Baton Rouge, Cogene Ventures of Houston, Delta Capital Management of Memphis, and Treble Range Partners of Birmingham.

Chrysalis Principal Koleman Karleski serves on MedServe's board of directors.

Click here to view the complete press release.

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Construction Software Technologies, Inc.

In 2005, Cincinnati-based Construction Software Technologies, Inc. was named to Inc. 500 list of fastest-growing private companies in America for the second year in a row. With three-year sales growth of 763%, the company was ranked #131 on this year's list and third in the construction industry category.

Founded in 1993, Construction Software Technologies is the construction industry's leading provider of online bid solicitation and preconstruction management services in the U.S. Through strategic partnerships with such organizations as the Associated General Contractors of America, the company provides tens of thousands of general contractors, subcontractors, and suppliers with online tools and solutions to increase competitiveness through reduced costs and increased efficiency.

Chrysalis Managing Director Bob Saunders serves on the company's board of directors.

Please click here to view the complete press release.

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2005 Summary of Portfolio Company Transactions

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Tom Ladt Joins as Executive-In-Residence

In January 2006, Thomas T. Ladt, former President and CEO of Ventas, Inc. (NYSE: VTR), joined Chrysalis as Executive-in-Residence. In this role, Tom will evaluate new business opportunities in the healthcare and business services industries and assist current portfolio companies within these sectors.

Tom's broad experience includes over twenty years in healthcare, business services, and private equity. Most recently, he served as COO of Xodiax, LLC, a provider of managed services, collocation, hosting, and connectivity, and as President of Citation Capital, LLC, a private investment company. Tom served as President and CEO of Ventas, Inc., a healthcare REIT with healthcare and senior housing facilities, from 1998 - 1999. Before that he was Executive Vice President Operations of Vencor, Inc. (now Kindred Healthcare, NYSE: KND), a healthcare company that operates long-term care hospitals, nursing centers, institutional pharmacies, and a contract rehabilitation business, from 1989 - 1998.

Tom is a board member of Greater Louisville's Health Enterprises Network. He holds a BA from the University of Arizona.

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Meet Our CEOs: Roger Ramsey and Kevin Coyle

Chrysalis is privileged to work with a group of talented, seasoned, and exciting CEOs. Here are two examples:

Roger Ramsey, MedServe, Inc.
Roger Ramsey, a forty year veteran of the waste industry, serves as Chairman and CEO of MedServe, Inc. Previously, Roger was the founder, Chairman, and CEO of Allied Waste Industries, Inc. (NYSE: AW), now the second largest waste management company in the U.S. with revenues of $5.7 billion. From 1968 - 1976, he was the co-founder, Vice President, and CFO of Browning Ferris Industries (BFI), a NYSE company with annual sales in excess of $4 billion when acquired by Allied Waste in 1999. Roger has played an important role in taking companies from start-up to multi-billion dollar public companies.

Kevin Coyle, Ygnition Networks, Inc.
Kevin Coyle joined Ygnition in November 2004 as Executive Chairman after over twenty years in the cable television industry, and was named CEO in July 2005. Prior to joining Ygnition, Kevin was CEO of Digital Media from 2001 through 2003 and CFO of One Secure from 2000 until 2001. From 1981 until 1999, Kevin worked for Jones Intercable, first as Vice President of the brokerage group, then as Vice President and Treasurer, and finally as CFO from 1991 until Comcast Corporation acquired Jones Intercable in 1999. Jones Intercable was the eighth largest cable company in the U.S. at the time of its sale to ComCast.

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Chrysalis Ventures
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1650 National City Tower
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(502) 583-7644 phone
(502) 583-7648 fax
Web site : www.chrysalisventures.com
E-Mail: info@chrysalisventures.com

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