The southeast’s high-tech industry continues to creep carefully forward, as companies look to make changes in their organizations with eyes on the future.

Perhaps most promising of all is the continued uptick of venture deals in the
Carolinas. Last week, ParinGenix, a spinoff of the Carolinas Medical Center that focuses on treating heart attack victims nabbed $4 million in first-round funding. Relativity received an infusion of $4.5 million to help relieve its cash flow troubles, while V3 Systems secured $11.5 million in its initial funding round and Proxima Therapeutics landed $14 million in a fifth-round funding deal. In one of the biggest venture deals in the Carolinas in the last couple of years, Nobex finalized a $35-million round of funding.

Longer term, two major iniatives mean good news for North Carolina’s high-tech sector. The Golden LEAF foundation is looking to invest $85 million of tobacco settlement money in North Carolina’s biotech industry. And in an optimistic undertaking, an expansion to more than 10 times its current size is planned for the Piedmont Triad Research Park.

As earnings reports continue to trickle in, there was no clear indication of how the overall tech sector is doing. The announcements have been mixed, some good, some bad, some a little of each within a single company. Paradigm’s quartely revenue fell 13 percent, year-to-year revenue at Tangram fell 24 percent, Incara Pharmaceuticals reported a loss of $3.4 million and is in danger of running out of money by the end of next month, and SpectraSite lost $127 million. Level 8 and Summus had losses to report as well.

On the other hand, both Digital Broadband and Knology narrowed their losses, and Triangle Pharmaceuticals cut its quarterly loss by $6.3 million.

And as the stock market prolongs its bumpy ride, area companies are feeling the effects of the starts, stops and drops. Atlanta’s SynQuest and T/R Systems are facing delisting from NASDAQ due to poor stock performance, while Charlotte’s Information Architects is already undergoing the process.

But hope is alive, as many companies in the Carolinas and Georgia are making moves that indicate they are ready to enter the next phase of their business.

Several companies announced new partnerships that aim to make separate
orgnanizations stronger. TogetherSoft and Starbase have joined forces to present a series of seminars targeting the software development industry; NDCHealth signed agreements with DrFirst.com and Script-Fast to further electronic prescribing initiatives; Relativity signed an agreement for Nichimen, a trading conglomerate, to help it develop a Japanese version of its RescueWare software.

Organizations are once again looking at the Carolinas as the smart choice to set up house. EMC is betting on its new Triangle-area facilities to boost its revenues, while the Golden LEAF foundation is looking to invest $85 million of tobacco settlement money in North Carolina’s biotech industry. And in an optimistic undertaking, an expansion to more than 10 times its current size is planned for the Piedmont Triad Research Park.

QUOTE OF THE WEEK:

“This is an awful market to get venture capital, but it’s a great time to get people.” – Richard Holcomb, HAHT co-founder

TELECOM & NETWORKING:

August 16: Scientific-Atlanta To Cut 400 Jobs www.localtechwire.com/article.cfm?u=1675&k=18&l=08

August 14: CT Links Up New Raleigh Mall www.localtechwire.com/article.cfm?u=1649

August 14: SpectraSite Cuts Red Ink, Still Drops $127M www.localtechwire.com/article.cfm?u=1643&k=14&l=04

August 12: Why Wireless LAN Continues to be a Security Risk www.localtechwire.com/article.cfm?u=1617&k=15&l=02

August 12: EMC Bets on Triangle Facilities to Kick Start Income www.localtechwire.com/article.cfm?u=1619&k=12&l=02

LIFE SCIENCE & BIOTECH:

August 16: Biologics Adds Another Anti-Cancer Drug to Its Specialty
Pharmacy
www.localtechwire.com/article.cfm?u=1671&k=16&l=06

August 15: Foundation Plans Major Investment in NC Biotech Industry www.localtechwire.com/article.cfm?u=1658&k=15&l=05

August 14: Incara Ponders Future Amid Losses www.localtechwire.com/article.cfm?u=1644&k=14&l=04

August 13: Triangle Pharma Cuts Quarterly Loss by $6.3M www.localtechwire.com/article.cfm?u=1637&k=14&l=04

August 13: Serologicals Plasma To Treat Smallpox Vaccine Reactions www.localtechwire.com/article.cfm?u=1626&k=13&l=03

August 12: Paradigm Loses Money in 2Q, Another Exec Now www.localtechwire.com/article.cfm?u=1625

ON THE VENTURE FRONT:

August 16: Proxima Therapeutics Completes $14M Fifth Funding Round www.localtechwire.com/article.cfm?u=1672&k=21&l=08

August 16: Georgia Venture Deals Slow to a Trickle www.localtechwire.com/article.cfm?u=1668&k=19&l=06

August 16: Get Your Hunting License: NC Venture Season is Open www.localtechwire.com/article.cfm?u=1669&k=19&l=06

August 16: Let’s Make a Deal: Regional Venture Activity Heats Up www.localtechwire.com/article.cfm?u=1670&k=19&l=06

August 15: Relativity Lands More VC, Japanese Development Partner www.localtechwire.com/article.cfm?u=1657&k=18&l=05

August 15: Wake Forest Spinoff Snags First Funding, Looks For More www.localtechwire.com/article.cfm?u=1659&k=18&l=05

August 14: V3 Systems Sets Up Supply Chain of Venture Cash www.localtechwire.com/article.cfm?u=1648

August 14: Nobex Grabs $22.5M in Venture Cash to Build Drug Pipeline www.localtechwire.com/article.cfm?u=1634&k=17&l=04

August 12: Carolinas Med Center Spinoff Grabs a $4M First Round www.localtechwire.com/article.cfm?u=1620&k=15&l=02

EXECUTIVE SUITE:

August 14: After HAHT, Holcomb Plays It Cool With Life www.localtechwire.com/article.cfm?u=1646&k=17&l=04

August 13: HAHT and Cold: Holcomb Talks of Past Success, Current
Environment
www.localtechwire.com/article.cfm?u=1633&k=16&l=03

COMMENTARY:
August 15: What Does WorldCom’s Bankruptcy Mean for Broadband and
Beyond?
www.localtechwire.com/article.cfm?u=1667&k=19&l=06

SOFTWARE & HARDWARE:

August 15: Level 8 Raises Equity, Loses Money www.localtechwire.com/article.cfm?u=1656&k=15&l=05

August 13: InfoStrength Alters Name, Launches New Software for Biotechs www.localtechwire.com/article.cfm?u=1631&k=16&l=03

August 13: TogetherSoft Buying WebGain Technology, Customers www.localtechwire.com/article.cfm?u=1632&k=13&l=03

OTHER NEWS:

August 16: Two Atlanta Firms Face Delisting www.localtechwire.com/article.cfm?u=1666&k=16&l=06

August 14: MindBlazer Helps Get Client Messages to Right Audiences www.localtechwire.com/article.cfm?u=1645&k=17&l=04

August 14: Piedmont Triad Research Park Expanding in Winston-Salem www.localtechwire.com/article.cfm?u=1647&k=14&l=04