2006 has been a banner year for Borealis Ventures. Three of our portfolio companies were acquired for sizable returns on our investment, we added four companies to our portfolio, and our previous investments made significant progress. Below is a quick overview of some of the year’s highlights:

Exits

@Last Software
@Last was acquired by Google, Inc. in March 2006.

GlycoFi, Inc.
GlycoFi was acquired by Merck & Company, Inc. in June 2006 for approximately $400 million.

Scribe Software
Scribe Software was acquired by private equity firm The Mustang Group in September 2006.

New Investments in 2006

SpaceClaim
In March, Borealis participated in a series A round of financing of SpaceClaim, Inc. SpaceClaim is an application software startup staffed and funded by proven industry veterans who were early employees at Parametric Technology Corp. (NASDAQ: PMTC) and Solidworks (acquired by Dassault– NASDAQ: DASTY). SpaceClaim’s software enable users to innovate, design and produce products much faster than any current mechanical CADD (Computer-Aided Design and Drafting) system.

Flurry
In April, Borealis led a seed round of financing in Flurry, an early-stage provider of software and mobile data services founded by Dartmouth alumni. Flurry is building a business on the opportunity that exists to enable mobile access to email and other data on mass-market, low-end handsets. Its first product, Flurrymail, is an email application that already has users in over 200 countries.

Icovia
In April, Borealis also participated in a seed round of financing in Icovia, Inc., a leading independent developer of space planning software applications for retailers, manufacturers, interior designers, and other design professionals. Borealis is working with Icovia to develop its technology into a lead- generation platform to collect and monetize data from potential purchasers throughout the home- buying cycle.

Bar Harbor Biotechnology
In August, Borealis made a seed investment in Bar Harbor Biotechnology, the first commercial spin-out from The Jackson Laboratory. BHB is developing advanced laboratory products and computational tools for molecular profiling based on the established analytical technique of real-time quantitative polymerase chain reaction (“qPCR”). BHB’s technology makes qPCR analysis more convenient, reliable and informative and is compatible with standard qPCR thermal cycler instruments and disposable plates.

Other Portfolio Highlights

Avedro
Avdero has been busy developing and validating a clinical prototype version of its microwave-based refractive surgery device under the direction of the team that earlier developed and brought to market the first laser-based refractive surgery device. The Company's proof of concept studies at Dartmouth College and validation trials underway in the United Kingdom have demonstrated great promise.

Handmark
Handmark closed a $5 million Series B round in August that was led by Motorola Ventures, with participation by Borealis and the Company's other existing investors. The investment by Motorola is an important endorsement of Handmark by a proven industry leader and further underscores Borealis’ confidence in Handmark’s consumer offering, the technology, the business and the team.

Newforma
Newforma has continued to work with AECO (Architects, Engineers, Constructors & Owners) organizations to define collaboratively the key areas where improvements in interoperability will provide the most dramatic benefits to the project lifecycle. Newforma is applying these market insights to developing software solutions that will bring interoperability among leading AECO applications where it is most needed. The Company’s first offering, Newforma Project Center, was released commercially in 2006, winning 50 commercial enterprise customers in their first 6 months of sale.