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   Technology Stocksdivine interVentures, Inc. (DVIN)

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To: Glenn Petersen who wrote (98)6/20/2000 11:32:00 PM
From: Glenn Petersen
   of 246
From today's Chicago Sun Times:

Divine interVentures to offer shares soon

June 20, 2000


The much-anticipated public share offering for divine interVentures, the
Lisle Internet holding company, has been scheduled for next Monday or
Tuesday, according to federal securities filings.

Another Chicago tech company, Click Commerce Inc., also is planning its
initial public offering next week, sources said. Only one tech company,, has gone public here since March, when prices of
technology stocks slumped, and the IPO market turned hostile.

In recent weeks, however, the market for tech stocks has become
substantially more hospitable, and Monday's 129.27 point gain in the
Nasdaq brought the index to within 90 points of wiping out all its
losses for the year.

Divine plans to sell 14.3 million shares at $13 to $15 to raise up to
$214 million.

Divine, founded by software mogul Andrew J. "Flip" Filipowski, is
bucking the trend at a time when many tech start-ups have postponed or
withdrawn IPOs.

Filipowski recently fired his lead investment bank, Credit Suisse First
Boston, which didn't want to take divine public until the fall. But
Credit Suisse this week is scheduled to take public Handspring, a
competitor to Palm.

Robertson Stephens Inc. will lead the divine IPO, which will take place
just before the Federal Reserve Bank decides whether to raise interest
rates, an event that can affect the stock market.

Filipowski, who is on a "road show" now to promote the offering to
influential investors, told the Chicago Sun-Times earlier that Robertson
Stephens and other affiliated lenders think divine "will stand out as a
quality deal in a period of time when there is a lot of uncertainty in
the marketplace and only the best of the best companies really should be
going public."

He said his company is "burning" cash at a rate of $5 million a month
and has about $100 million on hand.

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To: Glenn Petersen who wrote (99)6/24/2000 2:40:00 PM
From: stockman_scott
   of 246
This is one that I will watch from the sidelines...

DVIN has had to try to re-invent itself recently....incubators also seem to continue to be out of favor.

At the moment I prefer the infrastructure firms (like SEBL) that have proven business models and are already profitable.

It would be nice for Chicago if DVIN performs better than many expect. Yet, in the MidWest there are many other successful Venture firms and early stage technology firms outside of the Divine umbrella.

The next week will be interesting.

Best Regards,


BTW, if I had the right to buy DVIN shares at $1/share (like Michael Jordan) I probably would invest...;-)

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To: Glenn Petersen who wrote (99)6/27/2000 12:41:00 PM
From: Edwin S. Fujinaka
   of 246
This item was posted to the Softbank Board of Raging Bull and might indicate how Divine Interventures could be structured as part of Softbank's Empire. Perhaps DVIN could be the Chicago version of I-Group HotBank NE, a Boston Internet Incubator:

By: high.hopes
Reply To: None Tuesday, 27 Jun 2000 at 12:04 AM EDT
Post # of 4805

What It Takes to be an Entrepreneur in the Net Economy

Monday June 26, 10:15 am Eastern Time

BOSTON--(BUSINESS WIRE)--June 26, 2000--Markets are falling and Internet companies are starting to close down as ``'' becomes more intense. So in today's Net economy, what does it take to succeed?

Ashok S. Kalelkar, Ph.D., Managing Director and General Partner of I-Group HotBank NE, Boston's premier Internet incubator and a SOFTBANK Corporation affiliate, is an authority on entrepreneurship and can provide insights and commentary on just what it takes to be a successful entrepreneur in the Net economy. With extensive experience mentoring entrepreneurs across the industry, Kalelkar is available to discuss such issues as:

The ``Top Ten'' secrets to starting a successful business in the
Net economy.

Funding your start-up: How much equity is too much to give away?
Not all VCs are created equal.
Business plans: Creating the best plan--and knowing how and when
to adapt it.

Internet Incubators: When to embrace (or avoid) incubation.
Risk and reward of advisory boards.
In a virtual marketplace, how much does location matter?
For more information or an interview with Ashok Kalelkar please contact Mike Schultz at (781) 684-0770.

In addition to his role as Managing Director, Kalelkar is an active angel investor and mentor to the Indian and entrepreneurial communities. With over 30 years of management experience in the technology industry, he is a leader in the Internet community. Kalelkar serves on the board of five high-tech start-up companies and was a founding member of TiE-Atlantic, the not-for-profit organization charged with fostering and supporting entrepreneurship by utilizing a strong network of individuals of Indus origin.

Acknowledged as a top incubator by venture capitalist and industry analysts, I-Group HotBank offers services that give young start-ups a six month head start in the important first-to-market race. I-Group HotBank is redefining incubators with its unique ``mentor capital'' services, which include management, partnership, investor and recruitment mentoring; access to SOFTBANK Corporation's powerful network of hundreds of companies and a sustained evergreen venture capital fund. I-Group HotBank's Ames Mansion is a 25,000 square foot brownstone mansion with original woodwork and designs, equipped with the latest technology, support and amenities. I-Group HotBank is located on the World Wide Web at


Schwartz Communications, Inc.
Mike Schultz/Michael DiLorenzo

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To: Edwin S. Fujinaka who wrote (101)6/28/2000 9:00:00 AM
From: Glenn Petersen
   of 246
DVIN delayed again:

Possible delay in IPO date
for Divine
Analyst questions offering's strength

By Bruce Japsen
Tribune Staff Writer
June 28, 2000

Andrew "Flip" Filipowski's Divine Interventures Inc.
may delay its initial public offering yet again.

The offering of the Lisle-based Internet holding
company, which had been expected to price Thursday
and begin trading Friday, has already been altered a
number of times.

So even if the delay is only until early July, as is now
expected, analysts say it's yet another setback in a string
of troubles in Divine's effort to become publicly traded.

A Divine spokeswoman wouldn't comment, citing a
Securities and Exchange Commission-mandated quiet
period in preparation for the IPO. She didn't, however,
deny reports that Divine planned to push back the IPO
until sometime next month.

Only three weeks ago, Divine restructured its initial
public offering by changing terms of the deal and
switching underwriters.

"They have made a lot of different amendments," said
Michael Falbo, analyst with, a Boulder,
Colo., firm that tracks initial offerings. "We don't believe
that this deal is in very good shape at all."

But a potential investor who had attended the company's
recent road show told Dow Jones News Service that
the delay most likely wasn't caused by a lack of investor

Divine will need such investor confidence, given that as
part of the June 5 restructuring it raised the price of the
shares to be offered to between $13 and $15 a share
from the earlier price of $6 to $8 a share. The number of
shares offered in the IPO was slashed to just under 14.3
million from 20 million. The restructured IPO is
expected to raise roughly $200 million, up from $140
million in its previous incarnation.

Founded last year by Filipowski, who is arguably
Chicago's best-known computer personality, Divine
quickly became the most high-profile Internet firm in the
area. The company pulled together $400 million in
funding from a range of Chicago business leaders,
Microsoft Corp. and Dell Computer Corp. and
attracted media attention from around the country.

Filipowski led the charge to promote the new firm,
delivering speeches around Chicago about how
old-economy stalwarts must quickly join the Internet
frenzy or face extinction.

Divine, he said, planned to invigorate the local dot-com
scene by investing in a range of young Internet and
high-tech firms. The company quickly founded or
invested in 52 firms and brought in more than 750
employees, including the people at the companies in
which it made investments.

But Divine's rapid growth slowed earlier this year after
the technology-laden Nasdaq stock market plunged,
temporarily sapping investor interest in speculative
technology ventures. Divine laid off 29 employees in
May as it slowed the pace of its new investments and
delayed construction of its new $62.9 million
headquarters campus on Goose Island, which originally
had a move-in date of this fall.

The City of Chicago contributed $14 million in tax
increment financing for the Goose Island project.

Divine's IPO, if it does indeed go forward, should
provide the company with the money it needs to
continue construction at Goose Island as well as expand
and open new offices in Austin, Texas, Seattle and

In addition to the cash infusion from the public offering,
Divine expects to receive $233 million from nine
companies in private placements to take place
concurrently with the IPO. The companies involved in
the private offering include Level 3 Communications,
Compaq Computer Corp. and 360 Networks Inc.

Most technology companies that were preparing public
offerings for this spring and summer have backed off,
either pulling their planned IPOs or going into a holding
pattern to see if the market improves for such ventures.

Divine bucked that trend. In May, the company dumped
its lead investment banker, Credit Suisse First Boston,
which wanted Divine to postpone its public offering. The
firm installed San Francisco-based Robertson Stephens
as its lead investment banker and announced plans to go
ahead with the IPO.

Pitched as a new-economy conglomerate, Divine invests
in Internet firms that do business with each other and
outside clients and rely on the parent company to
provide a range of resources and services. Divine
created numerous service companies to perform specific
functions, including those for public relations (Buzz
Divine), strategic consulting (Experience Divine) and real
estate (DotSpot Divine).

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To: Glenn Petersen who wrote (102)7/6/2000 9:23:10 AM
From: Glenn Petersen
   of 246
From this morning's Chicago Tribune:

Market not looking divine
for tech IPO

By Jon Van
Tribune Staff Writer
July 5, 2000

An initial public offering set for Thursday by Divine
Interventures Inc. looks anything but heavenly to
analysts, and some question whether the IPO will
happen this week as planned.

Tech stocks took a hammering Wednesday as two
software companies warned that their quarterly earnings
will fall short of expectations.

The general jitteriness among investors with tech issues
could be especially bad for Chicago-based Divine
because of an indirect connection to Divine's founder,
Andrew "Flip" Filipowski.

Last year Filipowski sold his previous company,
Platinum Technology International Inc., for $3.5 billion
to Computer Associates International Inc., and
Computer Associates was one of the firms Wednesday
to say its earnings for the quarter will disappoint

Computer Associates' stock dropped $21.75, or more
than 42 percent, on the news. Joining Computer
Associates in taking a beating on Wednesday was the
stock of BMC Software Inc., which also issued an
earnings warning and declined $14.19, or nearly 40
percent. And a ripple effect of wider worries about
mainframe computers saw IBM Corp. shares drop as
well, down $4.81, or more than 4 percent.

Divine is an incubator firm that helps accelerate the
growth of young Internet companies, taking an equity
stake in them. Incubators were hot on Wall Street last
year, but they've cooled in the past quarter, and Divine's
plans to go public in the spring foundered when its lead
investment banker Credit Suisse First Boston advised
against an IPO.

In May Filipowski dumped Credit Suisse and hired San
Francisco-based Robertson Stephens to push ahead. A
late June IPO target was missed, and chances it will
proceed this week appear to be fading.

"I've heard nothing concrete, but the IPO market is
relatively soft now," said Charles Rustein, an analyst with
Rorrester Research in Cambridge, Mass. "It's difficult to
see them getting out in this climate."

Filipowski, who has applied his charisma to give Divine's
IPO a high profile, faces a difficult timing problem, said

"If the market sees him try and try to go public but not
make it, then the likelihood of ultimate failure rises," he

Citing the firm's "quiet period" imposed by the Securities
and Exchange Commission, a Divine spokeswoman
wouldn't comment on the IPO.

Even though Divine has attracted investment from big
name tech companies like Microsoft Corp. and Dell
Computer Corp., it needs the IPO to raise money to
fulfill its business plan. After the public offering was
delayed in the spring, Divine laid off 29 employes and
pushed back plans to construct a new campus
headquarters at Goose Island in Chicago.

"They have a good story," said Ullas Naik, senior
vice-president for research at First Albany Corp. in
Boston. "But the market for incubators isn't sturdy just

Two companies similar to Divine—CMGI Inc. and
Internet Capital Group—did go public last year when
investor enthusiasm for the Internet was high. Since
reaching high points late last year, both firms have seen
their share value diminish by more than 75 percent. That
in itself could spook potential investors in Divine.

"They're in trouble either way they go," said Jeff
Hirschkorn, senior marketing analyst with New York
based "It's a good concept and six months
ago, it would have done well in the market.

"But right now the market is terrible. Still, the longer they
wait, the more that hurts them."

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To: Glenn Petersen who wrote (103)7/6/2000 2:34:14 PM
From: Mr. Park
   of 246
Not bad assessment of DVIN

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To: Mr. Park who wrote (104)7/6/2000 5:31:44 PM
From: gladman
   of 246
No IPO for DVIN, just saw a news flash... they don't have SEC clearance.

This is becoming a comedy of errors with DVIN as the keystone cops.

How hard ARE they trying to screw this up?

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To: gladman who wrote (105)7/7/2000 5:35:42 PM
From: Glenn Petersen
   of 246
DVIN cuts range:

Friday July 7, 3:26 pm Eastern Time

Divine Interventures to cut IPO range - underwriter

NEW YORK, July 7 (Reuters) - Divine Interventures Inc., which invests in Internet-related companies, is cutting the price range of
its highly anticipated initial public offering to $9 to $10 per share, lead underwriter Robertson Stephens said on Friday.

The lowered price range will be filed with the Securities and Exchange Commission on July 10, Robertson Stephens said. The
underwriter declined to give further details.

When Divine last filed with the SEC on June 29, it said it planned to offer 14.285 million shares in an expected pricing range of $13 to

When the Lisle, Ill.-based company initially filed its IPO plans with the SEC in February, it planned to sell 50 million total shares in a range of $6 to $8 per share. In early April, the company added 15.9 million shares to the offering based on demand. On June 5, the company said it planned to sell about 36 million shares, with 14.28 million being sold to the public at $13 to $15 per share. Credit Suisse First Boston had been lead underwriter until Robertson Stephens took over.

The company plans to sell its shares on the Nasdaq under the symbol ``DVIN'' (NasdaqNM:DVIN - news).

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To: Glenn Petersen who wrote (106)7/7/2000 9:29:52 PM
From: The Other Analyst
   of 246
Looks to me like this is an issuer who is very particular about the IPO terms and wants to squeeze every bit he can out. He didn't like CSFB telling him he should wait, so he went to Robbie Stephens when they said they could get a higher price. Turns out they couldn't. This guy is not out to make money for the shareholders. I would avoid it.

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To: The Other Analyst who wrote (107)7/8/2000 2:01:36 AM
From: Sr K
   of 246
I would not avoid it ...

Divine, which takes significant investments in Internet
companies and offers them a suite of legal, real estate
and public relations services, has already started shifting
and cutting back its ambitious plans.

... I'd hope they get the offering off, and then I'll follow it closely - it has the potential to be one of the all-time great shorts.

Where is the value added in providing legal, real estate, and pr services? This is an unwieldy mess, set up at a time of an Internet flurry and bubble. It makes no sense to me.

There are private companies, similarly positioned, better focused, with technology and marketing that sets them apart, valued at 1/4 to 1/8 of this bloated company. By this comparison I think a fair value is about $2.00-$3.50 per share.

Anything over $14 is like putting a bullseye on the stock.

One more thing. The name ... the "inter ventures" I get, but the "divine" is so 1999, and if they think they need outside help from above, why would anyone want to invest in it down here?

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