I often remind my clients that, just like the rest of us, high-tech businesses are subject to the rules and laws of misleading advertising. As new service delivery models and technologies proliferate in the market, the phrases we coin and the terms we use to describe them often evolve into de facto standards. And where there is a perceived standard, liability for inaccurate marketing follows.

In the consumer sphere, “high definition” tv is the current target. In my view, “software as a service” is not far behind. There is a perception that having a SAAS-delivered solution tells customers and investors that you’re on the bleeding edge; “SAAS” is this year’s “ASP”. But are all SAAS providers actually providing SAAS? The answer depends on whether SAAS has the market perceives the term as a generic description of service delivery or something more.

Maintenance fees should not exist in a SAAS model, for example. The essence of SAAS is access to the best and the latest version of the application, all the time. Similarly, is it fair to call other remote desktop technologies SAAS? Is the customer receiving the same perceived benefits (including scalability and security)in those cases as it would if it were paying for a mutli-tenant, scalable application that is hosted and managed in a robust environment? Time will tell.

Venture Intelligence recently spoke to Ashish Dhawan who over the last two years has been sounding a skeptical note on unsustainable valuation levels linked to the ever-inflating public markets. What does he feel about the current investing climate when the public markets have corrected significantly? Read on…

Venture Intelligence: The recent correction in the capital markets justifies your

Iovation, a Portland, Oregon company that aims to track and prevent online fraudsters, has closed off its first round of funding at $15 million.

The basic idea behind Iovation’s product is keeping track of millions of computers to pinpoint the few that are used for fraudulent activities, a scheme the company calls “device reputation fraud management.” Iovation sells its software to online retailers, banks, social networking sites and others.

Of the funding, $10 million was closed last November, provided by Intel Capital. The additional $5 million came from SAP Ventures and European Founders Fund.

See our story about this stealthy Palo Alto, Calif., startup in today’s daily briefing at VentureBeat LifeScience.

Bubble Motion received $14 Million in funding from Sequoia Capital India, Comcast Interactive Capital and NCD Investors. Bubble Motion provides a click, talk, and send voice messaging service for mobile phones.

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Atari said it received a delisting notice from Nasdaq. The struggling video game maker said it received a “staff determination letter” from Nasdaq that it isn’t compliant with exchange’s rules and is therefore subject to delisting.

In December, the company had received a notice saying that it needed to have a market capitalization of $15 million in the 10 days preceding March 20 in order to be compliant. This is an ill omen for the Electronic Arts veteran David Gardner now heading Atari, as well as Phil Harrison, the former head of Sony’s worldwide game development who joined Atari last month as head of game development. (our coverage).

Atari plans to appeal, noting that its French parent Infogrames Entertainment plans to acquire all of the outstanding shares of the U.S. division.

SpongeFish is a how-to video site where you can create, comment, rate and compete with others. SpongeFish received $2 Million and investors have not yet been disclosed.

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See our story on this Santa Clara, Calif., medical-device maker in today’s daily briefing at VentureBeat LifeScience.

Started in 2004 as a collaborative project between agricultural giant Cargill and Materia, a catalyst maker based on IP from the California Institute of Technology, Elevance Renewable Sciences has spun off to commercialize a promising technology that can transmute natural oils into other chemicals.

Elevance is capable of using a variety of feedstocks like soy and corn oil to form a variety of other chemicals, much as crude oil has been used for decades. The company says its products, which will include waxes, antimicrobials, derivative oils and lubricants, among others, are safer than crude oil-based alternatives.

The $40 million funding was led by TPG Growth and TPG Biotechnology Partners. Elevance is based in Lisle, Illinois.

Citing the need for consumer market investments in China, Granite Global Ventures has raised another $200 million for its third fund, which was originally closed off at $400 million in 2006.

Granite has traditionally invested in technology and emerging sectors, but plans on expanding to some sectors in China that are already well established in the United States. They won’t be alone; as we reported late last year, Kleiner Perkins has invested in a Chinese shirt factory and Sequoia Capital backed a farm in the country.

The firm also added brought on four partners from SIG Capital, which in turn is the managing firm behind Venture Star Shanghai, an affiliate of Granite Global. The four are Zhuo Fumin and Jessie Jin, who are will be managing partners at Granite, and Michael Kuan and Steve Chu, who will be venture partners.

Granite Global has about $1 billion under management, including investments from its first two funds.