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As promised, we continue our series on the companies that keep Silicon Alley humming, complete with bold predictions on how they will rally the Internet storm.

CapitalIQ
One of a growing number of smart start-ups in the New York region that recognize opportunities to provide technology and services to the financial services industry here and, increasingly, across the river in Jersey City. CapitalIQ makes hosted applications that help investment bankers manage far-flung groups and workflow on deals and client service. Unless you've been an investment banker, it's tough to appreciate just how much information and knowledge falls through the gaps between each group assigned to a deal. The guys running this outfit were investment bankers and have built a platform that pipes in market intelligence and tracks coverage across every group, be it corporate finance block and tackle stuff, M&A, underwriting and more.

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Hosted applications for highly secretive functions like M&A can make banking types nervous about security, which is why CapitalIQ will keep branching into behind-the-firewall installations. But with clients such as Merrill Lynch and FleetBoston using the product, and the likes of JP Morgan Chase's LabMorgan nurturing the company, CapitalIQ is likely to see its exit: a sale to a major player.

On2 Technologies
Like many Alley companies that went boldly into the public markets back in the heyday of Internet stocks, On2 has been struggling with cash flow issues and a depressed stock price. But its VP4 codec video compression technology is a diamond in the rough, offering DVD quality video streaming below the 1 MB barrier, helping to lower the cost to stream by 15 to 20 percent. This outfit is finally getting more notice among set-top box and chip makers who understand that the broadcast network effect only increases the costs to scale broadband. Better compression is the key to wide adoption of broadband and On2 has it.

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A licensing deal with RealNetworks could bring in much-needed cash as set-top boxes and chips sign on with On2's VP4 codec. Audio compression deals could result from this alliance, and well, with more compression competition breathing down its neck, it may have no choice.

HotBar
Personalized skins for Web browsers? Tech snobs like to sniff that making a business with browser technology is, like, so 1995. Well sniffy, there's money to be made in designing toolbar skins (which isn't as easy as it looks) and HotBar is making it, thanks to the third-party deals it strikes with e-commerce outfits that are loaded on the 13 million skins downloaded thus far. With R&D facilities based in Israel, HotBar has a short-cut to deals with Internet players in Europe and Asia. A new version of its technology has some buzz from early trials and could help boost more licensing income when it's released in a few months.

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Now that it's fixed that glitch with Yahoo! that knocked its skins out when users downloaded Yahoo's instant messenger client, HotBar can stay out of the way of the Browser Daddies and concentrate on helping them add more than functionality and fun to browsers. The question is, has HotBar landed on AOL's deal-making radar, or in its cross-hairs? We think the former.

IWay Software
Formerly the middleware technology group of Information Builders, iWay is the progeny of New York's biggest software outfit. And with a name like CEO Gerald Cohen attached to it, iWay has quite the leg up on its competition in middleware and integration technology jobs. Cohen, a 25-year vet of technology and software, knows where tech is headed because he knows where it's been. Oh yeah, iWay also developed its technology with IBM (if there was any doubt about its prospects) and has ten years of integration work under its belt.

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Integration jobs take a bit longer to win these days but back-end work is only in its infancy, what with the legions of companies (banks especially) with creaky back-end systems that date back to the Johnson Administration. iWay has strong heads that know XML and middleware for wireless devices, and a strong roof over its head provided by parent company Information Builders. This spin-out is off and running.

Safewww
While it toils away making online identify protection and authentication products for businesses and consumers, seasoned executives such as Diana Kelley are also joining the cause to help it win more sales. The New York company was formed a couple of years ago by Israeli Internet security entrepreneurs and maintains R&D offices in Israel, a hot area for technology innovation. Its third-party technology can be used with banking, B2B exchanges, store cards, gaming, and, what was that other one - oh yes, digital music. We smell opportunities. Guarantee this might happen:

As VP of security technology, Kelley knows tech and authentication from her work with Synamtec, Hurwitz Group and KMPG Consulting. Her biz development skills will come in handy to address that dubya dubya dubya part of the company's name. Doesn't exactly roll off the tongue.

Everydayoffice
New company run by folks who know back-end office systems and the open source software movement. This start-up helps small business look like big businesses on the Internet by providing back office systems and integrated business services. The two-year-old company uses open-source technology to develop applications, server platforms and databases for little businesses.

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Right now, staying alive is the first order of business for start-ups with new economy offerings. But with a focus on smaller businesses and with a slow-growth strategy in the short term, EverydayOffice will address how it prices its tools to make sure that growth isn't too slow while it helps the little guy improve business margins.

Coming Friday: The conclusion of our 'Companies to Add to the Watchlist' series.