Friday February 23
TruExchange Closes $5 Million First Round of Funding Led by BancBoston Ventures
Lexington, MA., Feb 23, 2001 --TruExchange, Inc. ("TruExchange''), provider of an evolutionary online exchange software specializing in bid/ask open market systems, has closed its first round of venture funding. BancBoston Ventures led the round, with participation from Kodiak Venture Partners, the venture fund that provided seed funding for TruExchange in March 2000.
"Net market makers are eager for ways to make their exchanges more efficient and bring liquidity to the market. TruExchange does just that,'' said Peter Roberts, a Managing Director at BancBoston Ventures. "Their technology impressed us, as did their visionary grasp of the market and ability to execute on a well-defined business strategy.''
"We are pleased to have the backing of these two highly successful venture groups. BancBoston Ventures' decision to invest in TruExchange is a confirmation of our value to the market. Our solution is unique and meets many of the needs of B2B exchanges and commodity brokers that, thus far, other providers have not been able to meet,'' said TruExchange CEO George McQuilken.
"We are excited about continuing our financial and strategic relationship with TruExchange. TruExchange has entered the market at the right time as a broad spectrum of companies are now focused on the real economic value of e-commerce'', said Jim Furneaux, Founding Partner of Concord, Massachusetts-based Kodiak Venture Partners. "According to IDC, the value of business-to-business (B2B) eCommerce transactions that flow through marketplaces will rise to $1.2 trillion by 2004. Because eMarketplaces will be a major form of B2B eCommerce, companies of all sizes will have to develop the capability to link to them.''
TruExchange will use the investment money for continued product development, expansion of sales and marketing programs, and company growth.
About TruExchange, Inc.
TruExchange, based in Lexington, Mass., is a software and services provider for B2B marketplaces. The company's goal is to boost the liquidity of vertical hubs by offering real-time transactions of goods and services via an open market exchange model. TruExchange's proprietary technologies offer the most efficient mechanisms to buy and sell goods online, thereby facilitating truly liquid digital marketplaces across a broad spectrum of industries. For more information visit the TruExchange web site at www.truexchange.com.
About our Investors
BancBoston Ventures, the venture capital investment arm of FleetBoston Financial (NYSE: FBF), has provided expansion capital to emerging growth companies since 1959. Its sister company, BancBoston Capital, provides later stage capital options from equity sponsorship to co-investment and mezzanine capital for buyouts, recapitalization and expansion of mid-size companies. Supported by offices in Boston, Palo Alto, London, Hong Kong, Singapore, Buenos Aires and Sao Paulo, BancBoston Capital and BancBoston Ventures have invested roughly US$4 billion in more than 500 companies. BancBoston Ventures-backed companies include Allaire, Arbinet, Clareon, Incentive Systems, Internet Capital Group, Monetrics, Netmind (Puma), Trebia Networks, Versata, Viewlocity and Watchfire. For more information on BancBoston Ventures, visit www.bancbostonventures.com.
Kodiak Venture Partners is a leading Concord, Massachusetts-based venture capital firm providing the capital network and market expertise to launch high growth information technology companies. Kodiak has backing from some of the leading corporate and financial partners such as Cisco Systems and Goldman Sachs. Kodiak specializes in building companies from their inception through market dominance. The partners have led investments in Aironet, Skystone Systems, Chrysalis-ITS, Philsar Semiconductor, Sedona Networks, InterSense and Extreme Packet Devices among others. For more information, please visit www.kodiakvp.com