Tuesday December 5, 2000
TruExchange Announces Intention to "Evolutionize" B2B eMarketplace Technology
New software and services provider for B2B marketplaces shares its vision and determination to set the standard in online B2B trading
Los Angeles, Calif., December 5, 2000 -- TruExchange, Inc. ("TruExchange''), provider of an evolutionary online exchange software specializing in two-way, bid/ask, continuously-clearing, open market systems, today makes its official debut at the Net Market Makers Ground Zero 4 event in Los Angeles. The company founders are formally introducing the management team today and will discuss their vision for the future of the company and its customers. The company will demonstrate TruMarketTM, the most flexible trading engine on the market today, and will explain how a TruExchange-based marketplace gathers liquidity by offering adaptive support for multiple trading models, including bid/ask, auctions, RFQs, and structured negotiations, and by automatically reaching out to dormant market members to invite them to participate.
"Currently, net markets are mired in recurring and complex inefficiencies in buying and selling goods and services," said TruExchange President and Founder Michael Fertik. "TruExchange can help existing exchanges and new net markets increase profitability by actually creating liquidity. We do this with a real-time, accurate, and efficient exchange engine that lets online commerce happen fast. We're simply giving digital marketplaces what they have wanted from the beginning: B2B markets with the liquidity of stock markets."
TruExchange is entering the market at a time when IDC forecasts, "emarketplace services spending will increase from $503 million in 1999 to $10.1 billion in 2004, for a robust compound annual growth rate of 82%." TruExchange is well positioned to take advantage of that incredible growth.
"Our latest research indicates that 20% of US B2B eCommerce in 2004 will be conducted through dynamic pricing systems, up from less than 5% in 2000," said Richard Villars, Vice President of Internet and eCommerce Strategies at IDC. "Companies like TruExchange will play a key role in providing the scalable, reliable solutions that ensure liquidity for the dynamic bid/ask open-market offerings of eMarketplaces and Industry Exchanges."
The company's technology is the brainchild of three men educated at Harvard and Massachusetts Institute of Technology (MIT). They each have previous experience with successful Internet start-ups and the foresight to recruit a highly knowledgeable senior management team. With extensive experience in both finance and technology, and hailing from well-respected institutions such as JP Morgan, IBM, Intel, Siemens, Lucent Technologies, and the MIT Media Lab, the combined team has the vision and know-how to address the complex needs of net market makers.
TruExchange announced its first customer in August. Ottawa-based Dynasty Components, Inc. (TSE: DCI) selected TruExchange's solution for the DCIexchange, a semiconductor trading portal that will bring buyers and sellers of semiconductors together on a global scale in a commodity market environment. Since then TruExchange has been working closely with DCI to implement the technology and they anticipate launching the portal in Q1 2001.
"Our goal at TruExchange is to power the most liquid and efficient marketplaces in the world," said Chief Executive Officer George McQuilken. "Net Market Makers are eager for the technology we can provide. Our trading engine is flexible, dynamic, fast and efficient. DCI chose TruExchange for their semiconductor trading portal because our solution attracts liquidity."
TruExchange was founded in April 1999 and received seed funding from Kodiak Venture Partners.
Senior Management Team
TruExchange President and Founder Michael Fertik, helped launch BrandStamp, a leading online product registration service, in 1999. He was an integral force in the early formation of the company and helped shape their focus and product specification. He lectures at Harvard and Dartmouth and writes on topics that range from B2B to the jurisprudence of war crimes.
Noah Lehmann-Haupt, Chief Strategy Officer and Founder, has worked on the trading floor of the Equity Derivatives Group at J.P. Morgan in New York City, where he developed a sophisticated data analysis tool for option volatility surfaces. In 1995,he started NumisNet, the first specialty online auction site on the World Wide Web devoted to rare coins.
Raefer Gabriel, Chief Technology Officer and Founder, was most recently an instrumental member of an MIT Media Lab team pursuing innovative design in quantum computing. He previously worked as a securities analyst at Oracle Partners, L.P., a New York-based biotechnology hedge fund, and served as project manager and lead developer of several large-scale programming projects at the Strang Cancer Research Center.
Chief Executive Officer George McQuilken was founding CEO of four companies, including Security Dynamics (now RSA Security). He is also an angel and venture financier who invests both independently and through partnerships in several major funds.
Director of Business Development Gerard Kiley has more than twenty years experience in the Information Technology industry, including significant experience in building System/Network Integration and consulting organizations, developing marketing programs, and solution sales. Most recently Mr. Kiley spent ten years at Siemens, where as director of business development he ran the Network Integration Services Group.
Director of Engineering Bob Thomas has more than twenty years experience in the delivery of highly successful and complex software and hardware products and in software development methodologies. Prior to TruExchange, Mr. Thomas spent more than ten years at Stratus Computer and Ascend Communications, which were ultimately acquired by Lucent Technologies.
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.