San Mateo, CA.—June 19, 2000—NetLedger Inc., the leading application service provider (ASP) that enables small businesses to run their companies totally online, today announced that it has secured $20 million in financing. StarVest Partners L.P. led the round of funding, with Automatic Data Processing Atlantic Inc. (ADP) and PaineWebber Group Inc. participating significantly. Additional participants include the Co-Investment 2000 Fund L.P., Internet Assets Inc., Invest Inc., Larry Ellison, Oracle founder and chairman, and other private investors. Deborah Farrington, founder and co-chairman of StarVest Partners L.P., will join NetLedger’s board of directors.
NetLedger plans to use the capital to:Expand marketing efforts to accelerate customer acquisition. Broaden NetLedger distribution channels via strategic alliances. Continue developing its leading-edge technology and services. Ellison provided NetLedger with seed capital and is chairman of NetLedger’s board of directors. He has continued his support of NetLedger in this round of funding.
”This investment testifies that we’ve successfully delivered our promise as an ASP that enables small businesses to automate their business processes starting with accounting,“ said Bill Mirbach, president and chief executive officer of NetLedger, Inc. ”We’ll use this round of financing to cement our relationship with strategic partners who offer distribution and technical skills. Our lead venture capital group, StarVest, importantly is well versed in finance as well as operations.“
By harnessing the power of the Internet, NetLedger provides its customers with feature-rich, easy-to-use accounting and business management applications. Designed for companies with fewer than 100 employees, NetLedger’s accounting solution costs $4.95 per month per user with unlimited transactions. NetLedger handles functions ranging from accounts receivable to sophisticated financial analyses, while providing automatic data backup, automatic software upgrades and security. NetLedger delivers the reliability and scalability of Oracle 8i, the Internet standard for databases. The service is encrypted to ensure security.
”We are pleased to have led the first round of institutional investment in NetLedger,“ said Deborah Farrington, founder and co-chairman of StarVest Partners L.P. ”NetLedger has a strong business model that capitalises on both the growth of the small-business market segment and the trend toward utilising ASPs for the technology, security and ease of use they deliver. The combination of venture capital and strategic backing in the investor syndicate will help power the company’s growth. StarVest will contribute its industry expertise, knowledge and contacts to the NetLedger board and assist the company’s efforts to maximise employee, customer and shareholder value.“
”NetLedger was first to market with an online accounting solution that has tremendous appeal to the small-business owner,“ said Bud Angelus, president of ADP’s Emerging Business Services Division. ”It is easy to use, extremely affordable and offers remote access to employees, customers, suppliers, as well as accounting users. Seamlessly integrated with EasyPayNet, our new online payroll service, NetLedger enables small businesses to focus on their core competencies of running their businesses.“
”NetLedger offers a robust accounting solution through which it provides the key business applications that enable small businesses to handle these critical functions online,“ said Thomas Naratil, PaineWebber senior vice president and a member of the firm’s e-finance investment committee. ”Our small business clients have indicated that finding a solution like NetLedger is critical to increasing their productivity and business growth.“
About StarVest Partners L.P.
StarVest Partners L.P., headquartered in New York City, is a $130 million venture capital partnership established to invest in business-to-business e-commerce, outsourced business services including network and system integrators and web-related information technology companies. StarVest adds value to its portfolio companies through its partners’ extensive experience in private equity investing, operations and service on boards of directors.
Automatic Data Processing Inc. (NYSE:AUD) is one of the largest global providers of computerized transaction processing, data communications and information services, with more than $5 billion in revenues and more than 450,000 clients worldwide. ADP’s Employer Services (ES) Division is a leading provider of integrated business administrative solutions that help clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP ES’ offerings include both traditional and Internet-based outsourcing products and services, giving clients the ability to select from ADP’s comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRIS, benefits administration, time and labor management, retirement plan services, online recruiting, and pre-employment screening. About Paine Webber Group Inc. PaineWebber Group Inc., together with its subsidiaries, serves the investment and capital needs of a worldwide client base. The firm employs 20,008 people in 318 offices.
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