01/27/2010
The Receivables Exchange Announces Company Has Closed $17 Million In Financing From Bain Capital Ventures And Other Top Venture Capital Firms
Funding round enables company to add at least
60 new jobs averaging more than $70,000, plus benefits
NEW ORLEANS, La. -- Today, Gov. Bobby Jindal joined The
Receivables Exchange Co-founder and President Nic Perkin, The
Receivables Exchange Co-founder and CEO Justin Brownhill, Bain
Capital Ventures Managing Director Jeffrey Schwartz, Redpoint
Ventures Founding Partner Jeff Brody and Louisiana Economic
Development Secretary Stephen Moret to announce The Receivables
Exchange, or The Exchange, has closed $17 million in a Series C
financing round led by Bain Capital Ventures, one of the top
venture capital firms in the U.S. The financing round also included
participation from other top venture capital firms, including
re-investment from Redpoint Ventures and Prism Ventureworks.
With its Series C funding in place, The Exchange plans to more
than double its existing Louisiana workforce by adding at least 60
new jobs averaging more than $70,000, plus benefits, over the next
three years. The Receivables Exchange will also use the funding to
further scale its operations and sales activities and to
significantly expand its marketing, business development and
corporate partnership efforts. The company's goal is to drive
maximum awareness of its proven exchange-based receivables finance
model among the millions of small and midsize businesses in the B2B
sector. The Exchange will also continue to evolve its
patent-pending trading platform and optimize customer lifetime
value. LED estimates that the 60 new direct jobs will result in the
creation of approximately 74 indirect jobs, which means the total
impact of today's announcement is the creation of more than 130 new
jobs in the New Orleans area.
Gov. Jindal said, "The Receivables Exchange has been one of the
most exciting entrepreneurial success stories in post-Katrina New
Orleans, and in the midst of a difficult national funding
environment, one of our state's most innovative companies has
attracted a major investment from one of the top venture capital
firms in the world, Bain Capital Ventures, as well as other top
firms.
"We're committed to creating a New Louisiana, a new frontier for
business opportunity, a place in which more companies like The
Receivables Exchange will choose to locate and to grow, creating
lots of good jobs in the process. As a result of our commitment to
supporting high-growth, high-tech companies, Louisiana's best and
brightest will not have to seek jobs beyond our borders.
Entrepreneurs can start and grow their businesses in New Orleans
and other Louisiana communities, rather than Charlotte, Austin or
Atlanta. They can pursue their dreams at home because of companies
like The Receivables Exchange that realize the competitive
advantages of growing a business in Louisiana."
Harvey Pitt, CEO of Kalorama Partners and former chairman of the
United States Securities and Exchange Commission (SEC), also
participated in the announcement. Emphasizing the national
significance of The Exchange and its role in increasing access to
capital for small- and medium-sized businesses that are the engine
of our country's economic growth and innovation, Pitt noted, "In
these difficult times, The Exchange offers a creative,
uncomplicated and expeditious method for any business to raise
capital and fund continued growth and expansion. I am very
impressed with the innovation and liquidity The Exchange brings to
traditional financing needs of modern business."
"Cash flow is one of the biggest considerations for most
companies -- and one of the greatest barriers to improving
operating and financial performance," said Schwartz. "The
Receivables Exchange is a game-changing innovation that we believe,
based on our experience with hundreds of portfolio companies, can
revolutionize the way businesses manage their cash flow and fund
their day-to-day operations. The model has been proven, and The
Receivables Exchange is extremely well-positioned to continue its
growth and to integrate with other leading business finance
applications. In the past year, this exceptional management team
has delivered exponential growth and instituted the sound
management practices we look for in our companies. We look forward
to working with the team to solidify their stronghold and build a
new capital marketplace."
"We were fortunate to have significant interest from numerous
well-respected, high-profile venture investment firms," said
Brownhill. "Bain immediately stood out because of their track
record of establishing long-term market leaders, particularly in
the capital markets arena. And their reputation of serving as a
fully committed strategic collaborator is precisely the type of
premier partner that we were seeking as we continue to scale and
enhance the model. We are thrilled to have such a remarkable firm
on our team."
"Receivables financing is one of the oldest financing models in
America and yet, until now, it has not been delivered as a viable,
flexible cash management solution for mainstream American
companies," said Brody. "We firmly believe that The Receivables
Exchange is uniquely positioned to transform the $18 trillion
receivables finance marketplace by further scaling their open,
efficient and competitive marketplace. We look forward to continued
success in our partnership with The Receivables Exchange, and we
are excited to welcome Bain Capital Ventures as a new partner."
The Receivables Exchange pioneered the online receivables
financing marketplace in 2008 with the launch of its proprietary
receivables trading platform. The receivables finance industry
represents an $18 trillion marketplace. Most companies have more
than 60 percent of their working capital tied up in accounts
receivable, limiting their ability to fund the growth of their
businesses and contribute to the growth of the U.S. economy. On The
Receivables Exchange, businesses are able to sell their accounts
receivable at competitive terms to a global network of accredited
institutional investors that compete in real time to purchase
them.
"We take great pride in returning America's small and midsize
companies back into the driver's seat of their business financing,
allowing them to control when and at what price they increase their
working capital," said Perkin. "Over the past year, we were able to
bring millions of dollars of competitively priced capital to
hundreds of companies in the B2B sector. With this next round of
financing, we look forward to helping hundreds of thousands of
companies increase their financial performance by revolutionizing
the way they manage their working capital.
"When considering where to launch and grow The Receivables
Exchange, New Orleans won out over several other cities because of
its quality of life factors, attractive financial incentives and
other competitive advantages. New Orleans' globally recognized
brand and its cost of living have helped us recruit and maintain
talented staff, while the cost of starting and running a business
has helped us operate at a fraction of the cost of other major
cities."
The Exchange plans to use the state's Quality Jobs and Digital
Interactive Media Tax Credit programs to help finance its rapid
growth over the next several years.
"Like most states, Louisiana has long faced a challenge in
attracting sufficient early-stage capital to support our innovative
entrepreneurial companies," said Moret. "But our venture capital
environment now is trending sharply in a positive direction as
companies in our state have begun attracting investments from
top-tier venture capital firms over the last year, including
Kleiner Perkins and Bain Capital Ventures. Moreover, today's
announcement also provides another example of the catalytic
potential of our recently enhanced digital interactive media tax
credit program."
About The Receivables
Exchange
The Receivables Exchange (www.receivablesXchange.com) is the world's first
online marketplace for real-time trading of accounts receivable.
The Receivables Exchange is changing the landscape of small
business financing by providing a new dimension in working capital
management. The Exchange connects a global network of accredited
institutional investors (Buyers) to the nation's millions of small
and midsize businesses (Sellers) in search of capital to grow their
businesses. Buyers get direct access to an $18 trillion new
investable asset; Sellers get access to a new competitive working
capital management solution by having their receivables bid on in
real time by multiple Buyers. For more information, visit www.receivablesXchange.com.
About Bain Capital Ventures
Bain Capital Ventures (www.baincapitalventures.com) is the Boston-based
venture capital affiliate of Bain Capital, which has approximately
$65 billion of assets under management worldwide. Founded in 1984,
Bain Capital and its affiliates have made investments in more than
300 companies. The firm's history of investing in early stage
companies also dates back to 1984, having made over 125
venture-stage investments since inception including such companies
as LinkedIn, Staples, SunGard, DoubleClick, Instinet, SolarWinds,
ProfitLogic, Archer Technologies, Shopping.com, Taleo, m-Qube,
Aspect Development and Gartner Group. In 2001, Bain Capital
Ventures was formed as a separate arm of Bain Capital to focus
exclusively on growth investments. Bain Capital Ventures currently
has approximately $1.5 billion in assets under management.
About Redpoint Ventures
Redpoint Ventures focuses on partnering with and funding
innovative companies that have the potential to define, lead and
change industries. Redpoint partners have many decades of
experience and success in technology investing; combined with this
foundation, the firm is able to leverage a thriving network of
entrepreneurs, partners and industry experts to accelerate building
market-leading companies. Redpoint (www.redpoint.com) was founded in 1999 by
partners from two of the top firms in the venture capital industry
and currently has over $2 billion under management. The firm is
headquartered in Menlo Park, Calif., with offices in Los Angeles
and Shanghai, China.
