First Index, which offers manufacturers an internet-based procurement service, has received $10.8 million in new in new investment from a consortium of leading UK and US venture capital funds.
First Index, a company that enables manufacturers to quickly and easily find suppliers and procure specialised custom-made engineering components via the internet, has received $10.8 million in new investment from a consortium of leading UK and US venture capital funds. The consortium comprises LMS Capital, Bessemer Venture Capital Partners (BVP) and Quester. With an internet-based product already showing rapid growth and a profit in the UK and USA, the software company will use the funds in two ways.
As well as developing a raft of new e-procurement services it plans to substantially expand it's existing business in the USA and to swiftly penetrate new continental European markets.
Two additional non-executive directors will join the board of First Index as it enters its new growth phase.
They are Michael Bennett of LMS Capital and Felda Hardyman from Bessemer.
more/- Michael Bennett of LMS Capital said: 'First Index has developed an industry-leading sourcing service through a close understanding of customer and supplier requirements for custom-made parts.
We believe First Index has developed a highly successful business model that offers real value to both buyers and suppliers.
This has been reflected in transactions already measured in billions of dollars a year, a performance that exceeds most B2B exchanges.' For First Index, the company's founder, Hans Wigart, said: 'The automated sourcing service we were first to offer is based on an existing and highly successful product that lends itself perfectly to online operations.
The internet could have been designed for the service and we are already experiencing significant demand since launching the online version, based on popular Microsoft technology.
By expanding our international presence and by keeping abreast of the latest technological developments, we can stay at the forefront of this growing market sector.' Formed in 1992, First Index has been helping buyers to source custom-made components in several key manufacturing industry areas.
First Index products help buyers in manufacturing companies to reduce procurement costs by quickly finding the best financial and technical solution to their requirements.
In turn, it helps suppliers to find profitable work and to save on their companies' marketing and sales resources.
Since January 2000, over 7,000 buyers have posted 28,000 requests for quote and requests for information worth an estimated $10bn in business value to those customers.
In July 2000 the company launched 'findFAST Online', an internet version of its paper directory and CD-based sourcing service for custom-made components.
Over 1,700 manufacturers have accessed the service since that time.
Finding and collaborating with suppliers via the internet can achieve major savings in time and costs by speeding up the process of finding the best match and completing the transaction very quickly with little or no capital expenditure.
Users of findFAST Online are evenly divided between Europe and the USA, and are increasing at a rate of over 300 new customers per month.
LMS Capital is the venture capital arm of London Merchant Securities plc (LMS) an active venture investor in both the UK and US.
LMS Capital has significant experience in communications, internet infrastructure, software and e-commerce, and a successful record of investment in early-stage technology ventures for over 15 years.
In recent years, LMS Capital has increased its investment activities in high-growth technology and e-commerce ventures in the UK.
Recent e-commerce successes include the US IPOs of Commerce One, InterTrust Technologies, Interwoven, Broadbase Software and Chordiant Software.
In each case LMS Capital was an early-stage investor.
The LMS Capital UK software and e-commerce portfolio includes Elateral, Genient, GroupTrade, Magex, and Stepstone.
Bessemer Venture Partners is one of the oldest US based private venture capital firms.
In 1911, Henry Phipps established what was to become Bessemer Securities Corporation (BVP's principal limited partner) as an investment firm for the benefit of his descendants, starting with his share of the proceeds from the sale of Carnegie Steel.
Since its inception, a central component of Bessemer Securities' charter has been to invest in and help build innovative, high-growth companies.
Some of the companies that Bessemer helped establish or build in the early days includes W.R.
Grace, International Paper, and Ingersoll-Rand.
Today, Bessemer Venture Partners continues this tradition and invests approximately $400 million each year, while other Bessemer entities manage more than $2 billion of investments in public and private non-venture capital assets.
BVP has offices in California, Massachusetts and New York and the company's efforts are entirely devoted to financing and building young companies.
Founded in 1984, Quester is an independent UK venture capital company specialising in unquoted growth companies.
Quester raises funds from institutions and individuals and has more than GBP300 million under management.
The company focuses particularly on sectors such as software, internet enabling technology businesses, telecoms services and equipment, semiconductors, optical networking, new media, healthcare, life sciences and new materials.
Quester manages institutional venture capital funds supported by international investors, an e-commerce fund for CGNU, the major insurance group, the University Challenge Funds for Oxford and Bath and Bristol Universities, the Isis College Fund, focused on technology companies emerging from Oxford University, as well as four venture capital trusts, Quester VCT plc, Quester VCT 2 plc, Quester VCT 3 plc and Quester VCT 4 plc.
Both its institutional funds and its venture capital trusts have strong track records.
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