Affinity Express Secures $3 Million in Equity Financing to Fuel Continued Growth of Outsourced Graphic Services
Press release from the issuing company
Chicago, October 6, 2005 -- Affinity Express Inc., the leading provider of outsourced graphic services for the printing, embroidery and promotional products industries, today announced that it closed a $3.0 million financing lead by Ticonderoga Capital. Flagship Ventures and Hercules Technology Growth Capital, Inc. also participated in the round. The company further announced that Tyler Wick of Ticonderoga Capital has joined the Affinity Express board of directors. The additional $3.0 million in equity brings the total to over $16 million in capital which has been committed to achieving the company’s growth.
According to Affinity Express Chief Executive Officer James R. Daleen, the new funding will be used to support rapid customer growth by tripling the size of the company’s operations center in Pune, India, extending sales coverage and accelerating technology development. Jim Daleen explained, “With the tremendous increase in sales we’ve experienced in the past year, we need to ensure that our clients will continue to enjoy the same high-quality, fast and cost-effective support for their graphics needs while we scale our business.”
Affinity Express formats graphics, photos and written copy to produce digital, production-ready files for printing, posting to web sites, embroidery, screen-printing or other output, covering the workflow between the concept and printing or production. With these three main categories of service, Affinity Express enables organizations in the printing, promotional products and embroidery industries to outsource the production of digital files so they do not have to invest in equipment, software, personnel, training and systems. Furthermore, the company offers services 24/7/365, allowing clients to expand their own internal design capacity under a variable cost structure or per-project basis and realize all the benefits of outsourcing.
One of the main reasons for the growing success of Affinity Express, according to Mr. Daleen is the company’s ability to forecast demand for new services or applications and provide comprehensive solutions that enable clients to capitalize upon and meet the changing needs of end customers. For example, in the retail/quick print industry, desktop publishing is available to customers on a fragmented basis, even within many
national chains and franchises. By introducing reliable quality, standard product pricing and consistency across the entire enterprise, Affinity Express clients can secure print projects at the point when documents are created, driving up profits and capturing a greater share of each customer.
We are pleased to have Ticonderoga Capital as a new investor and business partner,” said Mr. Daleen. “Affinity Express has established itself as a dominant player in a rapidly-expanding industry and now this most recent investment will help us continue to lead and bring an array of offerings to the market.” Tyler Wick, Partner of Ticonderoga Capital, commented, “We are excited to join as an investor in Affinity Express. As an investor in other technology-enabled business services companies, we recognized the compelling operating leverage of the Affinity Express business model. We believe that the company has the right combination of management, capital and market traction that will enable it to continue to be one of the leaders in the outsourced graphics services space.”
Steve Ricci, vice chairman and managing partner of the information technology sector of Flagship Ventures added, “We welcome Ticonderoga to the investor syndicate and believe Affinity Express is exceptionally well-poised to execute on its exciting growth plans.” Hercules Managing Director Roy Liu said, “We are proud to be working with Affinity Express, a pioneer in the large-scale outsourcing of document creation services. This latest round of financing brings our total investment in Affinity Express to $1.95 million. The additional capital will provide the company with increased flexibility to grow its business, while continuing to provide its customers with a more efficient and effective way to outsource their document creation needs.”
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