httprint Lands Over $10 Million in New Funding, Includes Bertelsmann
Press release from the issuing company
June 11, 2002 -- (WhatTheyThink.com) -- httprint, the technology and services provider targeting corporate print buyers, is set to secure significant new funding from Bertelsmann and Investcorp. Sources indicate the funding total is “over $10 million.”
Sources familiar with the new funding say it will be used to grow httprint’s presence worldwide and further improve the software the company uses to automate the print buying process. At press time, it was unclear exactly how much Bertelsmann and Investcorp would invest and the amount each would contribute. According to previous press releases, Investcorp has been the lead venture capital firm supporting httprint. Bertelsmann is one of the largest media companies in the world.
The funding arrives during what one analyst calls “cash-strapped times” for companies in the e-procurement space. Today, ImageX and iPrint will begin trading on the NASDAQ SmallCap Market because their stock price has been well below $1.00 for much of the year. iPrint has said they are examining funding options and both have experienced significant restructuring.
Meanwhile, Printcafe Software is attempting to secure additional cash via an IPO. Last week, Printcafe cut their offering in half in what appears to be an attempt to generate IPO interest. Their status for doing so is “day-to-day” with tough market conditions playing a major role. One source familiar with httprint said that “the quality and quantity of this funding will elevate httprint’s competitive position to new heights.”
The Bertelsmann portion of the new funding is most likely from their venture arm. Smart money suggests that httprint will be able to penetrate many of the divisions within the media powerhouse. Bertelsmann, the world's biggest book publisher and a major force in magazines, music, and European TV is debt-free and profitable.
Bertelsmann is well regarded for its savvy investments in technology firms. In the March 27, 2002 issue of Fortune, author Justin Fox said Bertelsmann has spent about $2 billion on Internet investments and realized “$7 billion in hard cash--more money than AOL has made in its existence as a corporation (and) more than the current market capitalization of Amazon.com.”
httprint, known for its early “hands-on and human touch” approach to print e-procurement, has been very successful in securing large corporate accounts like DIRECTV, SBC Communications, Williams Lea, Axa and Royal Sun Alliance.
In an interview conducted last year with WhatTheyThink.com, Mark Porter, CEO of httprint told us that they target companies who spend over $5 million annually on print - mostly large enterprise clients, ad agencies and rapidly growing technology companies.
In last year's interview, Porter distinguished httprint this way, “Our full service production management not only is a source of revenue; it is a direct line into the customer to introduce our ecommerce solution. Our experts also help the customer understand their print spend before introducing the ecommerce tools. Otherwise you take an already confusing picture and simply introduce another variable. Most people barely have a handle on their print spend to begin with, simply giving them some software doesn’t begin to address the problems. Httprint is the only company offering an ecommerce solution for the industry that has all of these components. Our exploding revenues are the only measure we look at to judge whether or not we have the right mix.”
Headquartered in San Francisco, the company has offices in Los Angeles, New York, London, Amsterdam and Dusseldorf. Company officials declined to comment for this story.
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