Snapfish.com Secures $33 Million in Series B Funding
Snapfish.com Raises Largest Amount of Funding
Among Online Photo Services to Date. Top Venture Capital Firms and Strategic Investors Back Free End-to-End Photo Service.
SAN FRANCISCO - May 3, 2000 - Snapfish.com Corporation today announced the close of $33 million in its Series B round of financing led by Japanese investor, Trans Cosmos, with new investors Audax Ventures, BellSouth and Compaq, as well as previous investors CMGI @Ventures, the venture capital affiliate of CMGI (Nasdaq: CMGI), and Mayfield Fund.
Snapfish.com Corporation's first round of financing of $7.50 million closed in November 1999 and was led by Mayfield Fund and CMGI @Ventures. The second round brings the total amount of funding raised by Snapfish.com to $40.50 million, which is to date the largest amount of secured funding disclosed in the online photo sector. Snapfish.com will use the additional resources to expand the depth and breadth of its Internet service, which launched in April, and for marketing efforts to build the Snapfish.com brand.
Snapfish.com is the only photo service that offers developing, printing, digitizing, and online storing and sharing of users' photographs - all for free. Unlike other offerings, the Snapfish.com service is for everyone, users of traditional 35 mm film cameras as well as those who own digital cameras.
One of Japan's leading Internet investors, Trans Cosmos has had tremendous success bringing U.S. technology brands, such as NetRatings, DoubleClick and RealNetworks, into the Japanese market. Its lead investment in Snapfish.com is designed to expedite the company's expansion into Japan, one of the largest and most active photography markets in the world.
"We invested in Snapfish.com because it's the only player that combines the three critical ingredients required for success," said Mark Kalow, managing director of Trans Cosmos.
Kalow continued, "First, Snapfish.com addresses the vast number of 35 mm film camera users who are interested in sharing their photos online. Second, Snapfish.com's award-winning free business model and its strategic partnerships demonstrate visionary thinking with respect to creating a business that truly leverages the New Economy. The third element is the company's experienced management team. All these factors position Snapfish.com well for leadership in the online photo market."
In addition to funds raised from leading venture capital firms, BellSouth and Compaq have joined the Series B round as strategic investors. These strategic relationships support Snapfish.com's national branding efforts and are expected to expand its reach to targeted groups of American consumers.
Compaq, the world's largest supplier of computing systems, will develop co-marketing programs with their top-selling personal computer, the Compaq Presario. The strategic relationships with both companies expand Snapfish.com's potential to market its services to the family market.
Raj Kapoor, Snapfish.com Corporation's co-founder, president and CEO said, "In today's market, strong financing from top backers will separate the winners from the losers. We are very fortunate to be backed by leaders in the venture capital space as well as by strategic partners whose comprehensive national consumer branding campaigns complement our own."
Snapfish.com is positioned to dramatically redefine the consumer photography market by providing the first complete photo service that offers film developing, printing, storing and sharing online, all for free. Snapfish.com will provide both film-based and digital camera users with the ability to seamlessly and effortlessly share, store and order reprints with unsurpassed security.
Snapfish.com recently earned the coveted award for Most Innovative Business Model from a Startup in 1999 from Internet World Magazine. The magazine noted that, because Snapfish.com serves customers with 35 mm film, it "has access to the vast majority of picture-takers today, who will also presumably be the digital camera wielders of tomorrow."
Snapfish.com has a strategic partnership with District Photo, the nation's largest mail order photo finishing lab, with more than 50 years of experience in the market. District Photo has also taken an equity stake in the company. Snapfish.com uses Kodak paper and materials for all of its processing.
With consumer photography representing a $14.90 billion market in the U.S. alone, Snapfish.com is poised to provide consumers with breakthrough benefits in online photography and reinvent an enormous consumer category in the process. The company is based in San Francisco, California. Additional information is available at the
company's Web site at http://www.snapfish.com.
About CMGI, Inc. and CMGI @Ventures
With more than 70 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet businesses in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands, 1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGion, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviPath, SalesLink, Tribal Voice and yesmail.com. CMGI @Ventures has ownership interests in 57 Internet companies, including Lycos, Inc. (Nasdaq: LCOS), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), MotherNature.com (Nasdaq: MTHR), Ventro (Nasdaq: VNTR) and Vicinity (Nasdaq: VCNT).
CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810, Tel: 978-684-3600. CMGI @Ventures has offices there, as well as at 3000 Alpine Road, Menlo Park, CA 94028.
For additional information and a complete listing of the CMGI and CMGI @Ventures companies, see http://www.cmgi.com and http://www.ventures.com.