WR Hambrecht Scores Equity Investment From Fidelity

Computergram International, June 16, 1999

WR Hambrecht & Co, the internet-focused investment bank founded by industry veteran Bill Hambrecht, has received an undisclosed equity investment from Fidelity Ventures, the venture capital arm of Fidelity Investments. The move, which will give Fidelity a minority stake in the bank, is Hambrecht's fifth such investment since the end of April, following similar agreements with Instinet Corp, Novell Inc, American Century, and News Corp's epartners unit. The money from Fidelity brings the bank's total cash infusion to $50m.

Hambrecht says the investments will fuel its pursuit of a variety of growth and new business objectives. In February, the firm launched its OpenIPO system, an auction-based method of taking companies public on the internet. The bank claims that its goal is to change the face of investment banking by leveraging technology to create an open market system where everyone has equal access to investment opportunities. Later this year, Fidelity Brokerage Services plans to offer its online brokerage customers the opportunity to participate directly in the OpenIPO process.