El Dorado Ventures Forges Ahead in Internet Commerce Contributing to Financial and Business Success of Start-ups; Former VeriFone Executive to Lead Internet Commerce Initiative

Business Wire, Sept 15, 1998

MENLO PARK, Calif.--(BUSINESS WIRE)--Sept. 15, 1998--Recognizing the market potential of Internet commerce as it grows from $8 billion in 1997 to its anticipated $333 billion by 2002, El Dorado Ventures, an early stage venture capital firm, announced today an aggressive initiative to identify, fund and mature emerging Internet commerce technology companies. Former VeriFone executive, George Hoyem, will lead El Dorado's Internet commerce initiative to help the firm generate more client success stories like those of EarthLink Network Inc., Pilot Network Services, POET Software and Women.com Networks.

El Dorado's creative technique of bridging the Bay area angel investor community with institutional venture capital firms has made the company successful in funding more than 50 technology based start-ups in the areas of enterprise software, communications and now Internet commerce. El Dorado works with their portfolio companies as advisors, offering real business expertise from the general partners. The companies also have access to almost 20 industry experts actively involved in El Dorado's Technology Partners program which brings added expertise and professional networks from highly successful entrepreneurs like Gordon Bell and Dan Lynch. The addition of George Hoyem, most recently from VeriFone, Inc., a pioneer in electronic commerce, brings additional expertise to El Dorado. Hoyem was critical in VeriFone's aggressive efforts to drive the proliferation and adoption of Internet commerce. With Hoyem on the team, El Dorado provides emerging technology companies the financial and business expertise necessary to be successful in today's rapidly growing Internet commerce market.

"Global commerce is at an explosive growth point due to the impact of Internet commerce in both the business-to-business and the consumer-to-business areas," said Gary Kalbach, general partner of El Dorado Ventures. "George's real-world experience in the Internet commerce area will help us to fund and build the companies that will drive this global shift to virtual commerce over the Internet."

El Dorado has already made significant strides in the area of Internet commerce with portfolio companies like Pilot Network Services, which recently completed a successful IPO in August of 1998.

"El Dorado was our first VC firm back in January of 1994 and has remained a strong partner through our rapid growth," said Marketta Silvera, president and CEO of Pilot Network Services, Inc. "The ability to work directly with El Dorado's experienced partners along with their respect for our entrepreneurial and creative environment has been very welcomed and has directly contributed to our success."

"I first met the El Dorado team when I was running EarthLink's entire business out of a 600 square foot office in Los Angeles. They provided financial backing and introductions to key people who have been with us through our enormous growth over the last four years, literally growing from a few thousand subscribers to over 750,000 today," said Sky Dayton, chairman and founder of EarthLink Network, Inc. "El Dorado understands the market potential of Internet commerce and was critical in assisting EarthLink to the success that we are today."

"El Dorado's market awareness, contacts and business acumen have helped guide POET through rapidly changing market environments, allowing POET to emerge in 1998 as a leader in XML solutions for e-commerce and content management," said Dirk Bartels, president and CEO of POET Software.

"El Dorado invested in us and has been involved as we evolved our strategy from a bulletin board service (BBS) to an Internet based content, community and commerce play," said Marleen McDaniel, president and CEO of Women.com. "El Dorado has counseled and advised us as we have grown by providing expertise on the industry as well as on process and good business practices."

About El Dorado Ventures

El Dorado Ventures is a private venture capital partnership that invests primarily in early-stage, technology-based companies located on the West Coast. With a particular focus on enterprise, communications and Internet commerce technologies, the general partners have helped entrepreneurs turn startup ventures into companies of lasting value for two decades. El Dorado recently closed its latest fund of $65 million, which will make approximately 20 seed and first round investments over the next 2-3 years. For more information on El Dorado, please call 650-854-1200 or http://www.eldoradoventures.com.

More About El Dorado's Internet Commerce Portfolio Companies

EarthLink

EarthLink is the world's largest independent Internet service provider. Through its unified EarthLink Sprint Internet access service, the company makes the Internet relevant and productive to hundreds of thousands of individuals and businesses every day. Headquartered in Pasadena, EarthLink provides a full range of innovative access and hosting solutions to thousands of communities internationally from more than 1,400 points of presence. EarthLink and Sprint have formed a broad business relationship to create an Internet service with the potential to reach millions of new customers. Information about EarthLink and EarthLink Sprint services is available by calling (800) 395-8425 and through EarthLink's Web site at http://www.earthlink.net.