PeopleSupport Closes Oversubscribed $18 Million Series C Financing Round Led by Accel Partners and Benchmark Capital

Business Wire, Nov 22, 1999

LOS ANGELES--(BUSINESS WIRE)--Nov. 22, 1999--

Leading Internet Customer Care Provider Receives $25 Million to Date

PeopleSupport Inc. (http://www.PeopleSupport.com), the leader in mission-critical Internet customer care, today announced investments totaling nearly $18 million from a group led by Accel Partners and Benchmark Capital.

Also participating were previous PeopleSupport investors idealab Capital Partners and TMCT Ventures. In conjunction with this investment, PeopleSupport will add one additional seat to its board of directors.

"PeopleSupport has successfully emerged as the category leader in Internet customer care," stated Bob Kagle, general partner for Benchmark. "By combining the best customer care technologies with highly talented eReps(tm), PeopleSupport has developed the only comprehensive and robust Internet customer care service. The PeopleSupport solution is both highly scalable and flexible for the rapidly changing e-commerce environment."

"We believe that successful e-commerce sites will continue to make substantial investments in their customer care infrastructure and operations, and PeopleSupport is best-positioned to provide the integrated suite of services that Web sites are demanding," said Theresia Gouw Ranzetta of Accel Partners. "We are confident that PeopleSupport and its clients will continue to set the standard for delivering the best online customer care."

"Accel and Benchmark have backed many of the most successful Internet superstars, and we are extremely pleased that they have joined our investor group," said Lance Rosenzweig, CEO of PeopleSupport.

"We look forward to drawing upon the experience of our investors as PeopleSupport continues to provide the best customer care on the Internet to its clients and deliver an unparalled experience to their customers."

"PeopleSupport has been rapidly growing its operations to support its explosive client and strategic partner base. With this investment, we will continue to broaden our scope of services and technologies and scale our operations, sales and marketing," said Dave Nash, president of PeopleSupport.

About PeopleSupport

With headquarters in Los Angeles, PeopleSupport is the leader in the emerging field of Internet customer care and sales support. The Company's comprehensive suite of customized services includes live text chat, personalized e-mail reply, telephone services, and interactive self-help. PeopleSupport provides e-businesses with a flexible range of support options including complete outsourcing, software and infrastructure hosting, customer care consulting, and training.

PeopleSupport's clients include Fortune 500 companies and leading e-commerce businesses such as MGM (NYSE:MGM), Time-Warner (NYSE:TWX), BrandsForLess.com, CarParts.com, and Tavolo.com.

About Accel Partners

Accel Partners is a venture capital firm dedicated to helping outstanding entrepreneurs build world-class technology companies by providing a unique mix of investment and operating experience to its portfolio companies. Accel focuses intensively on building high-performance teams that can achieve exceptional results and manage extreme growth. Accel also explicitly helps its portfolio companies identify and recruit strategic corporate partners to accelerate their market acceptance.

Accel has more than $1.4 billion under management focused on early stage investments in the Internet software, e-commerce, rich media, networking equipment and communications services sectors.

Accel's investment in UUNET (Nasdaq:WCOM) was the first venture capital investment in the Internet. Accel's portfolio includes RealNetworks (Nasdaq:RNWK), Northpoint (Nasdaq:NPNT), Redback (Nasdaq:RBAK), Portal (Nasdaq:PRSF) and Foundry Networks (Nasdaq:FDRY). Further information about Accel can be found at http://www.accel.com.

About Benchmark Capital

Benchmark Capital was founded in 1995 with the mission of helping talented entrepreneurs build major technology enterprises focused on long-term growth. Benchmark takes a labor-intensive, team-oriented approach to venture investing in order to deliver a superior level of service to its portfolio companies.

Benchmark's portfolio includes franchise companies such as Ariba (Nasdaq:ARBA), Critical Path (Nasdaq:CPTH), E-Loan (Nasdaq:EELN), eBay (Nasdaq:EBAY), Juniper Networks (Nasdaq:JNPR), Northpoint Communications (Nasdaq:NPNT), PlanetRx (Nasdaq:PLRX), Red Hat (Nasdaq:RHAT), Scient (Nasdaq:SCNT), Webvan (Nasdaq:WBVN) and Wink (Nasdaq:WINK). Managing more than $1.4 billion in committed venture capital, Benchmark focuses on early-stage investing in markets where the partners have directly relevant experience.

These markets include consumer devices, e-commerce, application services, networking equipment, semiconductor, software, and telecommunications services. For more information on Benchmark, visit its Web site at http://www.benchmark.com.

About idealab Capital Partners

Founded in 1998, idealab Capital Partners (ICP) is a Southern California-based, nationally focused venture capital firm affiliated with idealab!, a leading creator and operator of Internet businesses. Co-founded by Managing Directors Bill Elkus and Bill Gross, ICP seeks to build world-class companies through its knowledge of the participants, technology and culture of the Internet. Among ICP's companies are: GoTo.com (Nasdaq:GOTO), eToys (Nasdaq:ETYS), MP3.com (Nasdaq:MPPP), NetZero (Nasdaq:NZRO), Tickets.com (Nasdaq:TIXX) and CarsDirect.