Advanced-HR Introduces Option Impact - First Online Source for Pre-IPO Stock and Compensation Data

Business Wire, Jan 10, 2000

Business Editors

SARATOGA, Calif.--(BUSINESS WIRE)--Jan. 10, 2000

Venture Capitalists and Pre-IPO Companies Gain Access to Total Equity

and Compensation Information for Planning, Recruitment and Strategic

Growth Decisions

Advanced-HR Inc. today introduced dp-interactive Option Impact(TM), the sole source of nationwide stock and pay practices in pre-IPO technology companies. Advanced-HR, a Silicon Valley firm pioneering the science of total compensation planning and management for start-ups, created Option Impact as a new online version of their widely acclaimed Advanced Equity Report(TM).

An industry first, Option Impact provides clients, at all stages of pre-IPO development, with access to the most up-to-date compensation and equity distribution data via the Internet. In today's dynamic market, where competitive compensation is vital to attracting and retaining critical employees, Advanced-HR is providing clients with accurate and current statistics, solving problems caused by outdated information.

"Labor markets are changing so rapidly, it is very difficult for start-up executives to determine appropriate compensation packages - blending salary, stock options and other benefits," said Dee DiPietro, founder and CEO of Advanced-HR. "Today's labor market differs dramatically from the market even six months ago. Compensation data is hard to find and is often stale. Creating the right competitive stock and pay practices are vital to a start-up's financial health."

Real-time Data Means Real Success

Less-than-competitive compensation practices have several detrimental effects on pre-IPO technology companies. Research from Advanced-HR shows that many start-up companies simply don't understand the value of their pre-IPO stock. Some give away excessive amounts to several individuals that result in inconsistent distribution for the remainder of the company while others unknowingly make offers that are under market. Poor practices will hamper a start-up's ability to recruit employees and can create concern about management effectiveness with the board of directors and investors.

Venture Funding Firms Rely on Option Impact

Venture capital firms depend on the specialized data in Option Impact. These funding companies are critical partners to the start-up, acting as both board members and advisors. Online compensation and equity information gives venture companies the tool to assess company value as it relates to compensation practices, establish reliable ownership and stock option plans, and make recommendations for attracting executives to the fast-growing start-up.

Early clients for this online information include: Aspen Ventures, Benchmark Capital, Canaan Partners, Euclid Partners, Hummer Winblad, IDG Ventures, InterWest Partners, Kleiner Perkins Caufield & Byers, Mayfield Fund, Menlo Ventures, New Enterprise Associates, Norwest Venture Capital, SOFTBANK Venture Capital.

Start-ups Utilize Option Impact Regularly

The pre-IPO companies that participate in Option Impact, featuring aggregate data from venture-backed companies in all technology sectors and geographic locations, include many founding clients of the Advanced Equity Report. "Having used Advanced-HR competitive benchmarks reports since their start in 1997, we value the firm's attention to quality and ability to put complex data in an easy-to-use format," states Eric Ludwig, CFO for Instill Corporation, e-Business for foodservice in Palo Alto, California. "Advanced-HR itself is a small, technology-based company and, as such, understands the needs of start-ups. We rely on their products to help us in the competitive labor market and their transition to an online survey will help us understand 'competitive' in Internet time."

Pricing and Availability

Option Impact's online services will be available beginning late January in a variety of service or subscription programs. Full access to online reports and access to online information system for companies depends on capital raised or annual revenue. However, any pre-IPO technology company who completes the electronic survey form in its entirety can receive limited access to the executive stock and pay data for 3 months free of charge.

Pricing for financiers varies depending on the size of the firm and the benefit they provide to their clients or portfolio companies.

About Advanced-HR

Advanced-HR Inc. is a pioneer of total compensation planning and management for pre-IPO technology companies. This Silicon Valley-based research firm was created in 1997 to provide the founders of new enterprises the facts they need to deliver highly competitive stock options and pay to their employees. The following companies have used and benefited from Advanced-HR's Advanced Equity Report: Backweb Technologies, Inc. (NASDAQ: BWEB), Brio Technology Inc. (NASDAQ: BRYO), Chemdex Corporation (NASDAQ: CMDX), E.piphany (NASDAQ: EPNY), Exodus Communications Inc. (NASDAQ: EXDS), FogDog (NASDAQ: FOGD); Healtheon Corp. (NASDAQ: HLTH), Latitude (NASDAQ: LATD), NetGravity Inc. (NASDAQ: NETG), Netcentives (NASDAQ: NCNT), Packeteer (NASDAQ: PKTR), and Symphonix Devices Inc. (NASDAQ: SMPX). Advanced-HR is the sole source for information of this kind and can be found on the World Wide Web at www.advanced-hr.com.