CyberStarts Adds ec payments To List of Accelerated Companies

Business Wire, Sept 20, 2000

Business Editors & Technology Writers

ATLANTA--(BUSINESS WIRE)--Sept. 20, 2000

Internet-Enabled Electronic Payment Infrastructure Company

Selects CyberStarts Over Several Competing Incubators and VC Firms

Atlanta-based incubator and accelerator CyberStarts recently announced the addition of ec payments - an ASP focused on providing a payment management infrastructure for the Internet - to its growing list of accelerated companies. Under terms of the agreement, CyberStarts has made an investment of $8 million in ec payments and will play a key role in the management and direction of the company moving forward.

ec payments' infrastructure will allow for complete lifecycle management of all types of payments (paper and electronic) made by businesses. This includes payment origination and settlement, as well as the ability to handle exceptions - for example stops and voids - via a single web-based interface. Designed to allow customers to maintain their own unique processing schedule and business rules, ec payments' functionality can be implemented with new e-commerce based applications, or existing legacy systems. Clients define their own processing parameters and business rules, including defining processing frequency and times; choosing clearing banks, credit card processors and check print/distribution partners; time limits for warehousing completed transactions and future dated payments, and risk limits used to prevent processing errors.

The company's founders, David L. Garrison and Hayden Reed bring a wealth of experience in financial services and payments products to the development of the company's first product offering.

ec payments has garnered much attention in the investor/incubator community due to its first-to-market status in the online payments space. The company's initial product functionality is complete and ready for full release in September. In addition, the ec payments platform already is integrated with two major U.S. clearing banks, the two largest escheatment players in the U.S., and the two largest check/print/distributors in the country. CyberStarts was chosen among several potential investors due to the company's financial-service focus and domain expertise in the financial services and payments marketplaces. To that end, Spessard, who specializes in the area of financial services and payments, will play an active role in the company as the product is rolled out to customers and the management team is completed.

"When searching for a VC/incubator firm, we wanted to find a company that understood the payments arena and the value of our application, as well as one that could help us be more successful than we could be on our own. It quickly became clear that, without question, CyberStarts was that company," said David Garrison, president and CEO for ec payments. "CyberStarts, as well as their investors [, First Data Corporation, Marsh & McLennan Capital, and Wachovia Capital Associates, among others], had an understanding of the market and of our potential that put them well ahead of other firms when it came time for us to make our decision."

"Early on in our due diligence process it became evident that the synergy between CyberStarts and our investors could provide unmatched benefits to the ec payments business model," said Rob Spessard, managing director at CyberStarts. "We felt that our financial services focus, combined with our specific interest and domain expertise in the payments space could offer a very large and lucrative opportunity for both companies."

CyberStarts' charge in managing the growth and development of ec payments includes assisting with the signing of additional clearing banks and distribution partners, providing services through its CyberPartners program, and offering leadership through the positions held by Spessard and CyberStarts President Ashish Bahl on ec payments' board of directors.

"Given the competition among several VCs and incubators, we are especially thrilled to have the opportunity to help ec payments realize its full business potential," said Bahl. "The ec payments deal represents a tremendous competitive win for the company, not to mention further proof of the effectiveness of our vertically-focused approach in the financial services space."

About ec payments

Founded in 1999, ec payments, inc. has developed a payment management infrastructure for both e-commerce and legacy business applications. Companies leverage the Internet-based service to fulfill and manage all types of payments with no modification to existing systems, thereby gaining the cost and productivity benefits of an outsourced Internet solution with virtually no up front investment or risk. ec payments, inc. is headquartered in Atlanta, GA.

About CyberStarts

CyberStarts is a full-service incubator and accelerator that currently focuses on business-to-business financial services and web infrastructure opportunities. Its mission is to provide advisory & operational services and growth capital to eCommerce companies, and to transform them into market-leading participants in an accelerated time frame. Its vertical focus provides it with a unique ability to identify the highest potential ideas, and to leverage its expertise and relationships to translate these ideas into businesses in compressed cycle times. CyberStarts' strategic investors and partners include iXL Ventures, Marsh & McLennan Capital, First Data Corporation, Wachovia Capital Associates, and Guyton Partners, among others. Its team has a combined background of more than 100 years of expertise in investments, insurance, banking, credit, and payments. CyberStarts is headquartered in Atlanta.