Nextance Secures $10.6 Million in Equity Financing; Funding to Extend Company's Leadership of Rapidly Growing Enterprise Contract Management Software Market

Business Wire, August 12, 2002

Business Editors/High-Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 12, 2002

Nextance, a leading provider of enterprise software for contract management and commitment management, announced that it has secured $10.6 million in venture financing, led by 21VC Partners of Palo Alto, Calif. Both of Nextance's previous investors, ONSET Ventures and El Dorado Ventures, also participated in the funding. These funds will be used to scale the company to meet aggressive growth goals, including an increase in sales efforts and marketing activities. This round of funding is subsequent to a round of $9 million announced in February of 2002, led by El Dorado Ventures.

21VC Partners focuses on technology investments targeting the enterprise. Neil Weintraut, partner and co-founder of 21VC Partners, has been named to Nextance's Board of Directors.

"Nextance has been capturing seven-figure opportunities while most enterprise software sectors have been struggling," said Weintraut. "The company's outstanding performance has been enabled by a combination of innovation and the executive team assembled by Kirk Krappe."

Nextance enables Global 2000 companies and large public organizations to gain control of their contracts, and in doing so, enhance revenues, reduce costs, and reduce contractual risk. The Gartner Group estimates that the contract management industry will grow to $20 billion in software and services by 2007, making it the highest growth segment of the enterprise software market.

"As the initial investor in Nextance, we are thrilled to see Nextance emerge as the leader in this fast growing space," said Darlene Mann, partner at ONSET Ventures. "Nextance has the most functionally rich product in the industry and a strong customer acquisition rate in a tough selling environment. This investment will enable Nextance to continue to expand its leadership of this space."

"The investment interest in Nextance was overwhelming," said Krappe, president and CEO of Nextance, Inc. "The quality of our product and our customer momentum made us attractive to many investors. I am pleased to have 21VC Partners invest in the company. Neil Weintraut has an extensive track record with successful technology companies and adds great depth to our seasoned board of directors."

About Nextance, Inc.

Nextance, Inc. is a leading enterprise software firm providing applications that assist corporations and public entities in better managing their contracts, commitments, and supporting business processes. Companies using Nextance software gain control over their contracts, rights, and obligations and realize increased revenues, reduced expenses, and reduced contractual risk. Nextance is privately held and is headquartered in Redwood City, Calif. Additional information about Nextance is available at http://www.nextance.com.

Nextance is trademark of Nextance, Inc. All other company names mentioned herein may be the trademarks of their respective owners.