YouSendIt Inc. Secures $10 Million in Series B Financing

Business Wire, April 24, 2007

Proceeds Will Drive Increase in Market Share Through Marketing, Research and Development to Expand File Delivery Service to Broader Digital Content Delivery and Management Services on the Web

MOUNTAIN VIEW, Calif. -- YouSendIt, Inc. the leader in file delivery software-as-a-service (SaaS) for small and medium-sized businesses, announced today that it has raised a $10 million Series B round of venture capital financing from Sigma Partners, Alloy Ventures and Sevin Rosen Funds.

The Series B financing will be used to broaden YouSendIt's market presence as the company moves toward new services to expand content delivery and management services on the Web.

YouSendIt serves more than four million registered users from 220 countries and registers more than 350,000 new users each month. Businesses globally rely on YouSendIt for delivery of time-sensitive and high-value digital documents. YouSendIt has been recognized as a leader who sets the standard to easily send, receive and track files of all sizes.

"The new capital will allow us to deepen our market reach and further accelerate the growth of our customer base. Moving forward, we will open up our service through developer programs and expanded strategic partnerships," said Ivan Koon, CEO, YouSendIt. "We are adding inter-company business collaboration to our service and are facilitating the integration of YouSendIt into the workflow applications of our customers. This will increase their productivity and strengthen our market position."

"We see a significant growth opportunity for YouSendIt. It has established itself as the leader in file delivery, receipt and tracking of digital materials. We believe this market will expand dramatically as businesses depend on YouSendIt for business collaboration," said Bob Spinner, managing director of Sigma Partners. "As YouSendIt offers higher-value services and tighter integration into business workflow solutions, it will become an integral part of digital-content-based collaboration."

"SaaS is a mainstream solution for businesses of all sizes. Industry experts predict that within the next three years, three out of every four businesses will use SaaS solutions," said Ammar Hanafi, general partner at Alloy Ventures. "Collaboration is a significant opportunity for SaaS and YouSendIt is a leader in this market. With this financing, YouSendIt will continue to build a business of great value by innovating for its customers."

"YouSendIt's current file and content delivery service is a natural value-add and extension for many industry solutions, including desktop applications, productivity tools, ISPs, and Web-based portals," said Nick Sturiale, partner at Sevin Rosen Funds. "YouSendIt has expanded its market reach through a network of strategic partnerships and the new capital allows the company to further establish new relationships to eventually obtain a ubiquitous market presence."

Sigma Partners led the YouSendIt series B round with additional funds coming from series A investors Sevin Rosen Funds and Alloy Ventures. Spinner assumes a seat on the YouSendIt board of directors, joining Ammar Hanafi, general partner at Alloy Ventures; Nick Sturiale, partner at Sevin Rosen Funds; Edward Kozel, CEO of Skyrider; Ranjith Kumaran, founder of YouSendIt; and Ivan Koon, YouSendIt CEO.

About YouSendIt

Based in Mountain View, CA, YouSendIt is the leader in Web-based file delivery for small and medium-sized businesses, and offers a proven and secure solution for transferring and tracking files. Its proprietary technology requires no software installation and is available at anytime, anywhere in the world. With more than four million registered users from 220 countries, YouSendIt transfers over 30,000 GB per day, 500 million files to date. For more information and to send big files via YouSendIt, please visit http://www.yousendit.com.

About Sigma Partners

Founded in 1984, Sigma Partners is a leading early-stage venture capital firm. The Sigma team uses its deep operational experience to provide entrepreneurs with practical strategic counsel through every phase of company growth. With over $1.5 billion under management and bicoastal offices, Sigma invests in innovative technology startups across the United States. Some of the market leading companies in which Sigma has invested include Atria, Cascade, Clarify, Internet Security Systems, KLA-Tencor, Octel, VeriFone, Vermeer, and Vignette. For more information, please visit www.sigmapartners.com.

About Alloy Ventures

Based in Palo Alto, CA, Alloy Ventures has been providing venture capital funding to entrepreneurs since 1977. The primary investment focus is on seed- and early-stage companies in markets served by information and life science technologies. Leading institutional investors, endowments, and others have committed more than $1 billion to seven vintage year investment partnerships managed by Alloy. More than 175 companies have received funding from these venture funds. Alloy Ventures' partners are experts at helping new and seasoned entrepreneurs define, evolve, and execute a strategy that maximizes the chance of success. For more information, please visit www.alloyventures.com.