MerchantCircle Receives $10MM in Funding from Square 1 Bank and Equity Investors

Business Wire, Nov 9, 2007

PALO ALTO, Calif. -- MerchantCircle, the largest and fastest growing online network of local business owners in the nation, has received $10MM in funding from Square 1 Bank and equity investors Rustic Canyon Partners, Scale Venture Partners, Disney's Steamboat Ventures, and from new financing partners IAC (NASDAQ: IACI) among others. The funding validates the company's business model and allows MerchantCircle to pursue acquisition opportunities becoming available. The deal dramatically accelerates MerchantCircle's strategy to become the most effective channel for connecting local businesses with local consumers.

"The innovation of MerchantCircle's "merchant-first" business model is the type of advanced vision that sustains the success of our region," said Ron Kundich, SVP Manager, Square 1 Bank Silicon Valley, "I have been impressed by MerchantCircle's strong growth and look forward to a long term partnership."

"Our vision is to deliver effective online marketing services to every local business in North America," said Ben T. Smith IV, MerchantCircle Co-founder and Chairman, "We are pleased that our investment partners support our strategy to bring more value to local merchants by delivering well-qualified local consumers."

MerchantCircle has attracted more than 300,000 local merchants in eighteen months. Local business owners use MerchantCircle to create web sites, manage their online reputation, write blogs, send newsletters, publish coupons, and connect with other business owners in their communities. In their new relationship with Square 1 Bank, Merchant Circle will gain access to Square 1's full network of banking services, comprehensive financial expertise and signature service.

About MerchantCircle

Founded in 2005, MerchantCircle is the largest online network of local business owners in the nation. More than 14 million MerchantCircle business listings across the country are easily accessed on major search engines. Currently, over 300,000 merchants on the MerchantCircle network upload pictures, blog, build coupons, and newsletters, while also connecting with other business owners. MerchantCircle also gives business owners the power to manage their online reputation by aggregating reviews and increasing visibility across the web.

MerchantCircle is located in downtown Los Altos, Calif., and is funded by Rustic Canyon Partners, Scale Venture Partners, Disney's Steamboat Ventures, Square 1 Bank and IAC (NASDAQ: IACI). Learn more at www.merchantcircle.com.

About Square 1 Bank

Square 1 Bank first opened its doors August 8, 2005, as a full service commercial bank dedicated to providing financial services to venture capital firms and entrepreneurs in all stages of growth and expansion. Square 1's expertise, focus and strong capital base provide solid support for its clients' needs. The bank offers flexible, tailored products and solutions aided by the latest in technological innovations. To serve its relationships, Square 1 has offices coast to coast in San Diego, Seattle, and the Silicon Valley; Austin, Boston, Durham, McLean, and the New York metro area. More information is available at www.square1bank.com.