[BusinessTeam] FW: VentureWire story

Message-ID: <6B75EF096AE0BE428B8CEDEA89C5F6327823C5@exchange01.lab49.com> · Tue May 01 14:44:01 2001 UTC

Thought this was interesting.

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VENTUREWIRE
Tuesday, May 01, 2001

o Investors Keen on Partsearch's Partnership with Best Buy

Glenn Laumeister worked at the incubator idealab! as an
entrepreneur-in-residence before leaving to assume the role of CEO for
Partsearch Technologies, a New York company he spent two months
researching and developing. Now in Partsearch's seventh week, Mr.
Laumeister told VentureWire that the company is seeking $5 million in
venture capital support.

Howard Morgan, president and director at idealab!, said the firm, which
has already invested $500,000 in Partsearch, would likely return as an
investor in its first formal round. He said he would also invest as an
individual. Mr. Morgan, who also sits on Partsearch's board, said that
although idealab! passes on follow-up investments one-third of the time,
he felt strongly about reinvesting because of Partsearch's partnership
with electronic seller Best Buy.

Best Buy directs its customers via a telephone number to Partsearch, which

searches its database for products that Best Buy carries and immediately
tells a customer if they can replace it. Its database contains parts for
consumer electronics, appliances, and wireless products for such companies

as Apple Computer, Compaq Computer, General Electric, IBM, Maytag,
Panasonic, Pioneer, Sony, Toshiba, and Whirlpool. Best Buy gets a 5% to
10% commission on the volume of sales Partsearch makes.

Mr. Laumeister said that within the first few weeks of accepting calls,
the company has billed $55,000 and expects to reach an additional $75,000
next month. He values the company at between $7 million to $8 million and
foresees revenues growing from $1.8 million this year to $48 million by
the end of its third year of operation. Currently the company has a burn
rate of $150,000, with 16 employees. He sees that number growing to 34
people by the end of the year and expects Partsearch to be profitable by
July 2002.

http://www.partsearch.com

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©2001 Technologic Partners

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