Press Release
401kExchange.com Obtains Additional Venture Funding
West Palm Beach, FL, March 28, 2002 -In a Bear market 401kExchange through experience, market savvy, unique services and real revenue is receiving an additional funding for business expansion.
Coming off a banner year with revenues increasing by 50%, expenses dropping by 45%, 401kExchange has landed additional financing from existing investors with Newlight Associates of New York anchoring the new round.
"NewLight Associates is very pleased to take the lead in this investment given the company’s growth, expense management, market leadership, unique services, and committed management team," said Bob Brill, General Partner of NewLight Associates.
Acknowledged by the financial media and industry alike as a "clicks and mortar" success story, 401kExchange.com is processing Billions in 401k plan assets as it heads into 2002 through its Web-based Exchange that delivers objective Service Provider ratings, online proposal quote-analysis services, databases and due diligence services for the 401k industry aligning Financial Advisors, Broker-Dealers and Employer-Plan Sponsors shopping for 401k plans with plan Service Providers who offer those plans.
"Securing additional funding in an extremely tight private equity market is powerful validation of 401kExchange’s ability to deliver real value to our main client base, Retirement Advisors, who are willing to support us even though they are going through their own ‘tight market,’" said Fred Barstein, President and CEO of 401kExchange.
"We are especially pleased given that less than 30% of companies seeking funding were successful in 2001 and that includes Biotech and healthcare companies," added Barstein.
401kExchange provides its services to over 4,500 Retirement Advisors, dozens of Broker-Dealers including industry leaders like American General Securities Inc. (AGSI), Financial Service Corporation (FSC), over 100 major 401k Service Providers and maintains a research call center operation that contacts more than 200,000 Employer Plan Sponsors each year.
According to Barstein, in the past 24 months alone, 401kExchange.com processed over 3,200 proposal requests from Financial Advisors, Broker-Dealers and Employer Plan Sponsors with assets totaling $5.6 Billion dollars.
Steve Getsy, founder of On-Line Ventures and early investor in 401kExchange, commented, "On-Line Ventures is happy to participate in this additional financing for the continued development of 401kExchange. The company’s management team have demonstrated an ability to maximize revenues, manage expenses and adjust their business model to deliver remarkable efficiencies for buyers, sellers, and intermediaries in the market."
Barstein concluded, "Our goal will be to continue to expand the 401k distribution, systems and sales processes to deliver online services that add value to all constituencies of the market."
401kExchange, honored by InfoWorld Magazine as one of the "Top 100 E-Business Innovators" in the United States, is headquartered in West Palm Beach, FL.
For more information, visit the Web site at www.401kExchange.com, e-mail Stephanie Capellupo at scapellupo@401kExchange.com or phone 561.439.5252 x 2221.
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