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2004 2003200220012000 |
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Freeliant.com Receives $4 Million
Investment CORDOVA, TN (August 14, 2000) - Delta Venture Partners I, L.P., recently led a $4 million first round of financing for Freeliant.com, a full-service Application Service Provider (ASP) headquartered in Memphis, TN. The company currently operates in Memphis and Chattanooga and will use the Delta Venture Partners I investment to build server farms in Nashville and Atlanta. Freeliant serves as an outsourcing solution for IT departments of small-to-medium size businesses. Their services include hosting software and data that businesses need in their internal operations. This allows a business access to a wide range of applications and services without the time and expense of buying and maintaining them. Freeliant's service allows their customers to concentrate on their core business instead of computers and also eliminates the need for a LAN. "Freeliant has only about 30 customers at present," said Don Mundie, managing partner at Delta Capital Management. "However, we see value in their management and business model. They've targeted about 40 cities in the Southeast and it takes money to get there. In five or six months they will need another round of financing, but this will be enough to get them going." Darren Metz, founder and president at Freeliant, commented, "I think it says something about us that we have built the business high enough to attract institutional investors such as Delta Capital Management." Metz expects the company to be cash flow positive in about 18 months. Revenues come from a monthly fee for all IT services. Freeliant may not need additional funding, however, Metz is working on a second round for early 2001 in case demand grows faster than internal capital. "It would be ideal to go straight to an IPO and skip the usual second round of funding or have that round done by an investment banker rather than another venture capital firm," Metz says. "Right now we are focusing on providing the best service we can. The pot of gold at the end of the rainbow will take care of itself." Contact: Darren Metz Freeliant.com 901-309-3900 Don Mundie Delta Capital Management LLC 901-755-0949 |
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