eRust
E-Steel gets venture backing from Goldman, others
SAN FRANCISCO, Dec 6 (Reuters) - E-Steel Corp. said Monday a group of investors that includes Goldman Sachs Group (NYSE:GS - news) have committed $66 million in new funding for the online steel market, valuing the company at some $330 million.
The new investors will acquire a 20 percent ownership of the company ahead of an initial public offering widely expected next year.
Also participating in the funding round are Paul Allen's Vulcan Ventures Inc., MSD Capital, GE Capital, Generation Paratners, Amerindo Investment Advisors, Mitsui & Company U.S.A., DuPont, and Mitsubishi International and MC Capital,
subsidiaries of Mitsubishi Corp.
The company's three initial investors, Bessemer Venture Partners, Greylock, and Kleiner Perkins Caulfield & Byers, have also committed more funding.
The company has been building itself up as the online global marketplace for the $700 billion steel industry. It said that more than 600 companies have started to using the service aimed at connecting all segments of the global steel value chain so they can transact business. This will include mills, service centers, distributors, fabricators, converters, international trading companies and manufacturers who use steel in producing other products.
E-Steel Founder, Chairman and CEO Michael S. Levin said: ``This infusion by such a powerful strategic investor group will enable E-Steel to further define the standards and future of e-commerce for one of the world's largest industries.' |
