It's taken me a long time to begin looking at PSINet Ventures, but I've finally started. I keep seeing news releases from companies which had received investment money or services from PSINet Ventures, and curiosity overcame my laziness.
I almost always start with SEC data. Here I've recorded references to PSINet Ventures in those documents. Next will come trying to understand the numbers; and when that happens, bear in mind that I'm no accountant.
1)From PSNet's 10-Q dated Nov. 14, 2000, within in a section titled NOTE 12 - COMMITMENTS AND CONTINGENCIES:
In February 2000, the Company launched PSINet Ventures, a corporate ventures program. With a combination of cash investments and the exchange of services for equity, PSINet Ventures partners with innovative Internet entrepreneurs through direct minority equity investments, typically during early and mid-stage financing. PSINet Ventures has focused globally on application service providers, or ASPs, content service providers, or CSPs, eCommerce providers, Internet infrastructure providers, incubators, and other emerging opportunities that may enhance PSINet's financial and competitive technology and service positions. The services for equity structure permits the start-up company to purchase any PSINet service, including managed web hosting and VISP services, in exchange for equity rather than cash. As of September 30, 2000, PSINet Ventures owned equity in 115 companies, 11 of which are publicly traded. Investments in non-public companies are recorded on the balance sheet at cost while investments in public companies are recorded at fair value, with the unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive income in shareholders' equity. The Company has invested cash of $161.9 million and committed to provide services with an estimated value of approximately $120.9 million under this program through September 30, 2000. In November 2000, the Company announced that it does not presently intend to make any additional cash investments through PSINet Ventures.
2) From PSINet's 10-Q dated Aug 14, 2000, within a section entitled NOTE 9 - COMMITMENTS AND CONTINGENCIES:
In February 2000, the Company announced the launch of PSINet Ventures, a new corporate ventures program. With a combination of cash investments and the exchange of services for equity, PSINet Ventures partners with innovative Internet entrepeurs through direct minority equity investments, typically during early and mid-stage financing. PSINet Ventures will focus globally on application service providers, or ASPs, content service providers, or CSPs, eCommerce providers, Internet infrastructure providers, incubators, and other emerging opportunities that enhance PSINet's financial and competitive technology and service positions. The services for equity structure permits the start-up company to purchase any PSINet service, including managed web hosting and VISP services, in exchange for equity rather than cash. As of June 30, 2000, PSINet Ventures owned equity in 80 companies, 6 of which are publicly traded. Investments in non-public companies are recorded on the balance sheet at cost while investments in public companies are recorded in accordance with FAS 115. As a result of these investments, the Company has invested cash of $150.3 million and committed services with an estimate value of approximately $71.2 million under this program through June 30, 2000. During the second quarter of 2000, the Company has recognized approximately $3.2 million in revenue as a result of this program.
3) PSINet's 424B3 dated Aug. 31, 2000; PSINet's 424B3 dated Aug. 8, 2000; and PSINet's S-3/A dated July 20,2000 each contain the following paragraph within a section entitled </>General:
In February 2000, we announced the launch of PSINet Ventures, a new corporate venture program. With a combination of cash investments and the exchange of services for equity, PSINet Ventures will partner with innovative Internet entrepreneurs through direct minority equity investments, typically during early and mid-stage financing. PSINet Ventures will focus globally on application service providers, or ASPs, content service providers, or CSPs, eCommerce providers, Internet infrastructure providers, incubators, and other emerging opportunities that enhance PSINet's financial and competitive technology and service positions. The services for equity structure permits the start-up company to purchase any PSINet service, including managed web hosting and VISP services, in exchange for equity rather than cash. |
