Microsoft and 3Com Invest in Avantgo
BUSINESS WIRE - 08:00 a.m. Jun 18, 1999 Eastern
Mobile Computing Leader Takes $14.7 Million in Third
Round Funding From Microsoft, 3Com, Fayez Sarofim & Co.,
21st Century Internet Venture Partners, H&Q
Venture Associates and Adobe Ventures
SAN MATEO, Calif.--(BUSINESS WIRE)--June 18, 1999--
AvantGo, Inc., the authority in managing mobile information, today announced
that it has secured third round equity investments totaling $14.7 million from
prominent industry leaders Microsoft Corp. and 3Com Corporation, respected
investment management firm Fayez Sarofim & Co., which led the round, and
well-known venture capital firms 21st Century Internet Venture Partners, H&Q
Venture Associates and Adobe Ventures.
The company also announced that Gregory Waldorf was selected by the new
investors to serve on AvantGo's Board of Directors, effective immediately.
The announcement follows the tremendous momentum that privately held
AvantGo has gathered in the handheld marketplace. AvantGo recently launched
AvantGo.com, the first, free interactive service to deliver personalized information
to handheld users with Windows CE-compatible and Palm OS(TM) devices.
AvantGo.com demonstrates the scalability and reliability of the company's
flagship AvantGo Server, software that takes advantage of Web technology to
enable enterprises to build, deploy and manage mobile applications on handhelds.
"We are delighted to be making an investment in AvantGo which has taken an
open Internet approach to delivering content to mobile devices. The company has
great relationships with branded content publishers, and one of the most
compelling enterprise applications we've seen for the Windows CE platform,"
said Jonathan Roberts, general manager for the productivity appliance division at
Microsoft Corp.
"AvantGo's software takes advantage of many high-value features available in
Windows CE-based devices, including color, audio, high resolution displays and
memory capacity. We look forward to working even more closely with AvantGo
and its content partners to deliver the powerful mobile solutions that consumers
want and enterprises demand."
"Today, corporations are looking for ways to leverage their investment in Palm
Computing(R) platform devices by expanding user access to mission-critical
data," said Michael Dolbec, 3Com's Vice President of Business Development.
"AvantGo extends the web to the entire family of Palm(TM) devices in a useful
and convenient way, allowing users to download important corporate intranet and
Internet data to any Palm device and stay more connected. This equity stake in
AvantGo represents 3Com's continuing investment in the infrastructure of the
Palm Economy."
"AvantGo is extremely well positioned in the industry and we were ecstatic to find
a company that industry rivals Microsoft and 3Com could agree on," said David
Pesikoff, principal of Fayez Sarofim & Co. "Investing in AvantGo was an easy
decision and one that we expect to pay off handsomely."
Both International Data Corp. (IDC) and Forrester Research forecast explosive
growth in the handheld market with estimates that there will be more than 25
million individuals using Internet-connected handhelds in the US by 2002. Based
on these predictions, the handheld-related software platform market should exceed
$1 billion by 2002.
Additionally, GartnerGroup's Dataquest expects that handheld computers based
on 3Com's Palm OS software and Microsoft's Windows CE operating system
will gain market share at the expense of proprietary offerings. Palm OS software
and Microsoft's Windows CE accounted for 67 percent of handheld shipments in
1998. In 2003, the two platforms are forecast to account for 92 percent of the
market.
"We are delighted to have both Microsoft and 3Com as equity partners. Their
investments are a ringing endorsement of AvantGo's open solutions that are
driving the adoption and success of handheld devices in the marketplace," said
Felix Lin, CEO of AvantGo.
"The encouragement of these industry leaders creates even more momentum for
AvantGo, the leading solution for individuals and companies that want to access,
build, deploy and manage mobile applications on handheld computers."
About 3Com Corporation
With more than 200 million customers worldwide, 3Com Corporation connects
more people to information in more ways than any other networking company.
3Com delivers innovative information access products and network system
solutions to large, medium and small enterprises; carriers and network service
providers; PC OEMs; and consumers. 3Com -- More connected(TM).
For further information, visit 3Com's press site at www.3com.com/pressbox.
About Fayez Sarofim & Co.
Founded in 1958, Fayez Sarofim & Co. is a privately held investment
management corporation, which currently manages assets of approximately $60
billion.
About 21st Century Internet Venture Partners
21st Century Internet Venture Partners (www.21vc.com) is a $55 million venture
capital fund exclusively for internet entrepreneurs. The company is located in both
San Francisco and Palo Alto, Calif. Their areas of interest include (but are not
limited to) Internet and intranet-related software and tools, Internet media, and the
emerging Internet-enabled digital economy.
21st Century Internet has backed several privately held internet companies
including AdForce (Nasdaq:ADFC), AvantGo, CareerBuilder (Nasdaq:CBDR),
Employease, GreenTree, Vicinity and When.com (merged with Nasdaq:AOL.)
21st Century Internet was founded upon a belief that the Internet is both opening
significant new markets in the technology industry, and precipitating wholesale
transformations in other industries throughout the economy.
About H&Q Venture Associates
H&Q Venture Associates, LLC (HQVA) was founded in July of 1998 as a
successor to the Venture Capital Department of Hambrecht & Quist. HQVA
provides early-stage technology companies with value-adding equity financing
through a number of limited partnerships including Adobe Ventures and TI
Ventures.
HQVA's areas of expertise include enterprise software, communications systems
and services, publishing related software and services, and the Internet. H&Q
Venture Associates currently manages over $250 million invested in over 50
portfolio companies across the United States.
HQVA maintains strategic relationships with Hambrecht & Quist and WR
Hambrecht+Co. For more information, please visit www.hqva.com.
About Adobe Ventures II
Adobe's core technologies and flagship applications have consistently helped
generate product and service opportunities for other companies. Continuing in this
tradition, Adobe launched Adobe Ventures in partnership with H&Q Venture
Associates (HQVA) in 1994 to invest in innovative companies strategic to Adobe's
software business.
Adobe Ventures portfolio companies make a broader set of solutions available to a
wide array of computer users from the enterprise user to the professional graphic
designer. Adobe and HQVA launched Adobe Ventures II in 1997 to build on the
success of the initial fund.
Since inception, the Adobe Ventures funds have invested in such industry leaders
as ESPS (Nasdaq:ESPS), Salon.com, Siebel Systems (Nasdaq:SEBL) and
Vignette (Nasdaq:VIGN). For more information, please visit
www.adobe.com/aboutadobe/adobeventures/main.html or www.hqva.com.
About AvantGo
The authority in managing mobile information, AvantGo, Inc. offers solutions for
extending Web-enabled, enterprise and consumer applications to handheld
computers such as those based on the Palm Computing (Nasdaq:COMS) and
Microsoft (Nasdaq:MSFT) Windows CE platforms. The company recently
launched AvantGo.com, a free service for accessing personalized Web content
from leading partners.
AvantGo also spearheaded the Mobile Application Link initiative, an open,
industry standard for connecting mobile devices to server-based applications. For
more information, please visit the company's Web site at www.avantgo.com or
call 650/638-3399.
For more information or to interview representatives from the participating
companies, please contact:
3Com: Leslie Davis,
Leslie_Davis@3com.com, 408/326-7187
Fayez Sarofim & Co.: David Pesikoff, 713/654-4484
21st Century Internet Venture Partners: Shawn Myers,
shawn@21vc.com,
415/512-1221
H&Q Venture Associates: Chris Hollenbeck,
chollenbeck@hqva.com,
415/439-3696
Adobe Ventures II: Chris Hollenbeck,
chollenbeck@hqva.com, 415/439-3696
Gregory Waldorf, Pacific Edge Investment Management, 650/325-3343
Copyright 1999, Business Wire
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