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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: tktom who wrote (6072)	6/6/1999 2:10:00 PM
From: Alex	Read Replies (1) \| Respond to of 20297

... thought you wanted to know... ----------- From the Atlanta Journal-Constitution Start-up gets $12.5 million in funding By Mark Clothier STAFF WRITER Derivion, an Alphareta start-up that handles bill-paying for phone companies, banks and utility companies, received $12.5 million in funding Friday from PTEKVentures and Greystone Capital. Greg Rable, Derivion's 30-year-old chief executive, said he plans to use about $2 million to make Derivion more of a force in the electronic bill-paying and bill-presenting world, now dominated by CheckFree of Norcross. The electronic bill-paying and bill-presenting industry is just starting to get its legs. It was a $1 billion industry in 1997. According to a 1998 study by Killen & Associates, a Palo Alto, Calif., research firm, it will be an $18.8 billion market by 2005. Derivion sees itself as a service company, targeting midsize companies, which it defines as those sending out between 50,000 and 1 million bills a month. Derivion charges companies that send recurring bills a fee for each transaction usually between 25 cents and 30 cents a customer, per bill, each month. The company handles the entire process of posting a bill on a Web site: Letting people know the option is available,enrolling people in the program, and taking the bill data and converting it in to a form that can be posted on the Web. "There's lots of companies trying to sell a software solution that's $150,000 a pop,"Rable said."We saw a definite need:Let's put something together and outsource it. It's cost-effective, and the companies still enjoy the benefits. You hear all about the companies with deals with the top 100 billers, but there are 9,900 others. We want as much of that market share as possible." Avi -------- NEWS PART 2 !!!!!!!!!!!!!!!! by: stockup2win (40/M/west georgia) 10357 of 10377 !!!!!!(CONTINUED)!!!!!!!!!! Scanner not working so I'll do my best to type. From the Atlanta Journal-Constitution Start-up gets $12.5 million in funding By Mark Clothier STAFF WRITER We want as much of that market share as possible." Avivah Litan, an analyst with Gartner Group, said Derivion's low start-up fees--it claims between $25,000 and $50,000--make it very attractive."I hear from billers all the time, and they don'twant to invest $300,000 to $500,000 for software,"she said."If Derivion can do what it says, it should succeed. It should capture market share." Litan said the competition for companies with similar business plans is heating up."There's a very small window of opportunity." Derivion has contracts with 21 companies, four of which let their customers veiw and pay their bills on the Web site now. Of the potential 200,000 customers represented by the four companies, about 3 percent, or 6,000, are paying their bills that way. Derivion also plans to launch a Web site, www.allmybills.com, where people can go to view and pay several bills from different companies. The company started in February 1998, working out of an upstairs room in Rable's Alpharetta home. In February, Derivion took 1.1 million from Bert Ellis, head of iXL;Boland Jones of Premiere Technologies; Rex Fuqua of Fuqua Ventures; and Sergeo Zyman, who was chief marketing officer for Coca-Cola, who now sit on the Derivion board. PTEKVentures is the investment arm of Premiere Technologies. Derivion employs 38 people, 17 in an Alpharetta office on North Point Parkway. -------