E-Stamp Corp was one of several technology companies to announce significant funding this week, as the San Mateo, California based internet postage firm closed a third round of equity financing totaling $30.2m. Previous investors Microsoft Corp, Compaq Computer Corp, AT&T Ventures Inc and Canaan Partners were joined in the latest round by Excite@Home Corp and a number of other unnamed investors.
The company, which last week claimed to be the first internet postage company to begin shipping products following the receipt of US Postal Service approval, said it intends to use the proceeds from the financing to continue its marketing efforts, expand distribution channels and continue developing its customer service infrastructure. Donaldson, Lufkin and Jenrette Securities Corp assisted the company in placing the round of funding.
Meanwhile, Desktop.com Inc said it closed $29m in its first round of financing from Accel Partners, the executives of Kohlberg Kravis Roberts & Co and Sequoia Capital. The San Francisco-based company offers a free web-based service that provides a graphical interface and application platform for use over the internet. Desktop.com says it will use the funds to market and launch its service this fall.
The company claims that from any net-connected PC running a standard web browser, Desktop.com users can create and access their own customized web desktop that integrates the sites and services they use. The Desktop.com platform is said to be designed so that anyone can contribute an application to the service. In connection with the funding, founder and former CEO of Lotus Development Corp Mitch Kapor, currently of Accel Partners, will serve as a director on the Desktop.com Board.
E-commerce software provider Selectica Inc also closed financing this week, as the San-Jose-based company raised $20m in its mezzanine round of venture capital funding, bringing total investments to $31.5m. First-time investors included lead investor JK&B Capital, Quantum Industrial Holdings Ltd and Itochu Corp. Previous Selectica backers Draper International, Draper Fisher Jurvetson, The Chatterjee Group and Zilkha Venture Partners also contributed. Selectica says it will use the new funding to continue building and marketing its internet selling system, which it claims provides a virtual sales advisor to support unassisted, buyer-driven purchases on the web.
