April 5, 2000 Announces $100 Million Financing Round

Leader in Email Payments Will Continue Rapid Customer Growth

PALO ALTO, Calif., April 5 /PRNewswire/ -- Corporation (, creator of the world's largest email payments network, today announced a $100 million equity financing round from Madison Dearborn Partners and other new and existing investing partners.

"We've had a tremendous response," said Peter Thiel, Executive Vice President for Finance and Strategy. "Our financing round was substantially oversubscribed, as we've seen a great deal of enthusiasm about participating in's unique and exponentially growing financial platform."

"The magnitude of this round highlights the value of's position as the leader in Web-based payments," said Corporation Chairman Elon Musk. "With the strategic and financial assistance of an outstanding investor group, we expect to continue our aggressive customer acquisition, to expand our service internationally, and to support mobile device platforms for e-commerce transactions."

In addition to Madison Dearborn, a phalanx of leading investors is participating in this Series C funding round.

-- International investors include Singapore-based Temasek, Vertex and Development Bank of Singapore; Japan-based Compass Partners and Hikari Tsushin; and TAMC of Taiwan.
-- Two leaders in wireless technology, QUALCOMM and Singapore Telecommunications, are also making investments in this round.
-- Additional investors include LabMorgan, J.P. Morgan's e-finance unit; funds managed by Capital Research and Management Company; Digital Century Capital; and Bayview 2000, an affiliate of Robertson Stevens.
-- Finally, previous investors Sequoia Capital, Deutsche Bank, the Goldman Sachs Group, Inc., idealab Capital Partners, and Elon Musk are participating in this round as well.

"Madison Dearborn Partners is excited about this investment in -- the world's leading Internet and wireless-based payments company. has an incredible opportunity to build the first global payments operating system," said Tim Hurd, MDP's Director. "'s cash-based network offers a real-time, secure 'anytime, anywhere' payment solution that finally meets the needs of today's mobile, electronic economy. MDP's investment in is consistent with our investment objective of backing outstanding management teams of leading, innovative companies that have a significant first mover advantage in very large, attractive segments of the economy."

Madison Dearborn Partners acted as lead investor in this round of financing, and MDP's Tim Hurd will join's Board of Directors. " has acquired over 1 million customers in the four months since its launch, including those of online payment provider PayPal, with which merged last month. X's PayPal service ( is the preferred payment service on eBay and other online auction sites, and the payments provider of choice for the Internet's leading virtual community sites eGroups and eCircles.

About Corporation provides an instant and secure email payment service, integrated with consumer and business financial services. With a customer base of over 1 million, is the largest web-based payment network on the Internet, and the number-one method of payment for online auctions. Corporation is headed by Elon Musk, who previously founded Internet media company Zip2 in 1995, which he sold last year for over $300 million to AltaVista, now a division of CMGI. Bill Harris, formerly CEO of Intuit, joined last fall as CEO and President. Last month, merged with, the leading email payment service. CEO Peter Thiel is now Executive Vice President of Corporation.

About Madison Dearborn Partners

Madison Dearborn Partners (MDP), headquartered in Chicago, is a leading private equity investment firm with more than $7 billion of capital under management. MDP focuses on management buyouts and growth equity transactions involving rapidly developing companies. MDP has significant investment experience in several specific industries, including financial services, communications, basic industries, consumer/e-commerce, and health care.

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SOURCE: Corporation