Business Editors
MENLO PARK & SANTA CLARA, Calif.--(BUSINESS WIRE)--April 18, 2000
Dialpad.com, the nation's leading free Internet phone service, has secured a $16.75 million initial round of venture funding led by CMGI @Ventures, the venture capital affiliate of CMGI, Inc. (Nasdaq: CMGI). Additional investors include Sterling Payot Company and Serome Technology Inc, the leading Korean Communications Software Company that spun-out Dialpad.com last year. Proceeds of the funding will help grow the company's management team and employee ranks, and help propel consumer marketing activities that will drive new member sign-ups.
Dialpad.com is the third company to receive funding from the $1 billion CMGI @Ventures IV Fund since it was formed in December of 1999. CMGI @Ventures General Partner Brad Garlinghouse takes a seat on Dialpad.com's Board of Directors, as does Josh Huffard, General Partner with Sterling Payot The Board also includes Dr. Hyunduk Ahn, CEO at Dialpad.com and Sangsu Oh, CEO of Serome Technology KK, and a new member to be named later.
Dialpad.com gives Web members the ability to call any U.S. phone number, including residential, business and cell phones, and talk for as long as they like for free. There are no complex set-up procedures or hardware requirements - just a simple registration process and a quick Java software download. There are no credit cards needed or hidden charges. The company enables members to bypass long-distance telephone charges entirely by using the convenient new service. The company generates revenue through its advertising banners, sponsorships and licensing fees from other Internet companies that integrate the service into their site offerings.
Web users log on to http://www.dialpad.com and follow the easy process to join the new Web service. Once a member has logged on to the site, a Java applet pops up and members can punch in a phone number and talk through a microphone or recommended headset for as long as they like - for free. Dialpad.com members making free phone calls can continue to surf the Web and use Web applications as they talk. The service is simple and convenient, requiring only a standard multimedia PC with a sound card.
"With more than 5 million members joining since its launch in October, 1999, Dialpad.com has grown more quickly than any other Web service in the history of the Internet economy. We predict it will reach ten million users in half the time it took even our most viral sites and Web-based services to grow - including GeoCities," said Brad Garlinghouse, General Partner with CMGI @Ventures. "Dialpad.com has already struck important partnerships with key industry leaders including Genuity, ITXC and eVoice and we look forward to working closely with Dialpad.com as it enables the rapid growth of Internet telephony both in the U.S. market and abroad. The opportunity for exponential growth, new services and continued innovation is immense as people everywhere discover the enormous cost-savings Dialpad.com delivers." The firm's contribution will be disbursed from its $1 billion CMGI @Ventures IV Fund.
"We have been working with the CMGI @Ventures team for a number of months now and are very pleased to join their network of 70 Internet companies and to offer our free Internet phone service to their user-bases," said Dr. Hyunduk Ahn, CEO at Dialpad.com, Inc. "What is most exciting to us about this relationship is that it brings extremely valuable insights to us and will help us to develop and execute on new strategies and gain access to new industry contacts. Dialpad.com is providing real value to a customer base that expands by one user every second."
Since the site's launch in October of 1999, Dialpad.com members have made more than 60 million entirely free Internet phone calls with an average duration of 5.06 minutes per call. In March of this year, 1.9 million unique users made more than 22 million free calls using Dialpad.com - meaning that almost 40 percent of total members were active users of the service.. Advertisers benefit as well with Dialpad.com generating roughly 8 million ad impressions per day with click-through rates that are above industry averages.
About Dialpad.com, Inc.
Dialpad.com, Inc. is a privately held, Silicon Valley Internet company that has developed the nation's leading free calling service for the Internet. With the development of its advanced VoIP technology, integrated with targeted online advertising programs, Dialpad.com is able to offer its patent-pending, Web phone services at no cost to the end user. Dialpad.com offers members an easier, more convenient way to communicate live on the Internet.
About CMGI and CMGI @Ventures
With more than 70 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet businesses in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands, 1stUp.com, Activate.net, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviNet, SalesLink, Tribal Voice and yesmail.com. CMGI @Ventures has ownership interests in 54 Internet companies, including Lycos, Inc. (Nasdaq: LCOS), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), MotherNature.com (Nasdaq: MTHR), Ventro (Nasdaq: VNTR) and Vicinity (Nasdaq: VCNT).
CMGI's corporate headquarters is at 100 Brickstone Square, Andover, MA 01810, Tel: 978-684-3600. CMGI @Ventures has offices there as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional information and a complete listing of the CMGI and CMGI @Ventures companies, see http://www.cmgi.com and http://www.ventures.com
About Sterling Payot Company
Since the completion of its three-year Pacific Telesis/AirTouch project in 1993, Sterling Payot Company has focused its strategic and financial advisory activities on the emerging telecom and Internet landscapes. The company's work with Telesis and AirTouch, Visa International, Metricom and Wired Ventures have placed it front-and-center in the dramatic forces of change that "connectivity" have brought to both consumer and business environments. For more information on Sterling Payot Company, see http://.www.spcom.com
About Serome Technologies
Serome Technology KK, founded in 1993, is the leading communications software and Internet company in Korea. The company has refined its expertise in emoerging technology categories including video-conferencing, multimedia and voice-over Internet Protocal (voIP) and related Internet technologies serving the business-to-consumer and business-to-business markets.
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