FOR IMMEDIATE RELEASE
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Robert P. Gerometta, EVP Planning
2Xchange Holds Final Close on $1,000,000 Seed Raise
Angel Investors Include Mark Tebbe of Lante Corporation
Chicago – GBUCs, L.L.C d/b/a 2Xchange announced today that it held a final close on $1,000,000 of seed financing. The Chicago-based company held a first close on $500,000 in March, using the proceeds to fund development of a new business-to-business e-commerce platform. 2Xchange said it held a final close on the remaining $500,000 of the seed financing this month and is using the proceeds to fund further development of its technology while it raises additional capital to execute its strategy.
Several angel investors provided financing, including Mark Tebbe, Chairman of Lante Corporation, Daniel Stern of Morgan Stanley Dean Witter and Dr. Ron Michaels, a prominent Chicago neurosurgeon and active angel investor.
The company’s technology platform, which is being marketed to Fortune 1000 and Global 2000 companies, will enable these companies to trade goods and services over the Internet using an e-currency created by 2Xchange called, Global Business Usage Currency (GBUC). 2Xchange has been in discussions with Fortune 1000 companies and has already received letters of interest from several of these companies to take part in a pilot program planned for later this year.
In addition to capital raised from angel investors, the company’s founders invested $250,000 of their own money in May of last year to conduct a feasibility study, gather research on the market for corporate non-cash trade and explore available technologies to design and develop its platform.
“Our research indicated that between $600 billion and $1.2 trillion of non-cash commerce is transacted annually between companies and countries throughout the world,” said Stephen Meade, President and CEO of 2Xchange. “A significant portion of these transactions is carried out manually by and among large, multinational corporations. No one has yet to take a leadership role in bringing an efficient e-commerce model and enabling technology to this segment of the industry,” he added.
Mr. Meade says his company’s business model has been well received by prospective customers. “We are bringing new technology to the industry, with tangential applications in other segments of the market. It’s a win-win situation for the customer. We provide the tool to lower transaction costs by increasing efficiency through an enabling web-based application, while offering access to a global community of companies that already take part in non-cash commerce, or to those that haven’t yet found an efficient model to employ.”
2Xchange has filed several patents on its technology, which it believes will become the standard for conducting non-cash commerce in the future. In addition to offering the non-cash payment option through its own website, the company plans to license the technology to other online business-to-business websites, thus enabling these sites to offer a non-cash payment option to their constituencies. In either case, 2Xchange maintains the flow of GBUCs throughout the world and handles all backroom functions, such as transaction processing, settlement and record keeping.
2Xchange has assembled a management team around the founders, which in addition to Mr. Meade, includes Robert P. Gerometta, a former Commissioner of the City of New York. Mr. Meade sold his last e-commerce venture, VirtualSellers.com, a transaction-processing firm, to a Canadian public company last year.
In addition to the founders, 2Xchange’s management team includes chief technology officer, John Murray, a veteran technology executive who directed major infrastructure projects for Monsanto, Searle and IBM. Mr. Murray is directing development of the company’s technology infrastructure and is also overseeing a team of programmers and web designers charged with completing the company’s trading platform. Cameron Schmidt, a former head of sales for Hitachi America, was recently hired to spearhead business development with Fortune 1000 and Global 2000 customers.
“We’ve accomplished a lot in the short time since we founded the company last year,” said Mr. Gerometta. “Our systems are about eighty-percent complete and we have had favorable feedback from all of the prospective end-users of the platform that we have surveyed thus far. With our next round of financing, we will complete build out of our platform and beta test with live end-users. That will give us the traction and visibility we need to scale the platform globally.”
2Xchange is located at 68 East Wacker in Chicago, Illinois.
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