Chicago's Fob.com Closes $5 Million Private Equity Round.CHICAGO--(BUSINESS WIRE)--Sept. 28, 1999-- Entrepreneurs Patrick Blake and Greg Buchholz have raised a total of $5 million from individual investors to establish and begin operations of a new Internet See Web 2.0 and Internet2. company - fob.com. Previously, Mr. Blake co-founded and was President of Tunes.com, a leading online music network, which included Rollingstone.com. Mr. Buchholz, formerly of Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , has spent the last four years managing his own private equity firm - Court Capital. Fob.com is a business-to-business e-commerce company focused on web enabling and streamlining the process of manufacturing input material procurement. This first round of capital will be used to deploy the company's Centralized Aggregate Purchasing System (CAPS(TM)) - a database application and Intranet tool-set which enables companies to outsource the purchasing of manufacturing materials. "The business-to-business e-commerce market is on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of significant growth," said fob.com investor Peer Pedersen, chairman, Pedersen & Houpt. "Pat Blake and Greg Buchholz have the vision to get in on the ground floor and are capitalizing on this emerging opportunity with their newest venture." In addition to Peer Pedersen, fob.com's investor list includes Craig Duchossois - CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Duchossois Industries, Paul Davies - Chairman of Aon Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , Dean Buntrock - former CEO of Waste Management and Andrew Filipowski - former CEO of Platinum Technology. "Traditionally, every manufacturing or service-process company has employed a purchasing department using an internal offline system to source input materials," said Pat Blake, fob.com CEO and co-founder. "By using the Internet as a ubiquitous networking tool, our Centralized Aggregate Purchasing System (CAPS(TM)) allows companies across entire industries to centralize their purchasing, reducing both material prices and transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). ." About The Centralized Aggregate Purchasing System (CAPS(TM)) Currently, 22 percent of the world's GDP GDP (guanosine diphosphate): see guanine. consists of manufacturing or process input material procurement. Centralizing and outsourcing scalable functions such as purchasing will be a critical source of competitive advantage, directly affecting the bottom line for all product and process manufacturing companies. In September 1999, fob.com launched CAPS(TM), which is a proprietary Internet database application and tool-set enabling the easy assembly, collation COLLATION, descents. A term used in the laws of Louisiana. Collation -of goods is the supposed or real return to the mass of the succession, which an heir makes of the property he received in advance of his share or otherwise, in order that such property may be divided, together with the and storage of diverse purchasing information from a large customer population. Each individual user enjoys both easy access and total security while reaping the benefits of centralized and outsourced purchasing. No other company has developed the vertical purchasing hub model or built the required Internet database application, giving fob.com the first mover and leadership position in this substantial business-to-business space. According to Steven Kaplan, Neubauer Family Professor of Entrepreneurship and Finance at the University of Chicago Graduate School of Business Recruiters also voice a strongly positive opinion of students. According to BusinessWeek's biannual MBA rankings: "Chicago's grads were hands-down favorites in our survey of companies that hire MBAs. , "fob.com uses the Web to provide a powerful mechanism to consolidate buyer power. Fob.com allows raw material buyers to materially lower their costs." Please note: Patrick Blake and Greg Buchholz are available for interviews. To arrange for an interview, please contact Dan Ciancio at 312/233-1310. Photos of Patrick Blake and Greg Buchholz are available upon request. |
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