THCG Venture Partners I Acquires Stake in Internet-based Test Preparation Service.
NEW YORK--(BUSINESS WIRE)--January 11, 2000
THCG, INC. (NASDAQ: THCG) today announced that THCG VENTURE PARTNERS I ("THCG Ventures"), its venture funding vehicle, has acquired a 12% stake in Test University, Inc. ("TestU"), an Internet-based education company that intends to provide interactive and customized online test preparation courses that help students achieve superior results on standardized examinations, such as SAT, ACT, GRE, CPA and many others.
Pursuant to the arrangement with TestU, THCG arranged for approximately $3 million of capital, through THCG Ventures, to support TestU's growth. THCG Ventures also committed to provide the Company up to an additional $2 million of capital over the next 12 months. In addition, THCG will provide TestU with an array of Venture Banking services to support the execution of the Company's strategic plan. A senior manager of THCG, designated by THCG Ventures, has been appointed to TestU's Board of Directors.
Gary Anstey, Head of THCG's Venture Banking arm, said, "Test University's vision is to be the dominant global brand recognized for enabling anyone to successfully take a standardized test. We think this is a classic case that demonstrates how the Internet changes business as we know it. For a student preparing for a test, the ability to control the timing and length of the test preparation process and the level of intensity is very important. This is THCG's second involvement with the Internet-based education space after TechOnline, Inc. (www.techonline.com) which caters to the needs of electrical and design engineers. TestU has put together an impressive management team to execute the Company's strategy, and we are excited to join forces with them in the new venture."
Yaron Eitan, Chief Executive Officer of TestU, commented, "We approached THCG because of its Internet-focused vision, strategy and resources. THCG's ability to provide growth capital to TestU through its venture funding vehicle in such a short time frame was invaluable. We are now focusing on executing our business plan - providing the "ultimate learning environment" for test preparation. We look forward to working with THCG on devising and executing a comprehensive funding plan for Test University. The Company is expected to launch its services within the next 60 days."
THCG is a global Internet business creation firm providing venture development, venture banking and venture funding products and services. THCG's mission is to build dominant companies by partnering with leading Internet entrepreneurs and traditional brick and mortar companies migrating to the Internet. THCG has equity interests in a client portfolio of Internet-related companies including ETRAVNET.COM, Inc. (OTC BB: ETVT, www.travnet.com), iBeauty.com (www.ibeauty.com), Interleaf, Inc. (Nasdaq:LEAF, www.interleaf.com), IT Utility, Inc. (www.itutility.com), LogNet Systems Inc. (www.lognet.co.il), TechOnLine, Inc. (www.techonline.com) and Test University, inc. THCG also has equity interests in more than 10 additional Internet-related companies, including RealTimeImage Inc. (www.realtimeimage.com), SoftWatch Ltd. (www.softwatch.com), SunShine Media Corporation (www.bikini.com) and webMethods, Inc. (www.webmethods.com). THCG's web site is located at www.thcg.com.
About Test University
Test University, Inc. is a test preparation service provided over the Internet to help students achieve superior results on any standardized examination. Test University was founded by a team of seasoned entrepreneurs, educators, marketers, technologists and venture capitalists to fully exploit the new demand for test preparation services created by an increasingly achievement-oriented, heavily-credentialed and information-based society. For further information contact Ariel Galinski, Vice President, Corporate Development, at (973) 785-1774.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, risks associated with start-up and early stage enterprises, risks associated with providing services over the Internet, and other risks described in the Company's Securities and Exchange Commission filings.
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|Date:||Jan 11, 2000|
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