SOURCE: New Orleans Exchange

October 15, 2007 10:00 ET

The New Orleans Exchange Secures $4.2 Million in Series A Funding From Prism VentureWorks

Tech Mavens Create First U.S. Electronic Exchange for Buying and Selling Commercial Receivables

NEW ORLEANS, LA--(Marketwire - October 15, 2007) - The New Orleans Exchange announced today that it has secured $4.2 million in Series A funding from Prism VentureWorks to roll out its initial electronic trading platform, The Receivables Exchange ("TRE"), www.receivablesxchange.com, America's first electronic exchange for buying and selling commercial receivables.

The New Orleans Exchange was started by Justin Brownhill, Co-Founder and CEO, and Nicolas Perkin, Co-founder and President. Both are entrepreneurs with a wealth of experience in building and operating successful technology and financial services companies. Brownhill served as an executive of Lava Trading, a leading global Equities and Foreign Exchange trading technology platform acquired by Citigroup in 2004. Perkin was formerly Vice President of Global Business Development for Massive Incorporated, which was acquired by Microsoft Corporation in May 2006 for a reported $200-400 million.

The investment will be used to fuel the company's technology platform, build its sales and marketing efforts and attract industry-leading team members. The New Orleans Exchange's technology is built by Kestrel Technologies, Inc., the creators of the New York Stock Exchange's fixed income trading platform.

In addition to the funding, Prism's Jim Counihan and Will Kohler have joined the company's board of directors.

"TRE is an evolution in business financing," said Perkin. "Growing companies, often constrained by resources and time, have few means to ensure they are receiving the best rates on their working capital financing and typically cede control of their balance sheet to their financing institution without even knowing it. TRE brings transparency, efficiency and control to fund working capital and puts the ball back in the court of America's growing companies."

"We're pleased to have Prism as a partner and look forward to pioneering the next step in receivables financing together," said Brownhill. "Given the firm's heavy operational knowledge and strong history of success in growing technology companies, we believe our shared vision will bring this market opportunity to fruition."

Management estimates over $25 trillion dollars in accounts receivable are booked each year on balance sheets in Corporate America, valuing the asset class in the U.S. alone at nearly half the size of the global stock market. TRE provides a centralized marketplace for investors to trade accounts receivables, while serving as a competitive source for companies to fund their working capital.

"There is substantial opportunity for growth in online asset-based financing and The New Orleans Exchange is positioned to be the leader in creating a centralized marketplace for companies and financiers to trade," said Prism's Counihan. "We believe the company has the right team and vision to drive success."

The New Orleans Exchange

The New Orleans Exchange is an online exchange enabling businesses to electronically buy and sell asset-based instruments in a real-time, competitive auction environment. Its initial trading platform, The Receivables Exchange ("TRE"), is an online marketplace for trading accounts receivable. TRE provides a new dimension in working capital management by connecting companies to a nationwide network of lenders who compete in real time to buy and trade receivables. Exchange participants benefit from immediate and flexible access to working capital finance at the nation's most competitive rates. TRE is a fast and efficient way to manage working capital at a fraction of traditional financing costs. For more information, please visit www.receivablesxchange.com.

Prism VentureWorks

Founded in 1996, Prism VentureWorks (Needham, MA, Santa Monica, CA) is a venture capital firm built by experienced entrepreneurs in technology and life sciences. With approximately $1.25 billion in capital under management across five funds, Prism's primary goal is to deliver superior value to its investors. Its partners have served as the founders, CEOs and senior executives of numerous venture-backed companies. By leveraging its network of seasoned entrepreneurs, skilled executives and long-time industry contacts, Prism identifies and works closely with companies with the potential to be market leaders. For more information, visit http://www.prismventure.com.

Contact Information

  • Contact
    The New Orleans Exchange
    Darryll B. Gillard
    Marketing
    504-208-1937
    Email Contact

    Contact
    Prism VentureWorks
    Lisa Black
    Principal, LMBPR
    978-887-2771
    Email Contact