SOURCE: ServiceSource

June 28, 2005 04:00 ET

Benchmark Capital Funds Profitable ServiceSource

Premier Silicon Valley Venture Capital Firm Funds Leading Outsource Sales Organization

SAN FRANCISCO, CA -- (MARKET WIRE) -- June 28, 2005 -- ServiceSource, an outsource sales organization focused exclusively on increasing support and maintenance revenue for technology companies, today announced $10M in funding from Silicon Valley-based Benchmark Capital. This recent funding is combined with existing investments from Housatonic Partners, high-tech executives and other notable individual investors. ServiceSource joins Benchmark Capital's prestigious list of successful portfolio companies, which includes eBay, Juniper Networks, and Red Hat. ServiceSource will use the recent funding to acquire new customers, scale operations and expand its global reach.

"ServiceSource has capitalized on a tremendous market opportunity to uncover and close more service revenue for high-tech companies, which is especially important in a period of weaker IT spending," said Benchmark Capital general partner, Bruce Dunlevie. "ServiceSource sets a new level of accountability, working only on a pay-for-performance basis as it delivers significantly increased revenue for its clients. We believe the company's blue-chip client base, history of profitability and clear market leadership make it a compelling investment opportunity."

"We are growing at an extraordinary pace, but we are profitable and we weren't actively pursuing funding," said ServiceSource's CEO, Mike Smerklo. "When Benchmark approached us, we jumped at the opportunity to work with one of the brightest, most talented groups of venture capitalists in Silicon Valley. We feel fortunate to have Benchmark's insight as we deepen our relationships with domestic clients and accelerate our international expansion. This investment allows us to evolve our service offering more quickly, while remaining focused on exceptional client satisfaction."

Since its inception in 1999, ServiceSource has been committed to the single purpose of helping high technology companies maximize the revenue from annuity service streams. Working with ServiceSource, clients improve overall renewal rates, reduce contract discounting and tap into incremental revenue by up-selling customers to higher service levels, consolidating contracts and co-terminating renewals.

About Benchmark Capital

Benchmark Capital was founded in 1995 to help talented entrepreneurs build great technology companies. Benchmark's partners take a team-oriented, labor-intensive approach to venture investing to deliver a superior level of service to the firm's portfolio companies. Benchmark's portfolio includes franchise companies such as eBay, Juniper Networks and Red Hat. Managing more than $3 billion in committed venture capital, Benchmark focuses on investing in entrepreneurs with original ideas. For more information on Benchmark, visit its web site at www.benchmark.com.

About ServiceSource

Profitable since its inception in 1999, San Francisco-based ServiceSource is dedicated solely to maximizing support and maintenance revenue for technology companies. Within the technology industry, support and services revenue totals over $60 billion, and companies typically realize only 84% of their maximum opportunity. It is this revenue gap that ServiceSource uncovers, manages, and closes on behalf of its clients. ServiceSource clients benefit from improved financial performance and a higher level of predictability in their annuity stream. The company is privately held with funding from Benchmark Capital. For more information on ServiceSource, visit www.servicesource.com or call 415.901.6030.

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