SOURCE: buySAFE

December 05, 2006 14:30 ET

buySAFE Secures Additional Funding From Grotech Capital Group and Core Capital Partners

Leading E-Commerce Trust and Safety Company Continues Momentum and Surpasses 10,000,000 Bonded Items Mark

ARLINGTON, VA -- (MARKET WIRE) -- December 5, 2006 -- buySAFE, the world's first and only company to use surety bonds to protect consumers in e-commerce transactions, today announced that it has closed equity financing from investors Grotech Capital Group, Core Capital Partners and other previous investors. With this investment, buySAFE has raised more than $21.25 million to date.

buySAFE is the leading trust and safety company for e-commerce transactions, working with marketplaces like eBay and Overstock.com as well as a growing number of independent retailers to boost consumer online trust and confidence. buySAFE Merchants have passed a rigorous certification process to ensure they are trustworthy, reliable, and committed to delivering on the promises they make to buyers. buySAFE also continuously monitors merchants' performance in every transaction and guarantees their purchases up to $25,000 using surety bonds from Liberty Mutual, ACE USA and Travelers.

"This additional funding helps buySAFE further its mission to make every online transaction trusted, reliable, and virtually risk-free," said Jeff Grass, buySAFE CEO. "As we expand our business beyond online marketplaces and into the broader e-commerce community, this funding will ensure that merchants and shoppers will enjoy a safer, more efficient online shopping experience."

The investment will help accelerate buySAFE's rapidly-growing business and adoption by online merchants and buyers. buySAFE recently bonded its ten millionth online transaction, and currently bonds more than 600,000 transactions per month.

"buySAFE has consistently proven its ability to help small- and medium-sized businesses increase buyer trust, thereby improving conversion rates and profit opportunities," said Joe Zell, general partner of Grotech Capital. "This funding enables buySAFE to make its unique solution available to an even greater range of merchants that can benefit from their service."

Jonathan Silver, managing partner of Core Capital added, "buySAFE's bonding technology makes e-commerce safer and more efficient for everyone -- buyers, merchants, and marketplaces. We believe that this value proposition is even more important as the number of online transactions increases."

In November 2006, buySAFE announced the launch of its Developers Network (http://developer.buysafe.com), allowing third-party developers to access buySAFE's API to integrate the company's trust signaling into retail Websites, marketplaces, and shopping applications. That same month, they also signed on two additional surety bond partners, ACE USA and Travelers.

About buySAFE

buySAFE, Inc. is the leading trust and safety company for e-commerce transactions. buySAFE qualifies merchants, identifies reputable online businesses with the buySAFE Seal, and uses surety bonds to provide broad protection for individual buyers from online transaction risks. The buySAFE bond is backed by Liberty Mutual, Travelers, and ACE USA for up to $25,000, and boosts consumer confidence for lesser-known online retailers, allowing them to compete with the big, established brands. buySAFE has issued more than 10 million surety bonds on individual online purchases. There are currently more than 1.5 million items bonded with buySAFE that can be found at www.buysafeshopping.com. buySAFE is headquartered in Arlington, Virginia. More information can be found at www.buysafe.com.

About Grotech Capital Group

Founded in 1984, Grotech Capital Group is one of the country's leading venture capital and private equity firms with a 22-year track record of helping to build successful companies. Grotech is focused on early- and growth-stage information technology investments and later-stage health care and consumer investments. Led by an experienced team of operating and private equity professionals, Grotech seeks investments where the combination of its financial backing, domain expertise, industry relationships, and operating experience will accelerate growth. The partnership manages $1 billion in committed capital from offices in Maryland and Virginia. To learn more about Grotech, please visit www.grotech.com.

About Core Capital

In business since 1999, Core Capital (www.core-capital.com) is a Washington, DC-based venture fund with over $370 million under management. The firm invests in a wide range of disruptive technologies, with a particular focus on telecommunications hardware and software, wireless applications, enterprise software, network security, e-commerce, logistics and tracking, energy and power management in addition to web and communications services. Core invests in both early-stage and later-stage companies. Sample portfolio companies include InPhonic, Sourcefire, NexTone Communications, buySafe, RoundBox, Trust Digital, Trinity Convergence, and IXI. To learn more, please email us at info@core-capital.com.

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