RealTime IT News

Nexchange Receives $9 Million in Second-Round Funding

Nexchange Corp., which has a patent-pending process that allows brand name retailers to insert customized storefronts into thousands of relevant content sites, received a $9-million second round equity financing commitment.

The first phase was closed on Aug. 20, and the remaining funds will be closed by year-end. The equity infusion comes from a group led by Interprise Technology Partners LP.Nexchange said it will use the net proceeds from the investment to expand its sales, marketing and operations.

"We have found more than money, we have found people who add significant value and see the future of e-Commerce," said Daniel D. Ross, chairman of Nexchange.

"Nexchange is exactly the kind of investment our company was established to find," said David R. Parker, managing principal at Interprise Technology Partners. "It has great management, a solid business model and substantial upside."

Nexchange said it now offers more than 50,000 name brand products to its network of more than 3,500 host Web sites representing over 16,000 stores. In the last 30-days, Nexchange has signed a number of key retail merchants including shoe selling giant Just For Feet and has also signed an agreement with MindSpring Enterprises Inc. to become a preferred e-commerce provider to the more than 55,000 MindSpring Biz customers.

In addition, Nexchange and LiveUniverse.com, a Rare Medium Group Inc. company, reached agreement whereby LiveUniverse will integrate the Nexchange solution as one of the tools offered to more than 60,000 member sites.