RealTime IT News

NetBuy Secures $4.1 Million Second-Round Investment

NetBuy, an e-commerce purchasing service for electronic components, said that it concluded a second round of venture financing totaling $4.1 million, bringing total venture capital investment to over $7 million.

Venture capital firms participating in the second round of financing include first-round investors The Sprout Group, a venture capital affiliate of Donaldson, Lufkin & Jenrette; the Euro-America Group; and Amdahl Corp., along with new investor Advent International.

NetBuy, a B-to-B operation, was founded in 1996 with initial funding from Amdahl Corp.

"We're extremely pleased to have secured renewed backing from our original investors and to welcome Advent International to our investor group," said Jim Wittry, CEO of NetBuy.

"This second round of financing will enable us to expand our online inventory to $1 billion and beyond with the aggregated inventory from virtually every major electronic component distributor," he added. "The investment also allows us to expand our marketing efforts in communicating our reduced cost of acquisition benefits to professional buyers."

"NetBuy is on target in demonstrating the true value of business-to-business E-commerce for the electronic component industry," said Alex Rosen, vice president of The Sprout Group. "As the company's unique e-commerce purchasing service gains visibility, distributors and buyers alike are realizing the benefits of NetBuy's real-time fulfillment model."