RealTime IT News

E-greetings Network Raises $25 Million in Venture Capital

San Francisco-based E-greetings Network said it has raised $25 million in new venture capital financing, increasing total equity investment in the company to $35 million.

The lead investor in this round of financing is Weiss, Peck & Greer. Other new investors include Vulcan Ventures, New Enterprise Associates and Information Technology Ventures. Existing investors Altos Ventures and Gibson Greetings also participated.

Stewart Alsop, a general partner of New Enterprise Associates, joins the company's board of directors. Also joining the board is Peter Nieh, a partner at Weiss, Peck & Greer.

"There is tremendous upside potential to E-greetings Network. Enhanced e-mail is a remarkable new form of social communication that is becoming more popular every day. The company's real opportunity now is to establish long-lasting relationships with customers to build the E-greetings brand, which we believe has the potential to become one of the top brands on the Internet," Alsop said.

"Securing this new $25 million investment provides us with a substantial war chest and enables us to expand the company even more rapidly," said E-greetings Network Chief Executive Officer Gordon Tucker.

In the four months since making E-greetings free of charge to consumers, the company said it has registered more than 3.5 million customers, who have sent more than 10 million E-greetings digital postcards and animations.

"Our opportunity now is to leverage this explosive interest to become the Internet's premier hub for enhanced e-mail communication and e-commerce transactions," said Tucker.