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
“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.”