DriveCam, Inc. Completes $18 Million Series B Financing; Menlo Ventures and JMI Equity Provide Funds for Rapid Market ExpansionSAN DIEGO--June 22, 2005--DriveCam, Inc., the leader in knowledge-based systems that improve driving behavior, today announced that it has secured $18 million in Series B financing. Menlo Ventures, a Silicon Valley investment firm, invested $10.7 million; JMI Equity, a San Diego private equity firm, participated with a $7 million investment; DriveCam management also contributed. The funds will be used to accelerate growth in markets, products, people and infrastructure to capitalize on DriveCam's first mover advantage and growing demand for its driver behavior modification systems.
"DriveCam has a compelling story for anyone responsible for a fleet of vehicles. The company has proven that consistent driver feedback is the answer to lowering operating costs and improving safety," said Doug Carlisle, a managing director of Menlo Ventures. "It is an inexpensive way to dramatically reduce accidents, providing both a societal benefit and a return on investment. This funding will give DriveCam the capital to expand worldwide."
Peter Arrowsmith, general partner of JMI Equity, stated: "We are excited to invest in a proven market leader that we believe is poised to be the dominant solution in a very large market. DriveCam is not just a device, but a complete enterprise solution for improving driver behavior and reducing risk. The DriveCam system cuts insurance claims and liabilities in half or more for most fleets."
The DriveCam system is used by thousands of commercial vehicles, including those in public transit, service fleets, school buses, parking shuttles, ambulances, utility fleets and taxis. Customers include ATC, Laidlaw, Time Warner, Ampco System Parking, Staples, and others.
"DriveCam is the knowledge and results leader in the field, having led the innovation of the audio/video feedback approach to identify and change driving behavior. Only DriveCam focuses on the actual root cause of incident and accidents -- the driver who is in control of the vehicle," said Bruce Moeller, DriveCam president and CEO. "This financing will give us the ability to introduce new services that make it easier for customers to implement our solutions and quickly reap the benefits."
Carlisle and Arrowsmith will sit on DriveCam's board of directors. A portion of DriveCam's original financing was provided by the Tech Coast Angels and Chopra Ventures. DriveCam was advised by Wilson Sonsini Goodrich & Rosati and Core Capital Group in completing this transaction.
About DriveCam, Inc.
DriveCam, Inc. is the leading provider of knowledge-based systems that identify and improve unsafe driving behavior for commercial fleets. Based in San Diego, the company's Driving Feedback System has reduced annual collision rates and corresponding operating costs by as much as 70%. When collisions occur, DriveCam recordings provide unbiased evidence to determine fault and expose fraudulent insurance claims. Additional information is available at www.drivecam.com.
About Menlo Ventures
Menlo Ventures provides long-term capital and management support to early-stage and emerging-growth companies. One of Silicon Valley's oldest venture capital partnerships, Menlo Ventures has organized and managed nine venture funds since its inception in 1976. With over $2.7 billion under management, and a team with over one hundred years of collective experience in technology, marketing, sales and general management, the firm has the resources to support the most ambitious of projects.
About JMI Equity
JMI Equity, based in Baltimore and San Diego, is a private equity firm exclusively focused on investments in the software and business services industries. Founded in 1992, JMI has invested in over 60 companies throughout North America and has approximately $700 million of capital under management. JMI invests in growing businesses. The firm's focus is on providing the first institutional capital to self-funded companies. JMI also invests in select recapitalization and management buyout financings. Representative investments include Unica Corporation, Blackbaud, Inc. , NEON Systems, Inc. , META Group, Inc. (acquired by Gartner, Inc. ), Jackson Hewitt, Inc. , Transaction Systems Architects, Inc. , Control Point Solutions, Inc., NetPro Computing, Inc., Network Intelligence Corporation and Panorama Software, Ltd. For more information on JMI Equity, visit www.jmiequity.com.
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