PeopleFirst.com Closes $22.5 Million in Venture Capital; Equity Infusion to Support Anticipated Dramatic Growth in Business
31 July 1999
PeopleFirst.com Closes $22.5 Million in Venture Capital; Equity Infusion to Support Anticipated Dramatic Growth in Business
SAN DIEGO----Online auto loan leader PeopleFirst.com announced on Friday the completion of a $22.5 million round of funding from investment firms J.P. Morgan Capital Corp., Moore Capital, Chrysalis Ventures and Irv Bailey Capital Corporation. The funds will go toward supporting the anticipated dramatic growth in the business, presently geared toward providing fast, convenient, and innovative auto loans to excellent credit quality customers."The customer reaction to our product has been unbelievable," said Gary J. Miller, CEO and co-founder of PeopleFirst.com. "We have reengineered the vehicle lending process and utilized the technology of the Internet so that a customer can quickly and conveniently complete the entire loan process online, get a credit decision in minutes, and have a blank check to go shopping for his or her vehicle the next day. In effect, our blank check turns the customer into a cash buyer and makes purchasing a vehicle very convenient."
"Getting an auto loan in this country through traditional means is not a pleasant experience," said David G. Zeller, President and co-founder of PeopleFirst.com. "The Internet is a far superior and more efficient delivery system allowing us to offer rates one to one and half points below the national average and, more importantly, to vastly improve the customer experience. Our market is a $100 billion market annually and we anticipate over half of it moving online in a few short years. We intend to be the leader in this new arena."
J.P. Morgan Capital Corp. and Moore Capital were the two largest investors in the funding. "Growth in the Internet auto lending market is accelerating rapidly, and PeopleFirst.com is a leading company with the technology, product innovation and customer service in place to take advantage of it," said Carty Chock of J.P. Morgan.
About PeopleFirst.com
PeopleFirst.com is a privately held company located in San Diego, California. Founded in 1995, the company spent over 18 months internally building its customized Internet lending delivery systems and has been offering auto loans via the Internet since August 1997. The company was named one of the five "Best of the Web" financial innovators in 1998 by Online Banking Report citing PeopleFirst.com as the "pioneer of blank check auto lending." The company presently offers auto loans in 38 states plus the District of Columbia with plans to expand to all 50 states as soon as possible.
About J.P. Morgan Capital Corp.
J.P. Morgan & Co. Incorporated is a leading global financial firm that meets critical financial needs for business enterprises, governments, and individuals. The firm advises on corporate strategy and structure, raises capital, makes markets in financial instruments, and manages investment assets. Morgan also commits its own capital to promising enterprises and invests and trades to capture market opportunities. J.P. Morgan Capital Corp. is the firm's private equity investment subsidiary.
About Moore Capital Management, Inc.
Moore Capital Management, Inc. is an investment management group with several billion dollars under management. Its private equity activities have included investments in eToys, GoTo.com, iVillage, Nextcard, RoweCom and Tickets.com.