USA: Allrecipes.com capitalizes on growth, popularity with $6.5 million in funding
This funding round includes participation by the venture capital firms Nevis Capital Management and Sugar Mountain Capital as well as individual investors including Frederick J. Warren, co-founder of Brentwood Associates; Larry Murphy, former executive vice president and chief strategic officer for the Walt Disney Company; and Michael Brochu, president and CEO of Primus Knowledge Solutions. This financing allows the company to continue the momentum, grow their technology, expand upon key partnership and sponsorship initiatives, and increase staff size.
Since securing their first round of funding for $2.5 million in December 1999, Allrecipes.com has experienced tremendous growth. This summer Allrecipes.com consistently surpassed monthly uniques for well-known sites, such as marthastewart.com, epicurious.com and tavolo.com.(1) This popularity is due primarily to Allrecipe.com's community-based element that is driven by the thousands of users who submit recipes for posting on the site. Additionally, the company has remained focused to these dedicated users and is delivering on their promise to provide the time and money-saving online resources America's cooks have specifically requested.
"I have continually been impressed with the management and advisory teams at Allrecipes.com. They are an ambitious company going after a huge market. Allrecipes.com's ability to make an impact by listening to consumers and providing innovative content made the decision to invest an easy one," said Jon C. Baker, founder and portfolio manager at Nevis. "Allrecipes.com has the potential to remain a leader and industry innovator in this $430 billion food industry."
Baltimore-based Nevis Capital Management Group invests in emerging companies that will experience strong growth in operation earnings. Prior Seattle-based investments include Sierra Online, Primus Knowledge Solutions and OnHealth Network Company. All second round investors, including Nevis, agree that Allrecipes.com's community-based approach is of high value and the result is a company that fosters solid revenue streams that will sustain superior earnings growth over the long term. They believe the company's future as the premier online meal planning resource for everyday cooks to be secure.
With online audience numbers in the millions, Allrecipes.com is in a prime position to expand its meal planning resources to anyone who cooks or shops. Technology enhancements, high profile partnerships, and business developments in the areas of coupons, packaged goods, online and offline grocery shopping, and expanded wireless access and capabilities are all part of Allrecipes.com's strategic future. Additionally, Allrecipes.com plans to grow its staff from its current level of 50 to more than 65 before January 2001.
"We have found tremendous support from the investment community because they understand our business model and recognize that we are uniquely positioned to capture an enormous market," said Bill Moore, CEO of Allrecipes.com. "We have huge traction within the user community; we're attracting key business partners and, at the same time, maintaining a low cost structure that is generating high margins. Most importantly, we are doing this all within the context of revolutionizing the meal planning process for everyday people."
Allrecipes.com® (www.allrecipes.com) is the leading community-based Web site offering unique food ideas and resources, including recipes, menu ideas, meal preparation tips, nutrition shopping list and recipe scaling tools, culinary ware and news. Founded in 1997, Allrecipes.com makes cooking, learning and shopping easy and fun for the novice to the experienced cook. Allrecipes.com offers tens of thousands of user-submitted and third-party recipes; a free, bi-weekly e-mail newsletter, RecipeNotes; and a culinary store featuring kitchenware hand-selected with the recipes in mind. Based in Seattle, Wash., Allrecipes.com has been featured in countless high profile television and print features, and has received numerous accolades and awards, including Yahoo! Pick of the Year.
Allrecipes.com is a registered trademark and Culinarystore.com, Cookierecipe.com and RecipeNotes are trademarks of Allrecipes.com, Inc. All other names are trademarks and/or registered trademarks of their respective owners.
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