Raises $12 Million To Fuel Homebuilding Industry's First e-Chain"
Woodside Fund, McCown De Leeuw & Co.,
Hanley-Wood, Pulte and Village Homes Finance a New Internet Supply
Chain for Production Homebuilding.
July 5, 2000
USBuild.com, a company leveraging the Internet
to create a supply chain optimized for production homebuilding, today
announced the successful completion of a $12.4 million round of financing.
Led by Woodside Fund and McCown De Leeuw & Co, the round includes
key strategic investors Hanley-Wood, Pulte Home Corporation and Village
"This latest investment in USBuild.com will
be used to launch the company's business-to-business offering in partnership
with Pulte and Village Homes in Denver," said USBuild.com CEO, George
Mac Connell. "It also allows us to prepare to serve the many manufacturers
and builders nationwide who want to be part of our unique e-commerce
solution for the homebuilding industry."
"We're delighted to be investing in USBuild.com,
because it has a vision of making production homebuilding more profitable
for builders, trade contractors, and manufacturers, and ultimately,
more affordable for homebuyers," said Woodside Fund principal John
Occhipinti. "USBuild.com has differentiated itself with a practical
focus on Internet-enabled supply chain management." Mr. Occhipinti
will be joining USBuild.com's board of directors.
"USBuild is pioneering a new Internet business
model -- the e-chain -- engineered to meet the unique needs of a specific
segment of the industry," said company co-founder and chairman, Bill
Bernardy. "Unlike market exchanges that connect buyers and suppliers
who continue to use inefficient supply chains, our e-chain actually
takes out unnecessary costs by using methods proven in other industries."
Co-founder Jim Kimzey, EVP-business development,
added, "By unbundling labor and materials, dealing directly with manufacturers,
and using just-in-time logistics to ensure reliable delivery to home
sites, USBuild.com moves products, as well as information, very efficiently."
"We've closely tracked USBuild's progress
for the last eight months, and are impressed with the company's commitment
to build a sustainable, long-term business and with its ability to
hit aggressive milestones," said Phil Collins, a managing director
at McCown De Leeuw & Co. "As longtime investors in bricks and
mortar building product distribution businesses, we like the e-chain
model the company has developed. It creates new value for participants
by lowering the cost of doing business." Mr. Collins will also be
joining the board of directors.
"It is clear to me that production homebuilders
have different needs than custom builders. USBuild is the first company
to tailor a solution for this important segment in a way that will
be a real catalyst for change in the industry," added Michael Wood,
CEO of Hanley-Wood. Mr. Wood will also join the board of USBuild.com.
About Woodside Fund
Founded in 1983, Woodside Fund (http://www.woodsidefund.com/) has one
of the longest and strongest track records of success in early stage
venture capital investing. All Woodside Funds have performed in the
upper quartile of the industry for venture capital partnerships formed
in their respective years. Woodside Fund IV , which closed in March,
invests in early stage ventures in Internet and electronic commerce,
computer software, telecommunications, and networking. The Fund serves
as an active lead or co-lead investor in most of its portfolio companies.
About McCown De Leeuw & Co.
McCown De Leeuw & Co., Inc., (http://www.mdcpartners.com/) is a private
investment firm based in Menlo Park, CA and New York City. MDC's mission
is to partner with management teams to "Build Companies That Make
a Difference." The firm focuses on acquiring platform companies in
industries undergoing structural change that have excellent prospects
for internal growth and/or expansion through strategic acquisitions.
MDC also selectively invests in early stage and e-commerce companies
in areas where it has strategic bricks and mortar investments or industry
expertise. MDC currently manages four funds totaling $1.2 billion
of contributed and committed capital.
Hanley-Wood (http://www.hanley-wood.com/) of Washington,
D.C., publishes leading magazines in the residential and commercial
construction industries, including Builder, Big Builder, Remodeling,
ProSales, and Building Products, and is the leading publisher of house
plan magazines. The company also produces trade shows, including World
of Concrete and Custom Home, as well as the Builder 100 and iHousing
conferences. Hanley-Wood has a major Internet presence through Builder
Online, Remodeling Online, and its new company, ebuild. Hanley-Wood
is owned by VS&A Communications Partners III, the New York private
equity affiliate of media industry merchant bank Veronis, Suhler &
About Pulte Home Corporation
Pulte Corporation ((NYSE: PHM) http://www.pulte.com/) is the parent of the Pulte
group of companies, which includes Pulte Home Corporation. The company
has operations in 42 markets across the United States and Puerto Rico,
and is the fifth largest builder in Mexico. Over its history, Pulte
has constructed more than 250,000 homes and has been honored as "America's
Best Builder." Pulte Mortgage Corporation is a nationwide lender committed
to meeting the financing needs of Pulte customers by offering a wide
variety of loan products and superior customer service.
About Village Homes
Village Homes of Colorado, Inc. (http://www.villagehomes.com/) is Colorado's
largest privately held homebuilding company, delivering over 700 homes
in 1999. The Company was founded in 1984 and has built over 4,500
homes in the Denver metropolitan area. Village Homes has been recognized
both locally and nationally for its innovative community designs.
Village offers a wide range of housing, styles, all featuring the
latest in-home technologies, including high-speed wiring and the new
IBM Home Director.
USBuild.com Corporation (http://www.usbuild.com/) is the leading company
pioneering the Internet e-chain model, a new kind of Internet business
that creates value by acting as a catalyst for change in the supply
chain. Its systems shorten the supply chain and drive out costly inefficiencies
by applying methods proven in manufacturing. It is also the first
e-commerce company to focus on production homebuilding. Using USBuild.com,
builders lower the cost of direct materials (those used in construction)
by ordering directly from manufacturers and having USBuild.com deliver
products just as the job site and the trade contractor are ready for
The company is currently developing and testing
its Internet scheduling and procurement management systems, and is
establishing advanced fulfillment centers to provide just-in-time
delivery to new-home job sites. It has partnered with Pulte Home Corporation
and Village Homes to develop and pilot its systems in Denver beginning
in late Summer, 2000. The privately-held company began operations
in 1999 and is headquartered in San Francisco.
Susan DeVico, 415/434-8220