Synacor Lands New Round Of Funding
Advantage Capital Partners Invests
February 11th 2004
BUFFALO, NY – February 11, 2004 – Synacor, the leading provider of technology supporting the delivery of bundled online services, today announced that it has closed a new round of financing from Advantage Capital Partners. Advantage, a certified capital company under the state’s CAPCO program, which increases venture capital available to small businesses, joins a strong investor syndicate including Access Technology Capital, LLC, Rand Capital (NASDAQ: RAND), Walden International Investment Group and Crystal Venture Capital.
“We are very excited to be involved with our first Buffalo-based company. We look forward to working closely with Synacor’s seasoned management team as the company rolls out new products,” said Scott Murphy of Advantage Capital in New York.
Synacor’s unique software platform, Portelus, enables all partnered online services to be bundled, delivered and billed directly to an ISP’s customer, seamlessly without the submission of additional personal or credit card information. The subscriptions are billed through each Internet user’s ISP. With the deployment of Portelus, ISPs can offer a wide variety of Internet subscription services in easily delivered bundles and receive attendant increases in revenue and margin per customer. Because of the bundling, consumers receive greater value and more services at a reasonable price.
The company will use the new funding to continue the strategic expansion of its customer base to larger MSOs and telephone companies looking to leverage the growing market for paid premium content and services. Susquehanna Communications has recently begun offering premium content subscriptions provided by Synacor to its customers. The company expects to double its employee roster over the next two years.
“ISPs are evolving their business model to deliver customers the rich content and value added services they desire in addition to broadband access,” said Ron Frankel, president and CEO of Synacor. “Advantage Capital’s support is a clear indication of their belief in our strategy and will support Synacor as we build on our relationships and our success.”
About Synacor
Synacor offers customizable content, security and privacy services delivered in a unified platform, called Portelus that drives increased revenues and customer retention for high-speed ISPs. Synacor’s private-label system allows Internet service providers (ISPs), cable and DSL companies to offer their customers a branded complete, bundled solution that integrates more than 25 leading online services. Portelus’ ease of implementation and back end billing solutions provide an elegant turnkey solution that can be immediately integrated into any portal. For information visit www.synacor.com.
Advantage Capital Partners
http://www.advantagecap.com
The Advantage Capital funds make equity and debt investments in emerging, well-managed companies with superior growth potential. The firm has helped provide funding to scores of small businesses in Florida, New York, Louisiana, Missouri, Wisconsin and Colorado. Founded in 1992, the firm manages more than $550 million in institutional venture capital partnerships and has been a leader in providing expansion capital for middle market companies. Advantage Capital’s New York office manages a $65 million CAPCO fund dedicated solely to small companies based in New York State.
Media Contact
Bob Gold & Associates for Synacor
Lisa A. Ruiz
310.320.2010
lisa@bobgoldpr.com
