IPOs/Recent Issues – FAIRMARKET –

Woburn, Mass.

Went public 3/14/2000 at $17 apiece

Filing Range:5 mil. shares @ $13 to $15

Shares Outstanding:26.56 mil. shares

Underwriters:Deutsche Banc Alex. Brown

Robertson Stephens/Prudential Volpe Technology


(Data in $ millions)


12/98 12/99

Total Revenue $.004 $2.12

Net Loss -1.39 -16.51

The Company:

Founded in February 1997, FairMarket provides outsourced, networked online auction services for companies that desire to develop or enhance their Internet marketplaces. The company’s primary service offering consists of the development, hosting and maintenance of private-label online auction sites for business merchants, Internet portal sites and other companies that have a presence on the Web. Fairmarket host these auction sites on its central operating system, which gives it the ability to aggregate listings of goods and services available for sale on each of its customers’ auction sites and makes those listings available for display and sale on auction sites of other FairMarket customers, the FairMarket Network. Revenue is primarily derived from service fees and network fees. Service fees include one-time auction site set-up fees and monthly fees for hosting and maintaining customers’ auction sites and providing customer support services. Network fees include success fees charged to sellers upon a completed sale, listing fees and merchandising fees, which are fees charged for the prominent display of a particular seller or listing. Over 90 businesses and several top Internet portal sites are members of the FairMarket Network, including Excite.com, MSN.com, Alloy Online and CompUSA.


Net proceeds of $45.2 million will be used for working capital, hiring personnel, capital expenditures, sales and marketing activities and development of technology.

Venture Backers:

Excite Inc., Microsoft Corp., Sierra Ventures, TicketMaster Online-CitySearch Inc.

Board Members:

Scott Randall

Jeffrey Drazan

Nanda Krish

Richard Pallan