IPOs/Recent Issues – IMPROVENET –

Redwood City, Calif.

Went public 3/16/2000 at $16 apiece

Filing Range:2.3 mil. shares @ $14 to $16

Shares Outstanding:16.02 mil. shares

Underwriters:Credit Suisse First Boston

Robertson Stephens/E*Offering


(Data in $ millions)


12/98 12/99

Total Revenue $.26 $2.07

Net Loss -4.83 -36.49

The Company:

Improvenet provides home improvement information and services through its ImproveNet.com and ImproveNetPro.com Web sites. Homeowners are able to access free online information and design tools such as a design gallery and product showcase as well as a personal project folder that allows homeowners to store all their ideas and information about their projects. The company also provides a matching service between homeowners and service providers that have passed a screening process with pre-qualified job leads submitted by homeowners. Participating homeowners get free access, both online and offline, to one of the company’s home project advisors, who assists them though the entire process. Improvenet generates revenue from three constituents: services providers that pay lead fees and win fees for matching services; suppliers of home improvement products and services that purchase advertising space on the company’s sites; and homeowners that pay for premium home improvement services. In 1999, service revenues represented about 55% of total revenue and advertising revenues represented the remainder. The company has entered into multi-year commercial contracts with the following providers of home improvement products and services and related home services, Armstrong, Cendant, Dow Chemical, DuPont, General Electric Applicances, Microsoft, Owens Corning and Wickes.


Estimated net proceeds of $30.7 million have been earmarked to expand sales and marketing, to expand field support, for capital expenditures and for general corporate purposes.

Venture Backers:

Alta Partners, ARCH Venture Partners, August Capital, Microsoft Corp., Ownes Corning, Allied Insurance Co., GE Capital Equity Investment Inc.

Board Members:

Ronald Cooper

Andrew Anker

Domenico Cecere

Stuart Gannes

Brian Graff

Garrett Gruener

Alex Knight