IPOs/Recent Issues: WEBMETHODS –

Fairfax, VA

Went public 2/11/2000 at $35 apiece

Filing Range: 4.1 mil. shares @ $11 to $13

Shares Outstanding: 30.12 mil. shares

Underwriters: Morgan Stanley Dean Witter

Merrill Lynch/Dain Rauscher Wessels/Friedman Billings Ramsey


(Data except per-share in $ thousands)


3/98 3/99 12/98 12/99

Total Revenue $166 $4,462 $2,208 $12,625

Net Loss -1,475 -3,902 -2,774 -20,231

Net Loss Per Share -.24 -.71 -.51 -3.37

The Company:

Webmethods is a leading provider of infrastructure software and services taht allow companies to achieve business-to-business integration. The company’s software, webMethods B2b, permits its customers to rapidly and effectively deploy new, real-time business-to-buisiness e-commerce applications over the Internet by integrating their existing enterprise applications with those of their customers, suppliers and other business partners. Customers can use the software to achieve varying levels of integration, from integration with a single business partner to full integration across an entire trading network.


WebMethods intends to use approximately $176,609 of the estimated $132.3 million in net proceeds to repay the outstanding balance under the company’s credit agreements. Proceeds will also be used for working capital and general corporate purposes, including expanding research and development, sales and marketing and customer service operations.

Venture Backers:

Mayfield Fund, FBR Technology Venture Partners LP, The Goldman Sachs Group Inc., Dell U.S.A. LP, Royal Wulff Ventures LLC, FedEx Corp.

Board Members:

Dennis Jones, FedEx Corp. November 1999

Michael Levinthal, Mayfield Fund September 1998

Gene Riechers, FBR Technology Venture Partners LP November 1997

Robin Vasan, Mayfield Fund September 1998