IPOs/Recent Issues: XCARE.NET –

Englewood, CO

Went public 2/10/2000 at $18 apiece

Filing Range: 5 mil. shares @ $11 to $13

Shares Outstanding: 15.37 mil. shares

Underwriters: Robertson Stephens

SG Cowen/E*Offering/Advest


(Data except per-share in $ thousands)


12/97 12/98 9/98 9/99

Total Revenue $5,984 $2,270 $1,564 $2,654

Net Loss -7,324 -4,082 -2,957 -2,176

Net Loss Per Share -1 0 -.32

The Company:

XCare.net is an electronic commerce service provider for health care businesses that has developed an Internet-based technology platform that processes health care transactions such as eligibility checking, claims submission, referral processing, physician credentialling, and appointment scheduling. Xcare also provides consulting services to develop and implement Internet health care strategies as well as Web-site hosting, transaction support and maintenance services for customers such as American Medical Pathways Inc., Employers Mutual Inc., Brokerage Services Inc., ADIS International Ltd., Nursefinders Inc., and Digital Medical Registrar. They also design and develop custom health care portals, linking health care providers, payers and other industry participants. Xcare.net started developing Internet-based technologies in early 1998 and first made them available to customers in 1999. Xcare.net incurred losses of $11.4 million in 1997 and 1998, and $2.2 million for the nine months ended September 30, 1999. For the nine months ended September 30, 1999, sales to four customers accounted for 82% of revenues.


Net proceeds expected to be approximately $54.3 million will be used for research and development ($3 million), sales and marketing ($7 million), hardware and software purchases and other capital expenditures ($2 million), and general and administrative expenses ($6 million), as well as general corporate purposes.

Venture Backers:

Nazem & Co., Atlantic Medical Capital LP, Sequel Venture Partners, Vertex Management Inc., CB Health Ventures LLC, Dauphin Management LLC

Board Members:

J. Andrew Cowherd, Altantic Medical Capital LP March 1997

James Hoover, Dauphin Management LLC June 1999

Daniel Mitchell, Sequel Venture Partners August 1999

Robert Tsao, Vertex Management Inc. June 1999

Jeffrey Krauss, Nazem & Co. March 1997