SAN FRANCISCO – NextCard Inc., a company that markets an online credit card, held an initial public offering May 14. The company offered 6 million shares of common stock at $20 apiece, above the $17 to $19 filing range.
Brentwood Venture Capital, Moore Capital Management, Kleiner Perkins Caufield & Byers, Forest Binkley & Brown, Trinity Ventures, St. Paul Venture Capital and Sequoia Capital were venture investors. There were no selling shareholders.
Underwriters included Donaldson, Lufkin & Jenrette, Thomas Weisel Partners L.L.C., U.S. Bancorp Piper Jaffray and DLJdirect Inc.
Next Card Inc., founded in June 1996, provides customer credit application and approval over the Internet. The company also offers an online shopping service, protection against fraud and an Internet-based reward program. Customers can obtain statements online and download account activity.
Proceeds, worth an estimated $120 million, will be used for general corporate purposes. The company has never declared or paid cash dividends.
Jeffrey Brody, general partner at Brentwood, joined the company’s board of directors in August 1997, followed by Tod Francis, general partner of Trinity Ventures, in May 1998. Alan Colner, managing director at Moore, became a director in November 1998.
NextCard – Selected Financial
(in thousands, except per share data )
June 5, 1996 (Inception) Year Ended Three Months Ended March 31 unaudited,
to December 31, 1997 December 31, 1998 1998 1999
Interest income 93 502 33 660
Net loss -1,886 -16,064 -1,375 -10,982
Net loss per share -1.08 -5.07 -0.48 -2.84