Revolution Growth Fund Makes First Investment in FedBid
Ted Leonsis Named Chairman of the Board; Gen. George Casey and Mark Walsh Joining Board
January 17, 2012—Washington, DC —Today, FedBid, Inc., which operates the FedBid online marketplace at www.FedBid.com, announced that it has received the first investment made by the Revolution Growth fund, which was launched in December 2011 by Steve Case, Ted Leonsis and Donn Davis. Revolution Growth is now the largest investor in FedBid.
Leonsis has been named Chairman of the Board of FedBid, effective today, working closely with FedBid CEO, Ali Saadat, to accelerate FedBid’s growth and reach. FedBid and Revolution Growth also announced that General George Casey, the former Chief of Staff of the U.S. Army, and Mark Walsh, the former CEO of VerticalNet, are joining FedBid’s Board, which includes Kim Cooke, Founder and Managing Director of Blue Water Capital.
FedBid is recognized as a leader in revolutionizing federal government procurement by creating a fully managed online marketplace in which qualified companies compete to sell goods and services – saving buyers hundreds of millions of dollars annually, improving purchasing efficiency and transparency, and increasing awards to small and disadvantaged businesses. FedBid offers a proven procurement tool that enables commercial and government buyers to quickly and easily buy across the broad range of goods and simple services needed to support ongoing business and agency operations.
“We launched the Revolution Growth fund with the intent on focusing on companies on the East Coast, and we’re proud to make FedBid, a company located right here in Washington, D.C., our first investment,” said the Fund’s co-founder, Ted Leonsis. "We believe that the combination of our experience in leveraging consumer-facing technology platforms with FedBid’s expertise in government and business e-commerce will accelerate FedBid’s growth and increase its impact across multiple sectors," Leonsis added.
The new capital from Revolution Growth will be used to further FedBid’s expansion within the federal government and other markets, including state and local government, and commercial markets, where the company’s reverse auction marketplace can drive cost-effective, efficient and transparent buying.
In fiscal year 2011, FedBid saved the federal government $150 million through the sale of $1.4 billion goods and services. U.S. small businesses were awarded 80% of the dollars competed through FedBid, and a significant subset of those companies were minority-, veteran- and women-owned businesses and disadvantaged businesses. During a time when the federal government and politicians are focused on creating U.S. jobs through the national economic engine of small businesses, FedBid is showing how it can be done effectively and responsibly.
“We’re thrilled to partner with the Revolution Growth team as we develop new and innovative ways to create new efficiencies in the government and corporate purchasing and save taxpayers and businesses time and money,” said Ali Saadat, CEO of FedBid. “This significant new investment will enable us not only to strengthen and increase our presence in the federal market, but also to impact other markets where dynamic, transparent competition can significantly reduce spending inefficiencies.”
The Revolution Growth fund, a $450 million fund, was launched in December 2011 with a focus on backing high-growth companies that are leveraging Internet technologies to transform existing industries.
DLA Piper served as legal counsel to FedBid, Inc. and Revolution Growth was represented by Kirkland & Ellis.
About: FedBid, Inc.
FedBid, Inc. operates the fully managed FedBid® online marketplace, revolutionizing how the government and businesses buy. By creating a new world of ‘FedBid-able’ buying, where the principles of opportunity, transparency and competition prevail, FedBid empowers and energizes its customers, giving them the confidence to take control of the buying process and freeing them up to focus on moving their organization forward. For more information, visit FedBid online at www.FedBid.com or call (877) 9FEDBID.
FedBid — Better Buying | Smarter Selling®
About Revolution Growth
Led by Steve Case, Ted Leonsis and Donn Davis, Revolution Growth invests in companies that can change the world. Its mission is to build disruptive, innovative businesses that offer consumers more choice, convenience, and control in their lives. By taking a long-term approach and developing a true, hands-on partnership with entrepreneurs and management teams, Revolution Growth brings a unique strategy and passion to investing in and building significant companies. For more information, visit www.revolution.com/growth.
Released: JANUARY 17, 2012