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Revolution Growth Fund makes first investment in FedBid

FedBid, Inc, which operates the FedBid online marketplace at www.FedBid.com, has secured 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 US Army, and Mark Walsh, co-founder and CEO of GeniusRocket and former CEO of VerticalNet, are joining FedBid’s Board, which includes Kim Cooke, Founder and Managing Director of Blue Water Capital.

FedBid is recognised as a leader in revolutionising 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, DC, our first investment," says 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.”

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 USD150 million through the sale of USD1.4 billion goods and services. US 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 US 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," says 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 USD450 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.

 

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