Business Editors & High-Tech Writers
FOSTER CITY, Calif.--(BUSINESS WIRE)--July 18, 2000
Crystal Internet Ventures Leads Investment Round, Followed by
CMGI@Ventures, Sienna Holdings, and Angel Investors LP
KnowledgeFirst (www.knowledgefirst.com), the Internet's premier marketplace for financing higher education, today announced that it has secured an additional $12 million in Series B financing from several venture capital investors. The round was led by Crystal Internet Ventures and includes follow-on investments by all the major Series A investors including CMGI@Ventures, Sienna Holdings, and Angel Investors LP.
This announcement follows the company's re-launch of a completely redesigned and transaction-enabled Web site, providing a much more efficient mechanism for the delivery of financial aid. By offering an open platform to industry participants, KnowledgeFirst enables financial service partners to more effectively reach target customers while reducing processing costs. The company plans to apply the new funds to ramp up product development efforts, accelerate school and lender acquisition and build strong brand awareness among key customer segments.
"This financing round is an important milestone in the development of our company and reflects favorably on our progress to date. We are very pleased that experienced investors continue to express confidence in the strength of our business model and in our ability to execute on our growth plans," stated Lindsay Lee, KnowledgeFirst's CEO and co-founder. "We now have the resources in place to continue our mission of streamlining the financial aid process for all customers including schools, lenders, guarantors, students and parents."
As the cost of a college education continues to rise, more students and families are depending on financial aid to bridge the gap. In fact, almost 40% of college undergraduates currently rely on some form of financial aid to support their educational goals. However, the amount of scholarship and grant money available to students has not kept pace with the increase in costs. As a result, student loans now account for about 60% of all aid, as compared to 40% in 1980. KnowledgeFirst recognizes the importance of financing to the pursuit of higher education, providing resources and tools that empower students and parents to make more informed financial aid decisions and to execute those decisions more conveniently than ever before.
