September 25, 2007

DocuSign Raises $12.4 Million to Fuel Rapid Growth

 

WestRiver Capital Joins Strong Investment Team Backing DocuSign’s Leadership and Rapid Growth in the eSignature Market

SEATTLE, WA (September 25, 2007) –DocuSign, the leading Web-based eSignature service, today announced that the company has raised $12.4 million in funding led by new investor WestRiver Capital, LLC. Also participating in the round were the company’s existing investors Frazier Technology Ventures, Ignition Partners and Sigma Partners.

DocuSign is growing rapidly. The company’s volume of signature events has more than tripled in the first nine months of 2007 as compared to 2006’s total number. This 300 percent increase in volume is being driven by a significant increase in the company’s base of new customers and wider use of DocuSign by existing customers thus far this year. The funding will enable DocuSign to continue to fuel this strong growth through investments in sales, marketing, new products, and the company’s channel and partner network.

Leading companies from a broad range of industries -- including Expedia, Land America, RE/MAX, Amica, Worldspan, Quadrant Homes/Weyerhaeuser, Yamaha, Tektronix and Fidelity National Title -- are able to increase revenue, close deals in record time and eliminate costly paper processes. DocuSign customers experience increases in sales close and customer acquisition rates of between 200 percent and 300 percent, while eliminating hundreds of thousands or millions of dollars in expenses. DocuSign and its customers also have a positive impact on the environment because the paper-signing process is eliminated.

“Electronic signatures are quickly becoming a business technology that fundamentally changes the game for companies; a service that smart businesses use to compete globally. In the near future, e-signing legally binding documents over the Internet will be as ubiquitous as the Web and email are today,” said Erik Anderson, President of WestRiver Capital, LLC. “DocuSign is growing very quickly and is the leader in the on-demand e-signing marketplace.  We remember the immediate impact that the Web, and even earlier, a company like Federal Express had on how global business was conducted. DocuSign is leading a similar business transformation.”

Jonathan Roberts of Ignition Partners, a board member since 2004, said DocuSign is growing rapidly because of the impact the company is having on its customers. “DocuSign has perfected a Web-based, on-demand eSignature service that is truly enterprise-class,” said Roberts. “They’re revolutionizing costly and time-consuming paper-based business processes such as getting important business contracts and agreements signed. DocuSign’s eSignature process is faster, less expensive, and more secure than pen and paper. We expect continued rapid growth as DocuSign responds to the demand they are generating.”

“We’re excited to have such a highly respected team of investors including Frazier Technology Ventures, Ignition Partners, Sigma Partners and WestRiver Capital. It’s very encouraging to see the demand for our eSignature service take off, but it is even more rewarding to see the positive impact we are having on our customers’ profitability,” said Matthew J. Schiltz, CEO and President of DocuSign. “Any document you can print, you can DocuSign, and with our service all the sender and signer need is access to the Internet to complete their transaction in record time. We are growing rapidly because our best-in-class service has such a remarkable ROI for our customers. We have the lead in the Web-based eSignatures market. With this financing we are going to continue to expand that lead.”

This funding round follows Series B investment of $10 million in April 2006 from Frazier Technology Ventures, Ignition Partners and Sigma Partners.

About DocuSign
DocuSign offers a Web-based electronic signature service that provides the simplicity, speed and security required to deliver, sign and store documents. Designed from the ground up for enterprise-class usage, this service integrates the technical infrastructure and legal compliance needed to operate an end-to-end electronic signing service that replaces the old pen and paper process. DocuSign customers span a variety of industries and range from the largest corporations to the smallest branch offices. These customers trust DocuSign to help them achieve increased revenue and sales close rates, decreased costs, and acceleration in business velocity. DocuSign also offers a direct positive impact on our global environment by reducing paper consumption and transportation emissions. For more information please visit www.docusign.com. DocuSign and the DocuSign logo are registered trademarks of DocuSign, Inc.

About Frazier Technology Ventures
Frazier Technology Ventures (FTV) is a Seattle-based, early-stage venture capital firm focused on investments in wireless, Internet services, and software and technology infrastructure companies. The partnership helps entrepreneurs build category defining companies by leveraging their executive operating and entrepreneurial backgrounds from more than a dozen companies including Apple, C-Cube, EdMark, Intel, LSI Logic, Metapath, Microsoft, RealNetworks and Visio. For more information, please visit www.fraziertechnology.com.

About Ignition Partners
Ignition Partners, headquartered in Bellevue, Wash., is a premier venture capital firm dedicated to helping the best entrepreneurs seize opportunity—from turning their early-stage idea into a business, to hiring the right team, providing the right industry and functional insight and connections, and growing their business strategically, globally and financially to realize the best ultimate outcome. Ignition invests in emerging and future leaders in communications, Internet, software and services across business and consumer targets. Ignition brings together an unparalleled combination of domain focus, technical expertise and global operational experience. Ignition's partners are proven business leaders who have built some of the world's most successful businesses of the last two decades, including Microsoft Windows and Office, McCaw Cellular Communications, AT&T Wireless and Starbucks. For more information, please visit www.ignitionpartners.com.

About Sigma Partners
Founded in 1984, Sigma Partners is a leading early-stage venture capital firm. The Sigma team uses their deep operational experience to provide entrepreneurs with practical strategic counsel through every phase of company growth. With over $1.5 billion under management and bicoastal offices, Sigma invests in innovative technology startups across the United States. Some of the market-leading companies in which Sigma has invested include Atria, Cascade, Clarify, Internet Security Systems, KLA-Tencor, Octel, VeriFone, Vermeer and Vignette. For more information, please visit www.sigmapartners.com.

About WestRiver Capital, LLC
WestRiver Capital, LLC. is an opportunistic investment fund focused primarily on private market transactions.