NEWS

LogoWorks Receives $9.3 Million in Equity Funding; Benchmark Capital and Shasta Ventures Lead Investment; Bob Kagle and Tod Francis Join Board of Directors

BusinessWire
June 20, 2005

LogoWorks, the leader in custom graphic design services for small businesses, today announced it has received a $9.3 million round of equity funding in a round co-led by Benchmark Capital and Shasta Ventures.

LogoWorks also announced that Bob Kagle, general partner of Benchmark Capital, and Tod Francis, managing director of Shasta Ventures, have joined its board of directors. Kagle is best known as the lead venture investor in eBay. Kagle's other investments include AllPosters.com, Art.com, eBags, Friendster, Jamba Juice and zipRealty. Francis has also invested in several consumer-oriented investments, including BabyCenter, Blue Nile, FatBrain, Next Card and WeddingChannel.com.

"We are fortunate to have venture firms of this caliber helping us build the company," said Morgan Lynch, founder and CEO of LogoWorks. "We will use the funding and expertise of our investors to grow aggressively, and to take our innovative service to the millions of small businesses that need it. The word is getting out that small businesses can now get the kind of high quality graphic design that previously only big businesses could afford. The playing field has now been leveled."

LogoWorks has grown quickly since its inception in 2001 and was profitable prior to the financing. The new growth initiatives will further advance their position as the "go-to" graphic design provider for small businesses.

"LogoWorks uses the power of a distributed community of graphics designers to deliver a superior design service at an astounding price point," said Kagle. "Their value proposition is compelling and will make quality design truly affordable. They are pioneers in the emerging field of Internet-delivered professional services."

"LogoWorks is the leader in offering design services to small businesses via the Internet," said Francis. "The company has developed a unique process to harness the power of the Internet to offer high quality design services to a market that has been traditionally underserved. This round of capital will help LogoWorks build on its leadership position and offer new design services."

LogoWorks is the largest and fastest-growing provider of logo design services in the world. The company pioneered a model of design that leverages a team of professional graphic designers on each logo project in order to create more variety and choice for the customer. LogoWorks uses the same model to provide business cards, stationery, websites, brochures and all other types of graphic design at a fraction of the cost of a traditional ad agency.

About LogoWorks

LogoWorks is the world's largest and fastest-growing provider of logo design services to small businesses. The company solves a simple problem -- small businesses don't have good options for getting a well-designed logo or other graphic design services at an affordable price. The company pioneered a new, disruptive model of design that leverages a team of designers on each project in order to create more variety and choice for the customer. To date, LogoWorks has empowered thousands of businesses with the same quality of design that used to be available only to larger businesses, at prices just a fraction of the cost: $265-$549. LogoWorks is located in Lindon. For more information about LogoWorks, please visit www.LogoWorks.com.