BAIRD VENTURE PARTNERS LEADS $14 MILLION INVESTMENT IN ARROWEYE SOLUTIONS, INC.









Leading Provider Of Web-Based Personalization For Gift Cards And Greeting Cards

 
 



CHICAGO, May 21, 2007 – Chicago-based Arroweye Solutions, Inc. (Arroweye) has completed a $14 million financing round led by Baird Venture Partners, (BVP), the U.S.-based venture capital fund of Baird Private Equity, with co-investor Adams Street Partners. Arroweye is the leading provider of customized gift card and greeting card solutions for multi-channel retailers, and its clients include Harry & David, Circuit City, Lowe’s™, Toys “R” Us, and other leading retailers.


Arroweye will use the funds to expand its sales and marketing efforts, and Devin Mathews, Partner, BVP, and Jeff Diehl, Partner, Adams Street Partners will join Arroweye’s board. Other terms of the transaction were not disclosed.


Arroweye’s pioneering print-on-demand technology enables the mass customization of greeting cards and gift cards, which can be purchased online from retailer websites. A consumer can purchase a retailer branded gift card online, choose any denomination and customize it with personal photos and messages.  Then the customer can choose from a selection of greetings, personalize the greeting cards in the same manner, and the customized gift card and greeting card will be delivered together in one convenient package. Arroweye’s fulfillment capabilities allow retailers to provide this service on their websites with minimal cost and for which they receive a revenue share on each card sold.


Mathews said, ”Arroweye is at the intersection of a few exciting trends: the explosive growth in the $100 billion gift card industry, the continuing expansion of e-commerce and the power of the Internet to provide consumers with more personal relationships with brands and retailers.  This investment in Arroweye is another example of BVP’s focus on technology-enabled services and we are proud to support such a great company in our own backyard.”


“Arroweye is led by a talented management team that has built an impressive business and attracted the attention of some of the largest retailers in the world,” said Diehl.  “We look forward to working with the team and helping the Arroweye team continue its impressive growth.”


In 2005, Arroweye moved its corporate headquarters to Chicago from California in order to be closer to its retail customers and to access critical Chicago-based expertise. “Chicago is a hub of the U.S. multi-channel retail industry. Many of the major catalog retailers’ headquarters and fulfillment centers are based in the Midwest,” said Arroweye CEO Doron Friedman. “The Midwest also provides unparalleled access to industry-specific marketing and technology talent, and is conveniently located, in terms of travel and time zones, between the coasts.”


Friedman said that Arroweye chose BVP to lead this round of financing based on BVP’s expertise in the payments industry and the group’s culture. “BVP’s industry knowledge and Midwestern values convinced me that they would be a genuine partner for the long haul,” said Friedman. In addition, teaming up with Chicago-based Adams Street Partners, a leading fund-of-funds investor provided Arroweye with another large, local partner that has a long track record of supporting technology companies.


###



About Arroweye Solutions


Founded in 1999, Arroweye Solutions is a technology enabled marketing services company focusing on gifting solutions for multi-channel retailers. The company offers a full suite of customized gifting solutions, ranging from quality greeting cards with gift purchases, branded greeting card communication programs to a robust suite of stored value gift card solutions, each tailored to their clients’ needs. Current clients include Harry & David, Circuit City, 1-800-Flowers.com, American Greetings, Travelocity, Babies“R”Us and Toys“R”Us, Napster, eBags, Overstock, Omaha Steaks, Papa John’s, Waterford and many more.  Consumers can experience Arroweye’s customization solutions at Cardways.com, an online gift card and greeting card destination offering online shoppers the opportunity to design their own gift card and greeting cards by uploading digital photos and adding text to an already popular gift. Arroweye Solutions is based in Chicago, IL. For more information, visit www.arroweyesolutions.com.


About Adams Street Partners


Adams Street Partners, LLC is a leading private equity investment firm, providing both partnership and direct investment services to institutional clients.  Adams Street Partners is one of the largest managers of private equity partnership investments in the world and has one of the longest histories.  Together with its predecessor organizations, Adams Street Partners has been investing in private equity partnerships since 1979 and managing direct investments in private equity since 1972.  Adams Street Partners has offices in Chicago, London, Menlo Park, CA, and Singapore.


Adams Street Partners’ Direct Investment Team invests in U.S.-based private venture and growth oriented companies in the technology, life sciences, and business services sectors that are seeking capital to develop and commercialize their products or services.  For more information, visit www.adamsstreetpartners.com.


About Baird Venture Partners


Baird Venture Partners, the U.S.-based venture capital fund of Baird Private Equity, makes investments in early-to growth-stage companies in the Business Services and Healthcare/Life Sciences sectors. Baird Venture Partners leverages its in-depth sector knowledge, experienced investment team and network of relationships to serve as a value-added partner for its portfolio companies.   For more information, please visit www.bairdventurepartners.com.


Baird Private Equity, the global private equity group affiliated with Robert W. Baird & Co. (Baird), makes venture capital, change-in-control and growth equity investments in the United States through Baird Venture Partners and Baird Capital Partners and in Europe through Baird Capital Partners Europe and Granville Baird Ltd, an affiliated fund manager that invests in Germany.  With more than 40 investment professionals in the United States and Europe and over 20 operating professionals in Asia, Baird Private Equity has raised and managed $1.8 billion in capital. Baird Private Equity’s operating resources in China and India, located in four offices, focus on facilitating and executing Asia sourcing, manufacturing and distribution opportunities for portfolio companies.  The group’s investments are supported by Baird’s full range of financial advice, operating expertise and industry research, providing a unique full-service approach to the entire private equity investment process. For more information, please visit www.bairdprivateequity.com.