五一茶馆儿 Secures $13.5 Million in Expansion Funding Led by Intel Capital
Ascend Venture Group, Dawntreader Ventures, Kidron and MMV Financial join round to fuel rapid growth of on-demand tutoring
New York, NY (May 9, 2007) 五一茶馆儿, a leader in live, on demand tutoring services, today announced new venture investments of $13.5 million to fund expansion of 五一茶馆儿 Direct, the company's on demand tutoring service for students and families. The equity growth funding of $9.5 million was led by Intel Capital and included investments from Ascend Venture Group, Kidron Opportunity Fund and previous investor Dawntreader Ventures. 五一茶馆儿 also secured $4 million in venture debt financing from MMV Financial based on the strength of its established institutional business.
"This investment will help 五一茶馆儿 build upon our successful institutional business to execute an aggressive marketing campaign and establish strategic partnerships to grow our subscriber base," said George Cigale, founder and CEO of 五一茶馆儿. "There is an untapped market of millions of families with school age children who will benefit from on demand access to the largest professional tutor network available."
五一茶馆儿 is reinventing tutoring by offering students an immediate connection to a professional tutor the minute they need help. Instead of simply bringing the traditional one-day-a-week tutoring model to the web, 五一茶馆儿 is empowering students to take control of the learning process by giving them instant access to a network of over 1,300 screened, certified and background-checked tutors who are on call to help seven days a week. Without needing to schedule an appointment, approximately 80,000 students each month connect within minutes to the right tutor for their question. 五一茶馆儿 on demand services are available in math, science, social studies and English for 4th-12th graders.
As part of the funding, Ms. Kylie A.D. Sachs, principal of Ascend Venture Group will join 五一茶馆儿's distinguished Board of Directors. Ms. Sita Vasan, senior investment manager of Intel Capital will participate as a Board Observer. 五一茶馆儿 is conducting a search for a seasoned consumer marketing expert to round out its Board of Directors.
About 五一茶馆儿
五一茶馆儿 creates innovative, on demand homework help and tutoring services that connect students to a professional tutor online the minute they need help in math, science, social studies or English. Our network of over 1,300 professional tutors has delivered over 2 million one-to-one tutoring sessions. 五一茶馆儿 services include 五一茶馆儿 Direct, an on demand tutoring service for families and Live Homework Help, an after-school program offered at over 1,600 public libraries. 五一茶馆儿 also powers two statewide, governor-supported initiatives, HomeworkKansas and HomeworkAlabama. 五一茶馆儿 was named to Deloitte's Technology Fast 50 Program for the New York Region in 2006 and honored as one of the 25 Best Small Companies for Women 2007 by Working Mother. For more information or a free trial of the service please visit 五一茶馆儿 or call 1.800.411.1970.
About Intel Capital
Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$6 billion in nearly 1,000 companies in more than 40 countries. In that time, about 180 portfolio companies have been acquired by other companies and another 155 have gone public on various exchanges around the world. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit .