MENLO PARK, CA, August 24, 2004 -
Forterra Systems (formerly There, Inc.), a leading provider of large-scale distributed virtual world technology, announced today it has closed a financing round of $14,000,000 led by JVP (Jerusalem Venture Partners). Existing investors Sutter Hill Ventures and Chichen-Itza Ventures also participated.
Forterra’s software enables thousands of users distributed over the Internet to communicate and interact in real-time in a high-fidelity, three-dimensional persistent model of the world. With patented technologies for human behavior representation and distributed physics; a unique approach to scalability; and a focus on easy-to-use tools Forterra provides powerful and unprecedented solutions for a wide range of challenging new applications – from advanced real-world military systems to cutting-edge online games.
In conjunction with this financing, Forterra will expand its focus from operating consumer online services (There) to providing virtual world technologies to government, industry, education, and consumer entertainment companies. Forterra currently has a contract with the U.S. Army to develop a revolutionary new training application based on Forterra’s technology.
In parallel with the investment and change in strategy, the company has appointed Robert Gehorsam as Chief Executive Officer. Mr. Gehorsam was previously Vice President for Strategic Initiatives at There, where he led the company’s entry into the government market. He has nearly 20 years of management experience in the online entertainment, games and media sectors, and previously held executive positions at Viacom, Sony, Scholastic, and Prodigy Services.
The shareholders have appointed JVP principal Allon Bloch and Mr. Gehorsam to the board, joining existing board members Jim White, a Managing Director of Sutter Hill, and Michael Wilson of Chichen-Itza.
“Forterra’s mission remains the same as it was when we began life as There,” said Mr. Gehorsam. “We intend to be the global leader in providing technology that enables deep and sustained human interaction through virtual worlds. What is different, however, is that we see a tremendous opportunity in using this technology to address a wide range of real-world problems, from military and homeland security training and mission-rehearsal, and extending over time to enterprises and educational institutions.
“Ultimately, our networked environment will integrate real-world systems to provide powerful new types of collaboration environments, including command-and-control systems for military and emergency response customers. Furthermore, our consumer service continues to evolve and grow, and we expect to realize the enormous potential that There has created in that market.”
Mr. Bloch added: “We believe Forterra is at a pivotal moment in the company’s evolution. Along with this financing, the proven capabilities of Forterra’s technology as seen in its successful U.S. Army program and consumer service, will enable it to provide a powerful platform solution across defense, homeland security and other growing and vital market sectors.”
Mr. White noted, “Forterra is now poised to significantly capitalize on its impressive assets, including a strong technology base, a superb team, its ongoing consumer service and its growing relationships in the US government. This financing confirms our long-term commitment to the company and its unique opportunity.”
The company’s leadership team will consist of Mr. Gehorsam, President/COO Steve Victorino (previously the company’s interim CEO) and CTO Ken Duda. The company has offices in Menlo Park, Calif., and New York City.
About Forterra Systems Inc.
Forterra was founded as There Inc. in 1998, with the goal of fundamentally changing the way people interact online. Forterra’s technology enables thousands of users distributed over the Internet to communicate and interact realistically in a highly-fidelity 3-D virtual environment that can integrate with real-world databases and data streams. The company operates a proprietary consumer online service, and has contracts with the US government. The company has offices in Menlo Park, CA and New York City. For further information about Forterra, visit http://www.forterrainc.com
About JVP
JVP is a leading Israeli venture capital firm focusing on investments in early stage companies in the enterprise software & networking, semiconductors & components and communications & mobile infrastructure sectors. With over $680 million under management, and offices in Jerusalem, New York, London and Tokyo, JVP leverages its international presence, vast expertise and substantial capital base to build companies with the potential to shape and dominate global markets. To learn more about JVP, visit http://www.jvpvc.com.
About Sutter Hill Ventures
Sutter Hill Ventures is a venture capital firm that finances technology-based start-up and early-stage companies pioneering products or services in growth markets, especially those in information technology and health care. Founded in 1964, it is one of Silicon Valley's original venture capital firms. Companies backed by Sutter Hill include: Netapp, Legato, Quantum, Storage Tek, Tellabs, Alteon, Linear Technology, nVidia, BroadVision, Vitria, Molecular Devices, Cor Therapeutics, Amylin Pharmaceuticals, Omnicell, and eLoyalty.
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