Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals

Thu Nov 19, 2009 1:36pm EST

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Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook
Rentals
Chegg.com's distinctive customer value proposition and large market
opportunity recognized by new investors






SANTA CLARA, Calif., Nov. 19 /PRNewswire/ -- Chegg.com, the No. 1 online
textbook rental company, announced today that it has successfully closed $57
million Series D equity funding, led by Insight Venture Partners. In addition,
Insight Venture Partners also led a syndicate that has provided a $25 million
credit facility, adding to the $30 million in debt facility recently secured
from Pinnacle Ventures and TriplePoint Capital. With this capital, Chegg.com
plans to service the company's extraordinary growth, enhance its commitment to
best-in-class customer service and further build partnerships with publishers,
wholesalers and colleges. As part of the funding event, Deven Parekh from
Insight Venture Partners joins Chegg.com's Board of Directors. 

Using capital previously provided by Kleiner Perkins Caufield & Byers, Gabriel
Venture Partners, Primera Capital and Foundation Capital, Chegg.com has helped
hundreds of thousands of students at more than 6,400 colleges save in excess
of $65 million with its Netflix-like textbook rental model. The company
expects to double its workforce and to continue expanding its customer base
and the number of colleges it serves. 

"We are thrilled with the continued excitement from leading investors who
understand the tremendous value we provide to students around the country,"
Chegg.com Chief Executive Officer and Co-Founder Osman Rashid said. "This new
funding is a significant step up from Series C and a testament to the growing
market opportunity for Chegg.com's textbook rental offering.  With college
tuitions continuing to climb and higher unemployment rates, parents and
students are looking for any and all ways to cut costs."  

"Chegg.com exemplifies the type of company we look to invest in; a company
that provides meaningful customer value, has a strong and growing customer
base and, most importantly, an idea and an innovative spirit that drives
business objectives," said Deven Parekh, managing director of Insight Venture
Partners, which has also invested in Twitter and SolarWinds among others. "We
are big believers in the market potential for online textbook rentals and are
excited about the high-growth trajectory of Chegg.com. Insight's infusion of
new financing will enable Chegg.com to execute on its aggressive growth
plans."

Chegg.com allows college students to rent textbooks online and save 60 to 75
percent off their textbook bill. In addition to saving money, students support
the environment when they use Chegg.com; the company plants a tree for every
textbook rented, bought or sold. To date, Chegg.com has successfully planted
close to 1.5 million trees around the world. 

"The aggressive growth Chegg.com has experienced is not only because we
provide students significant savings on their textbooks -- on average $500 per
year -- but our dedication to unparalleled customer service." Chegg.com Senior
Vice President of Operations and Co-Founder Aayush Phumbhra said. "Some of the
additional funding will be used to further enhance our commitment to
best-in-class customer service and build more partnerships with publishers,
wholesalers and colleges."

About Insight Venture Partners
Founded in 1995, Insight Venture Partners is a leading private equity and
venture capital firm focused on the global software, internet and data
services industries. Insight's team is composed of experienced investors and
operating executives with more than 150 years of collective experience in
these industries, and a capital base of $3 billion to support the companies in
which they invest. The company is headquartered in New York City.

About Pinnacle Ventures
Pinnacle Ventures is a private venture capital fund focused on providing debt
and equity financing to early-stage companies across information technology,
cleantech and healthcare. Pinnacle differentiates itself through the strength
and diversity of its team, its creative and flexible financing alternatives
and its unique approach to helping its portfolio companies achieve success.

About TriplePoint Capital 
TriplePoint Capital is the leading global specialty finance company devoted to
serving high-growth private equity and venture capital backed companies
throughout their lifespan with debt financing, equity capital, and
complementary services. With unparalleled levels of creativity, flexibility
and customer service, TriplePoint Capital has been the primary debt-financing
provider to YouTube, Facebook, Adify, Coskata, Facebook, Ilypsa, Suniva,
Proteolix and numerous other high profile technology, cleantech, and life
sciences companies. TriplePoint Capital is uniquely qualified as the only
provider equipped to meet the needs of high-growth companies at every stage of
their development. Headquartered on Sand Hill Road in Menlo Park, California,
TriplePoint Capital partners with high-growth companies around the world.

About Chegg.com
Chegg.com's transformative concept of money-saving, online rental access to
textbooks has made it one of the Internet's fastest growing companies and the
number one online textbook rental company. Launched nationally in 2007,
to-date, Chegg.com has saved students more than $65 million off the cost of
textbooks at more than 6,400 colleges. With a growing inventory of more than
2.4 million titles, Chegg.com puts textbooks into the hands of students when
they need them arriving in the brand's iconic orange box. For every book
rented, Chegg.com plants a tree through American Forests' Global ReLeaf
Program. To date, Chegg.com has planted more than 3,000 acres of forests.




SOURCE  Chegg.com

Tina Couch, VP of Public Relations of Chegg.com, +1-408-855-4471,
tina@Chegg.com
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