NEWPORT BEACH, Calif., Nov. 17, 2005 (PRIMEZONE) -- Interfoundry, Inc. (Pink Sheets:ITFY) today announced plans for the future development and expansion of its business.
"Interfoundry was created to assist the development of emerging technology companies," said the company's President and CEO, Mark Crist. "By funding select businesses, and providing them a complete range of business resources and support services, Interfoundry intends to minimize business risk and optimize the prospects for superior investment returns."
Mr. Crist reported that the idea behind Interfoundry's approach to a portfolio of companies is to think of its portfolio as a technology incubator. Its purpose is to help identify, launch, nurture and support early-stage and mid-stage technology companies by providing the managerial support they need to develop their business model. "We look at this incubator as an avenue to assist fledgling technology companies in planning for, and achieving, success," the CEO said.
Mr. Crist said Interfoundry plans to invest more than capital in the companies it funds. "Interfoundry invests the all important expertise and experience to take an emerging technology company to the next level in its development cycle," he noted. "The company's continuing involvement in the process will result in the individual portfolio companies being spun out of the incubator through public or private sale in the future."
Noting the substantial challenges facing early stage companies, in addition to the high stake that venture capital firms typically require in them if they are to make an investment, Mr. Crist said Interfoundry would follow a different path to help new companies survive the first critical years.
"Interfoundry will be creating businesses and leveraging its resources and infrastructure to minimize the risk of business failures and to maximize the prospects for success," he stated.
"We believe that, based on our investment planning, six of our companies out of ten will survive," Mr. Crist continued. "We fully expect this model will outperform traditional venture capital models where seven out of ten companies fail."
Mr. Crist said Interfoundry would initially focus on the creation of Internet, Web-enabled and e-commerce businesses. "Targets are the user-contributed content and high traffic sectors. This is the approach that will enable portfolio companies to build the foundation for a top-line revenue stream and should hasten their progress toward profitability."
This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Interfoundry believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results of Interfoundry to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to: i. competition in the market for the company's services, ii. regulatory and legislative initiatives, and iii. deterioration in economic conditions.