VerticalNet
Encyclopedia
Verticalnet Inc. was a "provider of On-Demand Supply Management
solutions to companies ranging in size from mid-market to the Global 2000" and host of business-to-business
(B2B) procurement portals ("B2B hubs"). Founded in 1995 and headquartered in Malvern, PA
, Verticalnet became famous during the Dotcom bubble for its US$12 Billion valuation in early 2000, at a time when the company had few tangible assets and a revenue stream of only US$112.5 million. At the peak of its valuation, VerticalNet operated few B2B portals, plus more than 50 Internet business-to-business trading communities as well as professional communities.
In 1999, the company lost US$53.5 million on revenues of 18.4 million. In 2000, revenues increased to sixfold to $112.5 million, but losses multiplied equally, resulting in $311.3 million negative net income
that year. Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001, profitability was never achieved. In 2007, VerticalNet was sold to Italian cement manufacturer Italcementi
for USD 15.2 million.
Supply management
The term supply management describes the methods and processes of modern corporate or institutional buying. This may be for the purchasing of supplies for internal use referred to as indirect goods and services, purchasing raw materials for the consumption during the manufacturing process, or for...
solutions to companies ranging in size from mid-market to the Global 2000" and host of business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
(B2B) procurement portals ("B2B hubs"). Founded in 1995 and headquartered in Malvern, PA
Malvern, Pennsylvania
Malvern is a borough in Chester County, Pennsylvania, United States. The population was 2,998 at the 2010 census. The main road through the borough is King Street, although the borough is also bordered by Paoli Pike on the south, and is near US 30 on the north. The primary cross street is Warren...
, Verticalnet became famous during the Dotcom bubble for its US$12 Billion valuation in early 2000, at a time when the company had few tangible assets and a revenue stream of only US$112.5 million. At the peak of its valuation, VerticalNet operated few B2B portals, plus more than 50 Internet business-to-business trading communities as well as professional communities.
In 1999, the company lost US$53.5 million on revenues of 18.4 million. In 2000, revenues increased to sixfold to $112.5 million, but losses multiplied equally, resulting in $311.3 million negative net income
Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
that year. Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001, profitability was never achieved. In 2007, VerticalNet was sold to Italian cement manufacturer Italcementi
Italcementi
Italcementi is an Italian multinational company, quoted on the Borsa Italiana, which produces cement, ready-mix concrete and construction aggregates...
for USD 15.2 million.