San Diego Firms Score
Big on Fast-50 List
It doesn’t have the high profile of an eBay, or Amazon.com, but San Diego-based PeopleFirst.com is making a name for itself as the nation’s premier Internet auto lender.
Last month, the 5-year-old firm that launched its Internet site about three years ago issued its second bond offering for $245 million in asset backed securities.
The bond issue, assigned an AAA rating from both Moody’s and Standard & Poor’s, pays investors an average of 7.25 percent. It issued $116 million in bonds last year to obtain the funds it needed to make loans.
Justin Tisler, PeopleFirst treasurer, says that loan volume is currently averaging $70 million a month, and expanding at about 10 percent monthly.
Right now, the current loan portfolio is “in excess of $500 million,” Tisler said.
PeopleFirst’s winning approach to providing money over the Internet is approving only absolutely sterling credit quality customers and giving them the power to negotiate the best car deals on their own. Once approved, the buyers are mailed a check with the dollar amount blank, giving car shoppers the ability to borrow up to $75,000 and much stronger leverage in a transaction usually weighted to dealers.
The rates offered by PeopleFirst are among the lowest in the industry. Last week, the best rate for new car buyers was 7.95 percent.
Understandably, for this type of lending, the underwriting standards are tough. About the kind of borrowers PeopleFirst chooses, Tisler says, “We like people who pay their bills.”
Apparently, they do. In the course of making more than 25,000 loans only 11 have defaulted, Tisler said.
The loan growth is also cause for adding more staff. Over the past year, it has grown from 35 employees to about 160, with a large number falling into the categories of customer service and information technology.
From about three-quarters of a floor a year ago, PeopleFirst now leases some 25,000 square feet at the First National Bank building Downtown. By the end of this month, that will more than double to 56,000 square feet on three floors.
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San Diego Firms Dominate: Technology companies with San Diego County addresses constituted 28 out of the 50 fastest-growing high-techs in San Diego and Orange counties, according to an annual list compiled by Deloitte & Touche.
This is the sixth year for the list, which will be used by the accounting firm for a national fast-growing list of 500 next year.
To qualify for the list, companies had to be in business for five years; must not be a subsidiary or division and be headquartered in either Orange County or San Diego; have 1995 revenues of at least $50,000 and 1999 revenues of $1 million or more; and be involved in either manufacturing a technology product, using a unique technology in problem-solving, or devoting a high percentage of effort to research and development of technology.
In alphabetical order the finalists from San Diego County are: Advanced Remote Communication Solutions, Inc.; Advanced Tissue Sciences; AstroTerra Corp.; Captiva Software Corp.; Cardiff Software; CardioDynamics International Corp.; ComGlobal Systems Inc.; Composite Optics Inc.; Daou Systems; Dura Pharmaceuticals Inc.; HNC Software; Idec Pharmaceuticals Corp.; Immune Response Corp.; Innovative Medical Services; Jabra Corp.; Laser Diagnostic Technologies Inc.; Mass Hysteria Inc.; Nanogen, Inc.; Peregrine Systems Inc.; Qualcomm Inc.; ResMed Corp.; SVI Holdings Inc.; Titan Corp.; Trega Biosciences Inc.; ViaSat Inc.; Vista Information Solutions Inc.; Vista Medical Technologies Inc.; and Wireless Facilities Inc.
An awards dinner to honor the Fast-50 is scheduled for Sept. 25 at the Marriott Laguna Cliffs Resort in Dana Point.
Miva On The Move: San Diego-based Miva Corp. calls itself a “high-velocity E-commerce company,” and that’s one way to describe its growth rate.
Started four years ago, the firm now counts more than 50,000 “stores,” or customers who use its software. Among the largest are eBay, Monster.com, and Florist.com, but most are small- and medium-sized businesses looking to grab a piece of the ever-expanding world of E-commerce on the Internet, said Miva spokeswoman Shery Isler.
Miva’s first developers conference July 27-29 at the San Diego Convention Center drew about 175 registered users. In conjunction with the Miva conference, two other conferences took place at the same location: one for Web site developers and designers, and the other geared to small businesses doing business on the Web. An exhibit area of 85 companies drew some 3,500 attendees, Isler said.
From about 10 employees last year, Miva’s staff now numbers 50 at its Rose Canyon office. Sales last year of $2.5 million should be more than double by the end of this year, Isler said.
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SoftProse Acquired: SoftProse Systems, a provider of engineering services and products for digital TV and communication systems, was purchased by NextLevel Communications Inc., based in Rohnert Park, Calif.
Gopal Miglani, president and founder of SoftProse, said the price and terms of the deal weren’t disclosed, but NextLevel is a Silicon Valley high-tech firm specializing in network systems for delivery of voice, data and video. NextLevel is traded on Nasdaq.
Miglani said SoftProse, which has been working with NextLevel, should boost its staffing from a current eight employees at two offices in San Diego and Des Moines, Iowa to 12 or more over the next few months.
Incep Signs With Intel: Incep Technologies Inc., a San Diego high-tech R & D; start-up involved in developing new types of packaging for semiconductors, signed an agreement with chipmaking giant Intel Corp. last month.
Under the agreement, Incep will provide technology to Intel’s Advanced Systems Lab intended to aid in the development of small form-factor server products.
“We are excited about the opportunity to collaborate with Intel to (design a) prototype (for) what we believe will become the prominent Internet server architecture worldwide,” said Jim Hjere, vice president of Incep’s marketing and sales. Incep has 14 employees.
SeminarSource Arranges Funding: San Diego-based SeminarSource.com, an online provider of media services to the meeting and planning industry, obtained a $10 million second round of funding, led by Syncon Capital Corp. and Fleet Development Ventures. The company plans to use the funds to expand its product and services, open sales offices in new markets and boost its marketing efforts.
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The Big eSchmooze: In answer to the burning question of where can tekkies go to find a decent place to network, the San Diego Regional Technology Alliance and the San Diego Software and Internet Council are creating what is called “the grooviest networking event of the summer.”
The Big eSchmooze is scheduled for Thursday, Aug. 24, starting at 5:30 p.m. at the Hall of Champions in Balboa Park.
The event came about in response to many employees’ complaints that there isn’t a place people can network, or make new connections in a relaxed atmosphere, explains RTA spokeswoman Amelia Folkes.
“We expect a turnout of about 300. If it’s successful, we may do it biannually or maybe even monthly,” she said.
Tickets to the event are $15 pre-registered, $20 at the door.
Send any tech tidbits to mallen@ sdbj.com.
