Google Capital Invests in Care.Com

– Transaction Marks First Investment in Public Company by Google
Capital –

WALTHAM, Mass.–(BUSINESS WIRE)–, Inc. (NYSE: CRCM), the world’s largest online marketplace for
finding and managing family care, today announced that Google Capital, a
growth equity fund backed by Alphabet Inc. (NasdaqGS: GOOGL) has made a
$46.35 million investment in the Company, which makes Google Capital the
largest shareholder in Laela Sturdy, a Partner at Google
Capital, will join’s Board of Directors.

In making the announcement, Sheila Lirio Marcelo, Founder, Chairwoman
and CEO of, said, “We are thrilled to announce this investment
and to partner with Google Capital during our next phase of growth. We
remain focused on delivering on our vision of building a global
marketplace for care to help solve the needs of millions of families and
caregivers. Laela will be a great addition to our Board, bringing
significant operating and investing experience including nearly a decade
at Google/Alphabet. We look forward to bringing that expertise to bear
as we innovate our service offerings for our members and corporate
clients, while continuing to add value for our shareholders.”

Ms. Sturdy said, “ is in a unique position to help millions of
working families in search of high quality care for their loved ones,
and to help caregivers find meaningful work. Google has been a customer
of’s enterprise services for employees since 2011, so I’ve been
able to see first-hand how’s innovative mobile platform and
enterprise solution – Care@Work – helps families search for caregivers
and get much needed back-up care services. Google Capital is excited to
support in building on their market leadership by giving them
access to our biggest asset—some of the world’s leading experts in a
range of topics at Google and Alphabet – as they continue to deliver
delightful and seamless solutions to consumers and enterprises.”

Under the terms of the agreement, has issued a newly authorized
series of convertible preferred stock to Google Capital, at an initial
conversion price of $10.50 per share, representing a 21% premium to the
30-day volume-weighted average trading price ended June 27, 2016 of
$8.68. Dividends on the preferred stock accrue at 5.5% annually during
the first seven years from issuance and are payable in kind. Additional
information regarding the terms of the preferred stock, including the
conversion and redemption rights of both Google Capital and the Company,
may be found in the Form 8-K that will be filed today with the U.S.
Securities and Exchange Commission. also today announced that it repurchased 3.7 million shares of
its common stock from Matrix Partners at a price of $8.25 per share,
representing a 5% discount to the 30-day volume-weighted average trading
price ended June 27, 2016 of $8.68. The Company funded the $30.5 million
share repurchase with a portion of the proceeds from the $46.35 million
investment by Google Capital.

Morgan Stanley acted as placement agent to, and Latham &
Watkins served as’s legal counsel in the transaction.

Since launching
in 2007, (NYSE: CRCM) has been committed to solving the complex
care challenges that impact families, caregivers, employers, and care
service companies. Today, is the world’s largest online
destination for finding and managing family care, with 11.0 million
families and 8.6 million caregivers* across 16 countries, including the
U.S., UK, Canada and parts of Western Europe, and approximately 800,000
employees of corporate clients having access to our services. Spanning
child care to senior care, pet care, housekeeping and more,
provides a sweeping array of services for families and caregivers to
find, manage and pay for care or find employment. These include: a
comprehensive suite of safety tools and resources members may use to
help make more informed hiring decisions – such as third-party
background check services, monitored messaging, and tips on hiring best
practices; easy ways for caregivers to be paid online or via mobile app;
and household payroll and tax services provided by HomePay. builds employers customized benefits packages covering child
care, back up care and senior care consulting services through its
Care@Work business, and serves care businesses with marketing and
recruiting support. To connect families further, acquired
community platforms Big Tent and Kinsights in 2013 and 2015,
respectively. Headquartered in Waltham, Massachusetts, has
offices in Berlin, Austin, New York City and the San Francisco Bay area.

*As of March 2016

Capital is a growth equity fund backed by Alphabet. The fund invests in
companies that are driving disruption in their markets through long-term
technology trends. The Google Capital team works with entrepreneurs to
identify where we can make the biggest difference, and connects them
with the right expert advisors across Google’s technology, product and
business leaders to help. Google Capital’s investments to date include
Oscar, Crowdstrike, Credit Karma and Freshdesk. To learn more about
Google Capital, please visit:

Cautionary Language Concerning Forward-Looking Statements:
press release contains “forward-looking statements” within the meaning
of the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, including but not limited to, statements regarding
the anticipated contributions of Google and Google Capital to the
Company’s business, and the Company’s growth expectations, and
statements regarding future product offerings and the anticipated effect
of such offerings.

These forward-looking statements are made as of the date they were first
issued and were based on current expectations, estimates, forecasts and
projections as well as the beliefs and assumptions of management. Words
such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,”
“project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,”
“might,” “could,” “intend,” variations of these terms or the negative of
these terms and similar expressions are intended to identify these
forward-looking statements. Forward-looking statements are subject to a
number of risks and uncertainties, many of which involve factors or
circumstances that are beyond the Company’s control. The Company’s
actual results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but not
limited to: our ability to grow our membership while leveraging our
investment in sales and marketing, our success in converting non-paying
members to paying members, our ability to cross-sell new and existing
products and services to our members and to develop new products and
services that members consider valuable, our ability to protect our
brand and maintain our reputation among our members, and other risks
detailed in the Company’s other publicly available filings with the
Securities and Exchange Commission. Past performance is not necessarily
indicative of future results. The forward-looking statements included in
this press release represent the Company’s views as of the date of this
press release. The Company anticipates that subsequent events and
developments will cause its views to change. The Company undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the date
of this press release.


Nancy Bushkin, 781-642-5919
Global PR & Corporate Communications

ICR, Inc.
Denise Garcia, 781-795-7244