Enfrastructure Gets Microsoft Investment

Microsoft is joining Arthur Andersen, IBM, and other investors in a US$100 million first round of financing for a new venture that will offer everything a start-up needs—including the kitchen sink—to get its business running. Enfrastructure Inc. will create business campuses around the world that offer their clients not only buildings to work in but also computers, data centers, networks, recreational amenities, software, telephone systems, and related business services such as accounting, public relations, and investment banking.

Enfrastructure will provide financing and will reduce capital burn rates by allowing companies to pay for everything in a monthly bill, eliminating the substantial up-front costs that many start-ups need to pay for offices and equipment. Enfrastructure’s suite of services will also be available to off-campus firms. The partners will take an equity stake of 7.5% or less in client companies.

The first Enfrastructure facility will open in Orange County in December, with 18 such parks currently planned for the United States. The first Asian park will open in Hong Kong in the first half of 2001, and European ventures will follow. Hanny Holdings of Hong Kong will operate the parks in Asia.