Zumbox Raises $8 Million For Paperless Postal Service

Westlake Village, CA – August 24, 2009 – Zumbox, the world’s first and only paperless postal system, today announced the closing of its Series A funding with a total of $8 million raised. Investors include Art Bilger (Managing Member of Shelter Capital Partners, LLC) Rick Braddock (Chairman and CEO of Fresh Direct and former Chairman and CEO of Priceline.com), Michael Eisner (Founder of The Tornante Company and former CEO of The Walt Disney Company), Bill Guthy (founding principal of Guthy-Renker) and Donn Rappaport (CEO of Zumbox and Founder and Chairman of ALC).

Zumbox has created a web-based platform that powers the world’s first paperless postal system. The company has created a digital mailbox – a Zumbox – for every street address in the country. Postal mail can now be sent as digital files and received online, with no paper, printing or postage, and no scanning.

Zumbox represents the first practical alternative to traditional postal systems. By using Zumbox, businesses and other organizations not only enjoy significant reductions in their mailing costs, but also substantially reduce their environmental impact. Consumers enjoy greater convenience as well as a richer mail experience by accessing their mail online, going paperless, and receiving multimedia content in an entirely new and innovative way. Zumbox also represents an important alternative to commercial e-mail. Zumbox is secure (it is a closed system with bank-level security); it is based on an individual’s permanent street address as opposed to his or her e-mail address (providing greater accountability and reliability); it offers rich media capabilities; and Zumbox is spam-free.

“Despite a severely challenging economic climate, we were able to successfully complete this round of funding,” said Zumbox CEO, Donn Rappaport. “New investors include some of the most well-known and widely-respected names in the technology, marketing and entertainment industries.” Adding, “Zumbox is an idea whose time has come. We see their support as a testament to the fact that the world is ready for this new communications medium.”

Following a successful pilot in New Lenox, IL, Zumbox has exited beta and will launch the first stage of its national rollout starting in Q4 of this year. The company will facilitate delivery of paperless mail to approximately one million households in select markets through partnerships with municipal governments and media companies as well as both national and local mail senders.

“Zumbox has truly created a new communications medium, one that’s certain to be as valuable as it is disruptive,” said Rick Braddock, Chairman and CEO of Fresh Direct. “By combining the unique address system of the USPS with the power of Web 2.0, the company is revolutionizing how content of all types can be distributed, accessed and consumed.”

13 thoughts on “Zumbox Raises $8 Million For Paperless Postal Service

  1. USPS should copyright the term ” mail ” and collect .44
    for every e-mail sent…..LOL….when pigs fly!!!
    This e-mail Zumbox thing IS NOT SAFE!!!
    I stick with the USPS all the way.

  2. Communications they are a changin’, but sanctity and security of the mail is the most important … are we in the age of “Totally Secure Internet Service” …? Then if that’s the case I would love to ask these very innovative geniuses : How come most people that work for companies like Oracle mail all of their bill payments via USPS ? … and FYI the biggest catalog customers prefer a paper catalog that they can see and experience in front of them. Quality of presentation is of utmost importance when you want to attract more and better customers… Did you know that more than 90% of the mail you get in your mailbox is either made from recycled materials and/or self sustained forests ( even the ink! )… Nothing compares to writing and receiving a hand written letter, postcard, or note, it will simply be preserved for future memory, but I guess the internet can do these? … on the computer screen everything looks the same. Less human interaction = more strangers and a weirder and colder society. Thank G’d for my very friendly mailman that provides me with a very warm and very professional service.

  3. This sounds good, but the above comments all are to be considered. Nice try, and the concept is nice, but there are too many variables, sources, and concepts that haven’t been considered. Good Luck on making this happen.

  4. This is dumb many many people do not use internet mostly the older people i deliver mail to and guess what they like all that so called junk mail and catalogs ,and for myself i enjoy many magazines am i supposed to read them all online never in a million years will i do that .
    and hey how about all those netflix ??how is that supposed to work after all some people think they should take over the postal service .
    just because some people are all into the computer age doesnt mean everyone wants that kind of thing technology is putting everyone in this country out of work ? shall we all depend on the government to take care of us how will that work when there are no taxes being paid by workers how will that work?

  5. Computers, for those that have them, get viruses, hacked, and confidential information in jeopardy all the time. Then you have those that can not afford a computer or internet service. How would those people receive their mail? Will you give everybody one? Now, the final question is how would you handle a forward. People move all the time and put in forwards through the post office. The letter carrier is the one that makes sure the correct mail get delivered, and forwarded. How will you make sure that happens? Or will you continue to electronically deliver mail to an incorrect “address”? The Post Office is the way to go!

  6. I too will stick to the USPS. There is no way I would do this. How many people get hacked now? This cannot be made to be secure. No way for me.

  7. exactly, how are they going to match my street address to my wireless lap top? I dont even have an internet provider at home. I use hot spots to do my e-mails. In New Orleans there’s free internet to everyone so again how is Zumbox going to get the mail to the people since it is free internet and thousands have no servers at home?

  8. I’ll stick to the USPS. At least they have Postal Inspectors to investigate when something is wrong. And it’s far safer in my opinion to mail something than it is to receive or send via the internet. Too many hackers out there. Not to mention many jobs are on the line, need to keep America working.

  9. There is nothing secure anymore in the internet; bank level security can be hacked, just like hackers have done so in so many secure websites. I’ll stick to old fashioned US Postal Service mail delivery system.
    Safe and secure all the way.

  10. “…for every street address in the country.”

    As soon as every street address has a computer and internet access then this might work. Until then it’s the USPS.

    Dumb idea, USPS considered this and rejected it about ten years ago.

  11. I can’t beleive that this is secure, I’m willing to bet a security disaster is waiting in the wings and I’m not willing to let my sensitive info get leaked on the internet, I think I’ll stick to the mailman….

  12. Are these same people going to give me free or low cost internet service, being as how I live in the country and not in an urban area. No internet for me, too expensive and limited downloads per day. gizmo

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