PayCycle, a leading provider of easy, online self-service payroll for small businesses, today announced it has secured $8.5 million in a Series D funding round led by DCM-Doll Capital Management, a leading technology venture capital firm. Also contributing to the round are new CEO Jim Heeger and previous PayCycle investors: August Capital, Conning Capital Partners, Total Technology Ventures, and Irwin Ventures. The funding will contribute to expanding the company's customer acquisition efforts within the $10 billion payroll industry.

Internet-based PayCycle(R) guides small businesses and their accountants through complete payroll management, providing everything required from accurate paycheck calculations, to timely e-mail reminders, to completed W-2's. Taxes can be paid and filed electronically. By using a Web-based solution, PayCycle dramatically reduces the complexity and cost of payroll management while leaving the small business owner in control. The service provides free customer service with payroll experts and consistently achieves a 9 out of 10 satisfaction rating from customers in quarterly surveys.

"There are about 5.1 million small employers in the U.S. and 85 percent don't outsource the payroll function because the current options are too expensive and generally offer small businesses poor customer service," said DCM general partner Tom Blaisdell. "With such an attractive market opportunity and an already exceptional product, we believe PayCycle is well positioned to capture a significant portion of that market."

"DCM is an ideal investor for us," said CEO Jim Heeger. "The firm's track record in supporting its portfolio companies was a big factor in why we chose them as our investor partner to lead this round. In addition, having worked with Tom before, I personally know the strategic expertise he is capable of providing. His experience will be a real plus for PayCycle."

Since its formation in 1999, PayCycle has raised $29.3 million in venture funding.

About PayCycle

Headquartered in Palo Alto, Calif., PayCycle's online self-service solution takes customers through the entire payroll process from paychecks to W-2's. PayCycle is the only self-service payroll offering with complete support for tax deposits and filings in all 50 states and the District of Columbia.

A well-known payroll technology leader, PayCycle has received numerous industry accolades, including a "Five Star Excellence" rating by PC Magazine two years in a row. PayCycle is also listed as one of Accounting Today's "Top 100 Products." The company is the premier IRS development partner for small business XML e-filing standards. Both Microsoft Money(R) and CCH(R), a leading provider of tax and business law information and software, selected PayCycle to be the payroll solution of choice for their customers.

For more information, visit www.paycycle.com.

About DCM - Doll Capital Management

DCM is a top-performing venture capital firm supporting entrepreneurs building early stage technology companies. DCM manages over $1 billion and has funded leading technology companies including 2Wire, 51job, About.com (Primedia), Foundry Networks, HireRight, Internap, Ipivot (Intel), nQuire (Siebel), PGP Corporation, Recourse Technologies (Symantec), SMIC, and Sigmatel. DCM offers hands-on operational guidance and access to an extensive network of resources, including close relationships with many of the Pacific Rim's leading companies and investors. Visit DCM's Website at www.dcmvc.com.