<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
BeFree, Inc.
(Name of Issuer)
Common Stock, $.01 par value per share
(Title of Class of Securities)
073308 10 8
(CUSIP Number)
December 31, 1999
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[X] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED
IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY
VALID OMB CONTROL NUMBER.
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CUSIP No. 073308 10 8
________________________________________________________________________________
1. NAME OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY).
Matrix Partners V, L.P. (04-3399413)
________________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_]
(b) [_]
________________________________________________________________________________
3. SEC USE ONLY
________________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
________________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES -4,037,669-(1)
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY -0-
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING -4,037,669-(1)
_________________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH: -0-
________________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
-4,037,669-(1)
________________________________________________________________________________
10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[_]
________________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.43%
________________________________________________________________________________
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
________________________________________________________________________________
- -----------------------
(1) 742,500 of such shares represent shares issuable upon exercise of warrants.
Page 2 of 8 pages
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CUSIP No. 073308 10 8
________________________________________________________________________________
1. NAME OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY).
Matrix V Entrepreneurs Fund, L.P. (04-3442501)
________________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_]
(b) [_]
________________________________________________________________________________
3. SEC USE ONLY
________________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
________________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES -448,630-(2)
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY -0-
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING -448,630-(2)
_________________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH: -0-
________________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
-448,630-(2)
________________________________________________________________________________
10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[_]
________________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
1.60%
________________________________________________________________________________
12. TYPE OF REPORTING PERSON
(SEE INSTRUCTIONS)
PN
________________________________________________________________________________
- -----------------------------
(2) 82,500 of such shares represent shares issuable upon exercise of warrants.
Page 3 of 8 pages
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CUSIP No. 073308 10 8
________________________________________________________________________________
1. NAME OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY).
Matrix V Management Co., L.L.C. (04-3399412)
________________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_]
(b) [_]
________________________________________________________________________________
3. SEC USE ONLY
________________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
________________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES -4,486,299-(3)
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY -0-
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING -4,486,299-(3)
_________________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH: -0-
________________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
-4,486,299-(3)
________________________________________________________________________________
10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[_]
________________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
16.04%
________________________________________________________________________________
12. TYPE OF REPORTING PERSON
(SEE INSTRUCTIONS)
PN
________________________________________________________________________________
(3) 825,000 of such shares represent shares issuable upon exercise of warrants
Page 4 of 8 pages
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CUSIP No. 073308 10 8
________________________________________________________________________________
1. NAME OF REPORTING PERSONS.
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY).
W. Michael Humphreys (###-##-####)
________________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [_]
(b) [_]
________________________________________________________________________________
3. SEC USE ONLY
________________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
________________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES -4,486,299-(3)
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY -0-
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING -4,486,299-(3)
_________________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH: -0-
________________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
-4,486,299-(3)
________________________________________________________________________________
10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
[_]
________________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
16.04%
________________________________________________________________________________
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
________________________________________________________________________________
Page 5 of 8 pages
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CUSIP No. 073308 10 8
Item 1(a) Name of Issuer:
BeFree, Inc.
Item 1(b) Address of Issuer's Principal Executive Offices:
154 Crane Meadow Road, Suite 100
Marlborough, MA 01752
Item 2(a) Name of Persons Filing:
Matrix Partners V, L.P. ("Matrix V"); Matrix V
Entrepreneurs Fund, L.P. ("Entrepreneurs", and
together with Matrix V, the "Partnerships"); Matrix V
Management Co., L.L.C. ("Management"), the general
partner of each of the Partnerships; and W. Michael
Humphreys ("Humphreys"), the managing member of
Management who has sole voting and dispositive
authority with respect to shares of BeFree, Inc. held
of record by the Partnerships.
Item 2(b) Address of Principal Business Office or, if none,
Residence:
The address of the reporting persons is:
1000 Winter Street Suite 4500
Waltham, MA 02451
Item 2(c) Citizenship:
Matrix V is a limited partnership organized under the
laws of the State of Delaware. Entrepreneurs is a
limited partnership organized under the laws of the
State of Delaware. Management is a limited liability
company organized under the laws of the State of
Delaware. Mr. Humphreys is a citizen of the United
States.
Item 2(d) Title of Class of Securities:
Common Stock, par value $.01 per share (the "Common
Stock").
Item 2(e) CUSIP Number:
073308 10 8
Item 3 Description of Person Filing:
Not applicable.
Item 4 Ownership(4):
(a) Amount Beneficially Owned:
Matrix V is the record holder of 4,037,669
shares of Common Stock and may be deemed to
beneficially own the 4,037,669 shares of
Common Stock held of record by it.
Entrepreneurs is the record holder of
448,630 shares of Common Stock and may be
deemed to beneficially own the 448,630
shares of Common Stock held of record by it.
Management, as general partner of the
Partnerships, may be deemed to beneficially
own the 4,486,299 shares of Common Stock
held
- ---------------------
(4) As of December 31, 1999.
Page 6 of 8 pages
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CUSIP No. 073308 10 8
of record by the Partnerships. Mr.
Humphreys, as the managing member of
Management who has sole voting and
dispositive authority with respect to shares
of BeFree, Inc. held of record by the
Partnerships, may be deemed to beneficially
own the 4,486,299 shares of Common Stock
held of record by the Partnerships. The
filing of this statement shall not be
construed as an admission that any of the
reporting persons are, for the purpose of
Section 13(d) or 13(g) of the Act, the
beneficial owners of any securities covered
under this statement.
(b) Percent of Class:
Matrix V: 14.43%
Entrepreneurs: 1.60%
Management: 16.04%
Mr. Humphreys: 16.04%
(c) Number of Shares as to which the person has:
(i) sole voting power; (ii) shared voting
power; (iii) sole dispositive power; (iv)
shared dispositive power:
Matrix V may be deemed to have sole power to
vote and dispose of 4,037,669 shares of
Common Stock held of record by it.
Entrepreneurs may be deemed to have sole
power to vote and dispose of 448,630 shares
of Common Stock held of record by it.
Management, as general partner of the
Partnerships, may be deemed to have sole
power to vote and dispose of the 4,486,299
shares of Common Stock held of record by the
Partnerships. Mr. Humphreys, as the managing
member of Management who has sole voting and
dispositive authority with respect to shares
of BeFree, Inc. held of record by the
Partnerships, may be deemed to have sole
power to vote the 4,486,299 shares of Common
Stock held of record by the Partnerships.
Item 5 Ownership of Five Percent or Less of a Class:
Not applicable.
Item 6 Ownership of More than Five Percent on Behalf of
Another Person:
Not applicable.
Item 7 Identification and Classification of the Subsidiary
Which Acquired the Security Being Reported on By the
Parent Holding Company:
Not applicable.
Item 8 Identification and Classification of Members of the
Group:
Not applicable.
Item 9 Notice of Dissolution of Group:
Not applicable.
Item 10 Certification:
Not applicable.
Page 7 of 8 pages
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CUSIP No. 073308 10 8
SIGNATURE
After reasonable inquiry and to the best of the knowledge and belief of
each of the undersigned, each of the undersigned hereby certifies that the
information set forth in this statement is true, complete and correct.
DATED: February 10, 2000
MATRIX PARTNERS V, L.P.
By: Matrix V Management Co., L.L.C.
General Partner
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
MATRIX V ENTREPRENEURS FUND, L.P.
By: Matrix V Management Co., L.L.C.
General Partner
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
MATRIX V MANAGEMENT CO., L.L.C.
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
/s/ W. Michael Humphreys
W. Michael Humphreys
Page 8 of 8 pages
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CUSIP No. 073308 10 8
Exhibit I
AGREEMENT
Pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934,
as amended, the undersigned hereby agree that only one statement containing the
information required by Schedule 13G need be filed with respect to the ownership
by each of the undersigned of the shares of Common Stock of BeFree, Inc.
EXECUTED as a sealed instrument this 10th day of February, 2000.
MATRIX PARTNERS V, L.P.
By: Matrix V Management Co., L.L.C.
General Partner
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
MATRIX V ENTREPRENEURS FUND, L.P.
By: Matrix V Management Co., L.L.C.
General Partner
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
MATRIX V MANAGEMENT CO., L.L.C.
By: /s/ W. Michael Humphreys
W. Michael Humphreys
Managing Member
/s/ W. Michael Humphreys
W. Michael Humphreys
