<PAGE>

                                                                   EXHIBIT 10.07

                            [LETTERHEAD OF DOVEBID]


September 22, 1999



Mr. Cory M. Ravid

Dear Mr. Ravid:

I am very pleased to offer you the opportunity to join DoveBid as Chief
Financial Officer, reporting to me.

Your base salary will be $18,750 per month, paid bi-monthly ($225,000 annually).
You will receive a minimum guaranteed salary increase of 10% of your base
salary after your first and second year of service.

In addition, you will be eligible to receive an annual performance bonus (based
on achievement of mutually agreed objectives) with a maximum pay-out opportunity
of 40% of your annual base salary. We will also provide you with a sign-on bonus
of $40,000.

You will also receive 550,000 shares of stock once granted by the board of
directors at their next regular meeting, vesting over 4 years at 25% per year.
The option price per share will be at the "Series A" price. The stock options
granted to you will be subject to the most favorable terms extended to all
executive officers as it pertains to vesting and change of control.

Cory, please be advised that the title of Chief Financial Officer is subject to
our officer approval process and this offer is contingent upon completion of
DoveBid's background and credit checks and your providing proof of right to work
in the United States acceptable to the Immigration and Naturalization Service
within three days of your date of hire.

Also, please note that if hired by DoveBid, your employment is at-will and that
employment may be terminable at any time with or without cause by either DoveBid
or yourself. Furthermore, although terms and conditions of employment with
DoveBid may change, such changes will not affect the at-will employment
relationship between yourself and DoveBid. This statement of the circumstances
under which employment can be terminated constitutes the complete understanding
between yourself and DoveBid. No other promises or statements are binding unless
in writing and signed by you and a Member of DoveBid's Board of Directors.

<PAGE>

Mr. Cory Ravid
September 22, 1999
Page 2

Notwithstanding your at-will employment relationship with DoveBid, the following
employment termination severance provisions will apply. If you are involuntarily
terminated for reasons other than cause as defined below or are constructively
terminated as defined below, DoveBid will provide you with a severance package
equal to six month's base salary.

"Cause" shall mean willful or gross neglect of the duties for which you were
employed (other than on account of a medically determined incapacity which
renders you unable to regularly perform your usual duties); committing fraud,
misappropriation or embezzlement in the performance of your duties; committing a
felony; disclosure of confidential information in violation of DoveBid's written
policies; or willfully engaging in conduct materially injurious to DoveBid.

"Constructive Termination" shall mean a material adverse change in your position
so as to be of materially less statute and materially less responsibility, or a
reduction of more than 20% of your base compensation. Under such circumstance
you may elect to treat such as a constructive termination by notifying DoveBid
in writing within 30 days thereafter that as a result you are terminating your
employment voluntarily.

In the event of your death, you and your estate will not be entitled to any
severance pay; however, you and your estate will receive those benefits normally
granted to DoveBid employees in the event of such occurrences.

You will be granted all standard benefits commensurate with your role as an
executive officer, which include but are not limited to medical, dental, vision
and other coverages, as well as reimbursement for all work related expenses
including cellular phone charges.

If you accept this offer of employment from DoveBid, please sign and return this
offer letter. We must receive this document before your start date, which shall
be on or before October 15, 1999.

We are looking forward to your joining DoveBid, and expect a most rewarding
mutual relationship in the years to come. All of us here are thrilled with the
chance to work side by side with you in building our great company. If you have
any questions regarding the terms of this offer, please feel free to contact me
at (650) 571-7400 ext.602.

Sincerely,
DoveBid, Inc.

/s/ Ross Dove
----------------------------------------
    Ross Dove
    Chairman and Chief Executive Officer

Agreed to and accepted:

/s/ Cory M. Ravid                                   9-24-99
-----------------------------------------------------------
    Cory M. Ravid                                    date

<PAGE>

                            [LETTERHEAD OF DOVEBID]


                               November 8, 1999



Mr. Cory M. Ravid



Dear Cory:



This letter shall serve as a supplement to your Employment Offer Letter ("EOL")
dated September 22, 1999. To the extent, if any, the terms herein contradict any
terms or conditions set forth in the EOL, the terms deemed more favorable to
Ravid will be given full meaning and effect. The following terms are hereby
incorporated into the EOL:

         1. Indemnification. In the event you are made, or threatened to be
            ---------------
made, a party to any legal action or proceeding, whether civil or criminal, by
reason of the fact that you are or were an employee, director or officer of
Dovebid or serve or served any other corporation owned or controlled by Dovebid
in any capacity at Dovebid's request, you shall be indemnified by Dovebid, and
Dovebid shall pay your related expenses when and as incurred, all to the fullest
extent permitted by law.

         2. Equity. You have been granted 700,000 DoveBid stock options (the
            ------
"Shares"). You may pay the entire purchase price with a full recourse promissory
note (the "Stock Purchase Note") which will be secured by the Shares and will
accrue interest monthly at the minimum rate sufficient to avoid imputation of
income under the Internal Revenue Code of 1986, as amended (the "Code"). There
will be no prepayment penalty. Dovebid shall have the right to repurchase any
shares that have not vested pursuant to either the preceding sentence or
paragraph 7 below, or upon your termination of employment for any reason.

         3. At-Will Employment. Your employment with Dovebid will be at-will and
            ------------------
may be terminated by you or by Dovebid at any time for any reason as follows:

            (a) You may terminate your employment upon written notice to the
Board of Directors at any time in your discretion ("Voluntary Termination ");

            (b) You may terminate your employment upon written notice to the
Board of Directors at any time for "Good Reason" as defined below ("Involuntary
Termination ").

            (c) Dovebid may terminate your employment upon written notice to you
at any time following a determination by the Board of Directors that there is
"Cause," as defined below, for such termination ("Termination for Cause");

            (d) Dovebid may terminate your employment upon written notice to you
at any time in the sole discretion of the Board of Directors without a
determination that there is Cause for such termination ("Termination without
Cause");

<PAGE>

                            [LETTERHEAD OF DOVEBID]

            (e) our employment will automatically terminate upon your death or
upon your disability as determined by the Board of Directors ("Termination for
Death or Disability"); provided that "disability" shall mean your complete
inability to perform your job responsibilities for a period of 90 consecutive
days or 90 days in the aggregate in any 12-month period.

         4. Definition. For purposes of this agreement, the following terms
            ----------
will have the following meanings:

            (a) "Cause" means (i) gross negligence or willful misconduct in the
performance of your duties to Dovebid (other than as a result of a disability)
that has resulted or is likely to result in substantial and material damage to
Dovebid, after a written demand for substantial performance is delivered to you
by the Board of Directors which specifically identifies the manner in which the
Board believes you have not substantially performed your duties and you have
been provided with a reasonable opportunity to cure any alleged gross negligence
or willful misconduct; (ii) repeated failure to perform your duties to Dovebid
as requested in writing by the Board of Directors (other than as a result of a
disability); (iii) commission of any act of fraud with respect to Dovebid; or
(iv) conviction of a felony or a crime causing material harm to the business and
affairs of Dovebid. No act or failure to act by you shall be considered
"willful" if done or omitted by you in good faith with reasonable belief that
your action or omission was in the best interests of Dovebid.

            (b) "Change of Control" means (i) any person or entity becoming the
beneficial owner, directly or indirectly, of securities of Dovebid representing
fifty (50%) percent of the total voting power of all its then outstanding voting
securities, (ii) a merger or consolidation of Dovebid in which its voting
securities immediately prior to the merger or consolidation do not represent, or
are not convened into securities that represent, a majority of the voting power
of all voting securities of the surviving entity immediately after the merger or
consolidation, (iii) a sale of substantially all of the assets of Dovebid or a
liquidation or dissolution of Dovebid, or (iv) individuals who, as of the
Commencement Date, constitute the Board of Directors (the "Incumbent Board")
cease for any reason to constitute at least a majority of such Board; provided
that any individual who becomes a director of Dovebid subsequent to the
Commencement Date, whose election, or nomination for election by Dovebid
stockholders, was approved by the vote of at least a majority of the directors
then in office shall be deemed a member of the Incumbent Board.

            (c) "Good Reason" means the occurrence of any of the following
events without your prior written consent: (i) a reduction in your base salary;
(ii) a material adverse change in your title; (iii) a material adverse change in
your responsibilities or authority; (iv) a material reduction in your employee
benefits other than a reduction in employee benefits which applies to all
Dovebid employees of comparable position and experience; or (v) a relocation of
your place of employment outside of the seven (7) Bay Area counties.

         5. Separation Benefits. Upon termination of your employment with
            -------------------
Dovebid for any reason, you will receive payment for all salary and unpaid
vacation accrued to the date of your termination of employment. Your benefits
will be continued under Dovebid's then existing benefit plans and policies for
so long as provided under the terms of such plans and policies and as required
by applicable law. Under certain circumstances, you will also be entitled to
receive severance benefits as set forth below, but you will not be entitled to
any other compensation, award or damages with respect to your employment or
termination.

<PAGE>

                            [LETTERHEAD OF DOVEBID]

            (a) In the event of your Voluntary Termination, Termination for
Death or Disability or Termination for Cause, you will not be entitled to any
cash severance benefits or additional vesting of shares of options.

            (b) In the event of your Termination without Cause or Involuntary
Termination, you will be entitled to a cash severance payment equal to six
months of your base salary. If such Termination without Cause or Involuntary
Termination occurs within one year of the Commencement Date, you will be
entitled to accelerated vesting of the Shares and any other shares, whether or
not subject to options, subsequently granted to you that would otherwise have
vested through the first anniversary of the Commencement Date and for such
additional period as cash severance, if any, is paid to you after such first
anniversary. If such Termination without Cause or Involuntary Termination occurs
on or after the first anniversary of the Commencement Date, you will be entitled
to six months of accelerated vesting of the unvested Shares and any other
shares, whether or not subject to options, subsequently granted to you.

            (c) In the event of your Termination without Cause or Involuntary
Termination within sixty days prior to or one year following a Change of Control
that occurs within one year of the Commencement Date, you will be entitled to a
cash severance payment equal to one year's base salary plus your annual bonus,
and two years of accelerated vesting of the unvested Shares and any additional
shares, whether or not subject to options, that are granted to you. In the event
of your Termination without Cause or Involuntary Termination within sixty days
prior to or one year following a Change of Control that occurs on or after the
first anniversary of the Commencement Date, you will be entitled to a cash
severance payment equal to one year's base salary plus your annual bonus, and
accelerated vesting of all of the unvested Shares and any additional shares,
whether or not subject to options, that are granted to you.

            (d) In the event of a Change in Control, the Company agrees that it
will use its best efforts (including prior approval as stockholders by members
of the Board of Directors) to satisfy the shareholder approval requirements of
Section 280G of the Code such that payments made to you hereunder will not
constitute a "parachute payment" within the meaning of Section 280G of the Code.
If, due to the benefits provided under this letter agreement, you are subject to
any excise tax due to characterization of any amount payable hereunder as excess
parachute payments pursuant to Sections 280G and 4999 of the Code, the Company
will pay the amount of excise tax initially payable by you under Section 4999 of
the Code, but will not otherwise "gross-up" the amount payable to you such that
the net amount realizable by you is the same as if there were no such excise
tax.

            (e) No payments due you hereunder shall be subject to mitigation
or offset.

         6. Successors. This agreement is binding on and may be enforced by
            ----------
Dovebid and its successors and assigns and is binding on and may be enforced by
you and your heirs and legal representatives. Any successor to Dovebid or
substantially all of its business (whether by purchase, merger, consolidation or
otherwise) will in advance assume in writing and be bound by all of Dovebid's
obligations under this agreement.

         7. Governing Law. This agreement will be governed by the laws of the
            -------------
state of California without reference to conflict of laws provisions.

<PAGE>

                            [LETTERHEAD OF DOVEBID]


         We look forward to your contributions as part of the Dovebid team.

                               Sincerely yours,

                               /s/ Ross Dove
                               ------------------
                                   Ross Dove, CEO

By signing this letter, I am agreeing to the above.


Signature: /s/ Cory Ravid         Date:   11-8-99
          -----------------               -------