Enterprise Software VC happenings – Week of Feb 3, 2014

Enterprise Search 2.0

Enterprise Search 1.0 saw companies like FAST (bought by Microsoft), Endeca (bought by Oracle) and Google Enterprise Search.  The plethora of data within an enterprise (both behind the firewall and on the cloud) has led to a proliferation of new startups focusing on the space.

This week, two startups, Thoughtspot and Docurated have raised money to attack this space.  Synata is another company that is focused on search as are other startups, and some are still in stealth mode.  We think the winners in the space will have to be able to search data within the enterprise and outside the cloud.  We will also see some innovative solutions on the searching of structured data.  Since it is hard for a smaller company to conquer both worlds (behind the firewall and on the cloud), companies will approach this problem by trying to create the best solution in one area and then over time develop the other capabilities.  We expect this activity to increase the size of the market and also see some M&A activity in a few years.

Enterprise Search

Thoughtspot, which has built a data search appliance, has raised $10.7 million in a Series A funding led by Lightspeed Venture Partners. Thoughtspot’s differentiation seems to be a combination of its data search engine and its in-memory database, that allows it to work with relational data.

Docurated, a New York-based document management and search platform has raised $3.75 million in Series A funding led by Rogers Venture Partners.

Sales and Marketing

Copenhagen-based email personalization software startup Mojn has raised $4 million in Series A funding from Notion Capital, Northzone and Zoar Invest.  Mojn is an email retargeting software solution provider.  Their customers are e-commerce businesses and Mojn plans to deliver relevant and personalized marketing content to all website visitors.  This is a crowded space with the likes of relatively pure plays ConstantContact and of course more platform-like plays like Hubspot and the Salesforce Marketing Cloud.

Boston-based mobile marketing and analytics platform Localytics has raised $16 million in Series C funding led by Foundation Capital and existing investor Polaris Partners. Localytics helps companies make sense of their engagement and user data and currently provides analytics and marketing for over 1 billion mobile devices and 20,000 web apps. Founded in 2008, Localytics has raised nearly $25 million in funding to date and will put the latest capital toward building out its self-service marketing content and growing its international presence. This is an extremely crowded space with the likes of Mixplanel, Fluury and Crittercism all playing a part.

BaseKit, a UK-based website building platform, has raised £4.5 million in new VC funding. AngelCoFund led the round, and was joined by return backers Eden Ventures, NESTA and Nauta Capital.  In this case, as well, this is a well funded and crowded area.  It seems to have supported a number of successful companies, like Wix, Squarespace and Weebly, to name a few.

DataRank, a Fayetteville, Ark.-based social media analytics dashboard for brands, has raised $1.4 million in seed funding. Again, this is a highly competitive space with brands being deluged with social media analytics players.  It is unclear, in our mind, as to how many startups this space can support.  DataRank is a Y Combinator company and used to be called TTagg.

TrackMaven, a Washington, D.C.–based competitive intelligence platform for enterprise marketers, has raised $6.5 million in new VC funding. New Enterprise Associates led the round, and was joined by return backers Bowery Capital and Acceleprise Ventures.  THis space is heating up – existing players like Experian with their Hitwise product and other smaller players like clearCi also have products in this space,

AtVenu, a San Francisco–based provider of live event merchandise management, has raised $1.1 million in VC funding led by Real Ventures.  AtVenu is taking a mobile and web based approach to this industry that has historically been not been targeted by software solutions.  Other companies like The PowerTex Group or CinderBlock seem to be older companies or seem to be targeting niches or both,

Celery, a San Francisco-based “pre-commerce” store builder for online and mobile shopping, has raised $2 million in seed funding. Backers include Y Combinator, SV Angel and Max Levchin. The investors are top notch and the company is focussing on the pre-order stage of the business, when companies need to fund their manufacturing and other costs through this method.

Enterprise Messaging

Continuing with the trend of consumer technologies moving into the enterprise market, a new company has raised a round to be the Snapchat of the Enterprise. Confide, the New York-based app that provides “off the record” messaging solutions for professionals, has raised $1.9 million in seed funding. WGI Group led the round, and was joined by Google Ventures, First Round Capital, SV Angel, Lerer Ventures, CrunchFund, Lakestar, Marker, BoxGroup, Jeremy Stoppelman (CEO of Yelp), Doug Ellin (Creator of Entourage) and Billy Bush.

Developer Solutions

CircleCI, a San Francisco-based developer of continuous integration and continuous delivery technologies, has raised $6 million in new funding led by DFJ.  This is one of the areas of developer solutions which is getting a lot of attention from biggest players (CA etc), medium sized players (Atlassian) and smaller startups like Drone.io.

Apportable, a San Francisco-based mobile app and game development company that lets developers share the same code for iOS and Android, has raised $5 million in new  funding. Backers include Paul Buchheit, Jerry Yang and Alexis Ohanian. There are many other players in this space such as PhoneGap and AdobeAIR.

Spiceworks, an Austin, Texas-based company that has various developer tools (Network Management, MDM, IT Help Desk and more) with an additional community focus, has raised $57 million in Series E funding. Goldman Sachs led the round, and was joined by existing investors Adams Street Partners, Tenaya Capital, Austin Ventures, Institutional Venture Partners and Shasta Ventures. The company, which took its first round of funding from Austin Ventures in 2006 now has raised around $111 million in total VC funding.

Collaboration

AtTask, a company building SaaS enterprise work management solutions, has raised $38 million in Series D funding round led by JMI Equity and was joined by existing investors backers GreenSpring Associates, Escalate Capital and University Venture Fund. This is a crowded space with companies like Clarizen and LiquidPlanner as well as giants like CA all offering solutions.

Team Management software just for a big endorsement - The Foundry Group just led a $7.5M Series B round in TeamSnap.  Existing investors Trinity Ventures, Torstar, Toba Capital and Harris Barton also joined the round.

Wisembly, a web and mobile collaborative solution that allows enterprises to prepare, facilitate and monitor meetings, events and webinars, has raised $2 million from Alven Capital.  Wisembly is based in France.

Ed-Tech

Remind101, an education communication platform has raised $15 million in a Series B round led by Kleiner Perkins with participation from previous investors Social+Capital and First Round Capital. Remind101 offers a platform that allows teachers to text students and parents safely.

Ad Tech

Jivox,which has developed a multi screen Interactive Advertising Technology Platform, has raised $5.8 million in Series C funding led by Fortisure Ventures.  Shah Capital joined the round along with existing investors backers Diaz Nesamoney, Opus Capital and Helion Advisors.

Vungle, which has built a platform to deliver in-app video ads has secured $17 million in a Series B funding round led by Thomvest Ventures. Google Ventures, Crosslink Capital, Webb Investment Network, AOL Ventures, and SoftTech VC participated in the investment. The company just raised a Series A round of $6.5M in August 2013. Momentum must be building!

Human Resource Management

Resourcing Edge Human Resources, which provides a service that allows companies to manage all their human resource needs, has raised $3.65 million  from Central Valley Fund.

Cloud Solutions

ADAR IT, which offers a complete, cost-effective IT solution to small and medium sized businesses has raised  $2.4 million in Series A funding from MK Capital.

MK Capital has also led a round in Unitas Global,which provides cloud infrastructure to large organizations. The round (amount undisclosed) was co-led by Azure Capital.

Business Intelligence

Domo, the high profile business intelligence provider led by Josh James, the former CEO of Omniture, has raised  a monster $125M Series C round led by TPG Growth. This brings the total amount raised to $249M.  Salesforce.com, T Rowe Price, Fidelity Investments, Morgan Stanley, Viking Ventures and Dragoneer Investment Group also participated.  Existing investors GGV Capital, Greylock Partners, IVP and Mercato Partners also joined the round. Domo connects to cloud based apps, on premise software, data warehouses, databases and social media to provide insights to corporations.  Domo’s website claims 500 existing customers.

Energy Tech

Genability, a software company that allows New Energy companies (solar developers, EV manufacturers etc) to better communicate their energy savings to their customers by using their database, has raised an undisclosed amount of Series A funding led by EnerNOC Inc. (Nasdaq: ENOC).

Payments

PayNearMe which allows consumers to pay cash for transactions that would otherwise require a credit card or bank information has raised $20M in a Series E Round. The round was led by GSV Capital. Past investors August Capital, Maveron, True Ventures and Khosla Ventures also participated.  Consumers can pay through PayNearMe’s locations which are at 7 Elevens, Family Dollar stores and other locations.

Other

Elementum, which focuses on supply chain managements solutions in the cloud for the mobile workforce, has raised $44 million in Series B funding from Lightspeed Venture Partners and Flextronics,  Elementum was a spinoff from Flextronics.

The trend towards cloud based SaaS solutions for specific industry continues with Palo Alto-based legal search and analytics startup Ravel Law.  The company just raised $8.1 million in a Series A funding led by NEA and NorthBridge Venture Partners.  Other funds, Experiment Fund and Work-Bench also participated. Ravel has built an intuitive Google like interface for legal information and plans to continue developing its software and also further enhance its visualization capabilities.

Totango, which optimizes user engagement for Cloud SaaS applications has raised $15.5 million in Series B funding. The round was co-led by Canvas Venture Fund (a Fund started by 3 partners from Morganthaler)  and InterWest Partners.  The round was also joined by existing Israeli investors, Pitango Venture Capital and Gemini Israel Ventures.

Magic Leap, a rather secretive company based in Florida and led by the Founder of MAKO Surgical, has raised $50 million (not a typo) in seed and Series A funding from undisclosed investors. The companies web site is still quite vague- it seems like they are building a new generation of wearable computing interfaces.

Jared Hecht, who sold GroupMe for $80M in less than a year, has raised $3.4M from First Round Capital, Lerer Ventures, Khosla Ventures, SV Angel and David Tisch.  His new startup is called Fundera and the mission of the company is to help small business owners get loans from non-bank lenders.

Crowdfunding comes to scientific research.  San Francisco based Experiment.com (formerly called Microryza) plans to use crowdfunding for projects based on science. Investors include Index Ventures and Andreessen Horowitz.

UXPin, a company developing easy to use User Interface and Wireframing tools, has raised a $1.6M round led by Freestyle Capital.  Andreessen Horowitz and IDG Ventures also participated.  The company, which has Polish founders, has developed a browser based tool that allows designers to be more productive.

 

One thought on “Enterprise Software VC happenings – Week of Feb 3, 2014

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>