Intacct Raises $7M For On-Demand ERP Software
By JONATHAN SHRIEBERMay 12, 2006
SAN JOSE — Enterprise resource planning software developer Intacct Corp. has become the latest company to benefit from the popularity of businesses selling applications on demand.
The company raised $7 million in what it described as a Series B1 round of funding, VentureWire has learned, bringing the total capital invested in Intacct to more than $50 million since it was founded in 1999.
The round was led by Emergence Capital Partners, a firm that only invests in software as a service companies. Previous investors Hummer Winblad and JK&B Capital also participated in the funding.
As a result of its investment, Emergence Capital Partners founder and General Partner Brian Jacobs will join Hummer Winblad Venture Partners founder and General Partner Ann Winblad and JK&B Partner Thomas Neustaetter on the Intacct board of directors.
The capital will be used for expansion of sales and marketing, services and customer support people, said Robert Jurkowski, the 49-year-old chief executive of Intacct.
San Jose, Calif.-based Intacct currently has around 2,200 customers using its enterprise resource planning products.
Intacct attracts customers through a direct sales force and through partnerships with International Business Machines Corp. and salesforce.com Inc. In the first quarter of 2005, salesforce.com accounted for nearly 25% of the rise in customer subscriptions, according to Jurkowski.
Though Intacct attracted a lot of attention through its software-as-a-service business, other enterprise resource planning companies use a similar model. The Larry Ellison-backed NetSuite Inc. has raised $100 million since it was founded to create its own resource planning solution. And software giants Oracle Corp. and SAP AG both have plans to build out their on-demand capabilities.
"They've done reasonably well at scaling their company," said Jurkowski of NetSuite, which is rumored to be filing for registration for an initial public offering. "[But] they tend to go after the small companies, while we're continuing to scale up to larger companies. In fact, we recently completed certification so that we can support public companies and their Sarbanes Oxley requirements."