$6.1M Indicates Unique Series A

The profile of a Series A venture-backed company often isnt as mature as Indicative Software. The Fort Collins, Colo.-based enterprise software provider has a product and an agreement to license software technology from Agilent Technologies.

When it set out to raise its Series A funding, the venture world didnt quite know what to make of the company.

Were not your typical startup company, says Angela Tucci, Indicatives vice president of marketing.

Nevertheless, investors have since pumped $6.1 million into Indicatives Series A round, which is expected to be announced this week.

Sequel Partners and Sutter Hill Ventures each invested about $2.3 million in the deal.

The company is announcing its Series A fund-raising as it launches Indicative 6, its latest software.

Ron Bernal, a venture partner with Sutter Hill Ventures, expects the company to raise a Series B round at the beginning of 2005 and be profitable soon thereafter. He sits on the board alongside Tim Connor of Sequel, David Dwyer of Vista Ventures, CEO Tilman Schad and President John Smith.

Vista Ventures provided bridge funding for the company last year and brought the investment team together. Vistas convertible loan of less than $1 million was rolled into the Series A.

The company plans to expand significantly. It has 15 employees now and expects to grow to between 25 and 30 by the end of 2004. Schad says that the enterprise software market, while healthy, often lacks in its responsiveness to clients and end users.

Nonetheless, enterprise software has been and remains a popular sector for venture investors. According to Thomson Venture Economics (publisher of PE Week), venture capitalists invested more than $662 million in enterprise software companies so far this year.

Recent deals illustrate the sectors staying power. Innoprise Software Inc., an Orlando, Fla.-based enterprise software company that serves utilities and local governments, raised $4 million in a Series A funding led by ArrowPath Venture Partners.

Bothell, Wash-based enterprise software provider Dexterra raised $16 million in Series B funding led by Canaan Partners.