After deciding that a possible valuation bump wasn?t worth the time and aggravation of securing new term sheets, e-business software developer Altaworks Corp. recently reopened a Series A funding round that had initially closed last March at $12 million. The renewed offer brought in an additional $13.8 million, which brought the deal?s final post-money valuation up to approximately $36.2 million.
Existing backers St. Paul Venture Capital and Prism Venture Partners maintained their positions as lead investors on the round, with YankeeTek Ventures participating as the only new institutional player. A handful of private individuals were also involved.
“We went back out at the end of last year and originally wanted to get an outside lead, but the market was difficult,” said David Centauro, chief financial officer with Altaworks.
Centauro was quick to note, however, that he and company COO Steve Campbell felt the offer was fair and that he was simply happy to get anything done, especially considering the current backlash against [businesses] having to do with e-business.
“What?s happened to [e-business] was very problematic, but it didn?t change anyone?s belief in what we?re doing,” Campbell said.
Indeed, the company?s investors seem convinced that Altaworks? software ? which deals with performance management of online transactions ? will be able to find enterprise customers amid the dotcom rubble.
“Web concepts are not going away, and most of the companies dealing with this issue are looking at it from a purely vertical perspective, which doesn?t let you know where problems truly reside,” said Tim Kraskey, a managing director with YankeeTek Ventures.
Altaworks, on the other hand, is trying to go horizontal by having its software analyze real-time transactions, instead of the synthetic ones favored by many other players in the space. Valerie O?Connell, a managing director of enterprise systems management with Aberdeen Group, said synthetic transactions have their place, but that real-time sampling can take many more factors into account.
“Only real-time can show you how all of your systems are working,” she said.
Altaworks does not have any current plans for a Series B financing, although it has not ruled out any future financing possibilities.
Contact Dan Primack: Daniel.Primack@tfn.com