CardoNet Catalogs $12.5M VC Round

Hoping to solve the catalog aggregation dilemmas often faced by today’s legions of business-to-business e-marketplaces, CardoNet Inc. recently raised $12.5 million in its second round of institutional funding.

The Series B offering was split into a pair of tranches with Sequoia Capital taking the initial $9 million. Existing investors Giza GE Capital Equity and Yozma Venture Capital also participated in the deal that brought the Santa Clara, Calif.-based issuer’s total venture-based capitalization up to $14.5 million.

“We were [originally] looking for half of what we got, but, in order to get aggressive in this market, it makes sense to raise a bit more than you need for the immediate future,” said Itay Mieri, chief executive with CardoNet.

Proceeds will be used primarily for sales and marketing of the company’s MarketStand Suite 2.0 catalog aggregation product that is intended to streamline the market makers’ time-to-market and automatically publish information from different vendor sources even if the vendors all utilize different data-collection software.

Such a solution will facilitate additional e-commerce for both buyers and sellers, as well as increase the reliability, accuracy and structure of product information in a site’s catalog.

“If they’re going to build a big company they need to raise a lot of money so that they can go faster in sales and marketing,” said Mark Stephens, general partner with Sequoia. “They also want to go international, but, to do so, they realized that they needed to put more gas in the tank.”

The company has no concrete plans for additional venture funding, but expects to be back in the market at some point in the future.