Contivo Inc., an automated data integrator, announced Monday an $8 million third round of financing. The Mountain View, Calif.-based company has been kept afloat by previous investors Voyager Capital and BA Venture Partners, which split the round about 50/50.
The capital will be used toward business expansion through additional investments in sales, marketing, operations and continued product development.
“The $8 million was exactly what we were looking for,” says Larry Lenhart, chief executive officer at Contivo. “We may still take more money, but from a strategic investor.”
Founded in June 1998, the company has raised a total of $36 million. It raised $8 million in eary 2002 and $20 million in December. While Lenhart did not disclose the company’s valuation for this round, he did say that it was not an up round from its previous round.
“The round amount we need to grow. We believe we will be positive in 2004, but signing up customers is a challenge. Our customer base tries to do it themselves, but it’s labor intensive and tedious work, but they try anyway,” says Lenhart.
Not every company is doing it themselves. Contivo has secured around 20 customers and has seen revenue for last three years.
Lenhart expects this to be the company’s final round. “The market space is large and growing fast. We are well-positioned in that space,” Lenhart says.
Curtis Feeny, a managing director with Voyager, agrees that this is probably the company’s last round. “We like the company and its prospects and would put in more if needed, but we don’t think it will need more.”
Going forward, Feeny says that Contivo needs to continue to get customer traction. “They have a very strong base of customers and they need to continue to get additional customers. If they do, I have no doubt that they will become the defacto standard in integration software. They have pretty good momentum in that direction,” Feeny says.
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