Corechange Alters Balance Sheet

Just when you thought corporate America had determined every way to peer into the consumer market, another Internet infrastructure company drills another peephole.

Corechange Inc. of Boston was created in 1996 in partnership with Cambridge Technology Partners to develop a more seamless process for companies to share information across the enterprise. Although public markets will be the ultimate arbiter, the recent second round venture financing shows some early success as the company secured $17.7 million through a Prudential Securities-placed deal.

“We have always had Internet infrastructure from day one,” said Ulf Arnetz, chief executive of Corechange. “We are helping the 99% of companies that didn’t know e-business was an area that could increase sales.”

Investors that backed the company in this round include Internet holding company Xcelera.com, lead investor ABN AMRO Private Equity and HarbourVest Partners, the sole investor in the company’s first round. To date, Corechange has raised $30 million in institutional capital and an additional $5 million from individuals.

Seeking to be a Core Brand

Proceeds from the financing will primarily fuel additional sales and marketing, said Hakan Wohlin, chief financial officer of Corechange. He added that the capital should carry the company well through its near term plan for substantial product growth. Arnetz said the information that is entered into the company’s product is about prices of goods and customer desires. The system also offers a Web interface that allows constant updates of the profiles, and the product offers search and push technologies to assist in the sales process.

Current Corechange customers include ABB, AMB Property Management, British Telecom North America, Cap Gemini, City of Stockholm, Credit Suisse First Boston, Duke University, Ericsson and the WorldBank.

Arnetz said the company’s next financing likely would be an initial public offering, although he did not offer a timeframe for that event. He added that the company will look to serve the international market with its business-to-business product, once it has established its brand in the U.S.