PAR3 Communications Inc., a developer of a customer relationship management system, recently raised $12 million in a Series B venture capital deal. Nokia Venture Partners led the deal with an undisclosed commitment.
John Malloy, a general partner at Nokia Venture Partners, will join PAR3’s board of directors and Jonathan Ebinger, a principal at Nokia Venture Partners, will become a member of PAR3’s advisory board.
Ebinger originally heard about PAR3 through a relationship with the University of Virginia business school.
“It is recession-proof,” he said. “Companies will use them to improve customer loyalty and it appeals to a wide customer base.”
He added that Nokia made the investment with the hopes of gaining exposure in markets and technologies beyond the Washington-based company’s current reach.
Although PAR3 is already up and running with customers like Quicken Loans, Norm Thompson Outfitters and Puget Sound Energy, this second round of funding will enable the Seattle-based company to expand its marketing and sales effort and beefing up its staff. The company is currently in the middle of talks with an airline and wireless company, which could become users of the software as soon as next month.
Ken Pawlak, a PAR3 co-founder, said a Series C deal is not expected this year and profitability depends on how quickly PAR3 develops, although it could be as few as six months away.
Existing investors Draper Fisher Jurvetson and Timberline Venture Partners also exercised pro rata rights gained as part of PAR3’s initial $5.7 million last May.
Contact Danielle Fugazy.
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