After nabbing $13 million from its existing investors, Resonate Inc. plans to take these additional funds and spread its name around.
“We need to get exposure because we are the worst known Internet success,” said Ken Schroeder, Resonate’s president and chief executive.
Kleiner Perkins Caufield & Byers Java Fund, Chase Capital Partners, Intel Corp., Flatiron Partners, Lehman Brothers Venture Partners, TechFund and Charter Venture Capital each renewed investments in the Mountain View, Calif.-based company’s fourth round of venture financing. Integral Capital Partners also invested in the round, Schroeder said.
Resonate raised $9.8 million in its third round financing last summer (PEW July 27, 1998, p. 10). Since being founded in 1995, the company has raised approximately $29.8 million in venture financing.
While the bulk of the new capital will target increased brand recognition, the company also intends to spend a portion of the proceeds to establish new strategic partnerships. Schroeder said the company particularly is interested in working with original equipment manufacturers in order to have its product embedded in new systems.
Resonate has developed a software solution that monitors and controls e-business applications in order to maintain optimum levels of service. Customers include GeoCities, Discover Brokerage, DoubleClick, E*Trade, Excite, Federal Express, Sun Microsystems, OfficeMax, Lehman Brothers, CitiBank and BankBoston.
The company has also partnered with Sun, Siebel, Intel, Brokat, BMC, Tivoli and Red Hat to assist information technology professionals in the development of reliable e-business sites. Schroeder said Resonate’s products are suitable for small companies as well as large enterprises.
“All the existing investors were enthusiastic about stepping up,” said Russ Siegelman, a partner at Kleiner Perkins. “They are growing fast in a big market, and we really think there is a big opportunity here.”
Siegelman added that the company considered offering new investors access to the round, but said the existing investors were more than willing to provide all the capital Resonate desired.