Round1 Knocks Out $6M Series B Deal

Round1, a financial marketplace service provider that focuses on private equity markets, has snagged $6 million from the World Bank International Finance Corp. in the second tranche of its Series B deal, closing out the round with $14 million. The San Francisco-based company nabbed $8 million in the round’s first portion in March and has raised a total of $22 million in venture financing to date.

As part of its latest venture infusion, Round1 will develop, market and distribute IFC’s Web-based private equity portfolio management product. Named Private Equity Street (PES), the offering is an investment portfolio management, reporting and analysis system designed for private equity investors, fund managers and consultants.

Private Equity Street will be the third product Round1 has brought to market this year.

The round’s earlier investors included lead backer Allianz Capital Partners of Munich and Round1 Co-Founder and Chairman James Cohan.

Teresa Barger, director of the IFC’s private equity and investment funds division, also has taken a seat on Round1’s board.

Although Round1’s purpose is to create transparency in the private equity marketplace, Cohan declined to give the company’s post-money valuation except to say that it was an up round. However, he did reveal that Round1 plans to do a Series C round in the near future and expects to raise between $15 million and $20 million.

In the meantime, proceeds from the company’s most recent financing will be used to continue building out the company’s sales channels.

Round1 has approximately 50 employees and plans to add 50 more to the payroll by year-end. Additionally, Round1 may expand into Europe and Asia to meet private equity marketplace needs there, he added.

Cohan said the company expects to be profitable by the end of 2002.