After raising $14 million less than a year ago, hosted financial services and accounting software developer Intacct Inc. is expected to announce Tuesday a $15 million round as it seeks to expand its customer base of small and midsize businesses.
Bessemer Venture Partners of Menlo Park, Calif., led the round for the nine-year-old company, joined by Sigma Partners of Menlo Park and Sutter Hill Ventures of Palo Alto, Calif., the leader of the previous round, and Emergence Capital, which led a $7 million restructuring round in May 2006.
Longtime investors JK&B Capital of Baltimore and Hummer Winblad Venture Partners of San Francisco, which participated in the restructuring round, sat out the last two rounds, but still retain equity in the company, alongside other early investors Caltos Capital LLC of Los Gatos, Calif., Goldman, Sachs & Co. and Deloitte & Touche LLP, both of New York, as well as Matsushita Electric Industrial Co. Ltd. of Osaka, Japan.
Intacct did not disclose a valuation for the new investment, but chief financial officer Marc Linden said it came at a significant increase from the previous round and that the company negotiated the deal directly with Bessemer after being contacted by the firm.
Bessemer partner Byron Deeter said the firm has followed Intacct as part of a strategy funding companies that develop software-as-a-service, or SaaS, technology and invested based on progress the company has made in the last two years.
Intacct's business model has been to provide accounting and financial management software as a service over the Internet since it first emerged in 1999 in the first wave of hosted software companies of the dot-com boom. The company aims its products at mid-market businesses shifting from packaged accounting software but that are not large enough to warrant adopting expensive enterprise resource management and database products, such as those sold by Redwood City, Calif.-based Oracle Corp. and Germany's SAP AG.
-- Clifford Carlsen
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