Just seven months after revealing its Series A funding, subscription management service provider Zuora Inc. of Redwood City, Calif., has brought in a pair of new investors for a $15 million second round. Among them is co-leader Lehman Brothers Venture Partners, the venture arm of collapsed investment bank Lehman Brothers Holdings Inc., which wasn't among the assets acquired by Bain Capital and Hellman & Friedman last month. Silicon Valley firm Shasta Ventures was the round's co-leader.
Zuora claims that it wants to be "PayPal for the subscription world." The company provides on-demand, outsourced services to companies that don't want to devote resources to the management of subscription and billing plans, which are proving to be increasingly popular. The company previously raised $6.5 million from Benchmark Capital and Salesforce.com Inc. [CRM] founder Marc Benioff, who helped pioneer the online, on-demand software-as-a-service sales model.
Zuora founding CEO Tien Tzuo, himself a former Salesforce employee, told me in March that the Series A funding was designed to give Zuora 18 to 24 months' worth of cash flow. The company has since launched a pair of products, and says it has 45 paying customers.
Since the demise of Lehman Brothers, another investment from its venture unit has come to light. The firm led a $12 million round for MyShape, which helps women find clothes that fit properly. -- Paul Bonanos
See March 13 and June 19 posts from Tech Confidential concerning Zuora
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