May 21, 2009
Host Analytics Looks To Crack New Markets With Series B
Host Analytics Inc. has secured just under $9 million in Series B funding to explore new markets for its on-demand budgeting and planning software.
New investor StarVest Partners led the up round, with participation from existing investors Advanced Technology Ventures and Trident Capital, said John Kondo, its chief executive.
Host Analytics makes business intelligence software for budgeting, revenue planning and financial consolidation, providing its customers with a platform to view corporate performance. The company caters to customers with between $200 million and $2 billion in revenue, Kondo said.
Although it sometimes replaces or complements a system from one of the larger, on-premise business intelligence vendors, such as Oracle Corp. or SAP AG, the majority of its customers were using spreadsheets to gather data about budgeting and planning, Kondo said.
"It's enabled users to speed up budget and planning cycles," said Deborah Farrington, a general partner with StarVest, adding that the service saves on human resources and helps provide visibility for future planning. That has played well with customers in the current economy, Farrington said.
StarVest made the investment out of its recently closed StarVest II LP, a $244 million fund for expansion-stage investments in technology-enabled business services.
In February, the firm invested in PivotLink Corp., a maker of product-focused business intelligence software, also delivered as a service. Business intelligence is a solid place to invest during a recession because it "enables companies to be more efficient with what they already have," Farrington said.
Host Analytics has more than 8,000 active and paying users of its service. It charges between $58 and $150 per user, per month.
The company was founded in 2000 but didn't raise its first round of outside capital until last year, and it used the round to build its management team and its sales and marketing capabilities. The latest round will give it the "flexibility to explore new markets and new products," Kondo said.
Farrington will join the company's board of directors as a result of the round.