Bowstreet Secures $7.5 Million in New Round of Financing
Tewksbury, MA – November 15, 2004 – Bowstreet™, the leading provider of application development tools for portals, today announced the completion of a $7.5 million round of financing. According to VentureOne/Ernst & Young quarterly VC report, VCs invested $1.1 billion in software companies in Q3 2004. This is the lowest amount invested since Q3 2003. In spite of an overall decline in investing, Bowstreet secured $7.5 million in financing from new lead investor IDG Ventures, and existing investors, including Charles River Ventures, Matrix Partners, Kleiner Perkins Caufield & Byers, Azure Capital Partners, and others. The funding will be used to further Bowstreet’s success in workforce management, corporate performance, and online travel solutions.
The completion of this financing follows significant developments in Q3 2004, in which Bowstreet made great advances in customer adoption, expanded patent coverage, and successfully repositioned the company in key, strategic markets. Since the company’s restart less than two years ago, Bowstreet has signed more than 60 new Global 2000 customers, including a leading international bank with over 3,000 branches in more than 60 countries and territories; and one of the world’s largest credit card companies. Other new customers include ImClone, Gillette, Caterpillar, Kroger, Mayo Clinic, Tufts Health Care, and Ogilvy & Mather. Bowstreet has exceeded its quarter-over-quarter and year-to-date sales goals, and continues to expand its global footprint by signing three new reseller partners covering Asia Pacific and European markets.
“We are pleased to lead the new round of financing for Bowstreet, which has earned a reputation for developing and delivering advanced technology that allows companies to access information vital to improving workforce productivity, enhancing business performance, increasing partner effectiveness, and raising customer satisfaction. This financing is a tribute to the company’s execution of its restart strategy, excellent leadership, talented engineering team, and recent market adoption of its solutions,” said Chip Hazard, managing general partner, IDG Ventures.
“We are delighted to welcome Chip and IDG Ventures to an already world class, outside Board of Directors,” said Michael George, president and CEO, Bowstreet. “The completion of this new round of funding is earmarked for programs designed to accelerate our growth in several new market initiatives.” Chip joins existing Board members Tim Barrows of Matrix Partners, Ted Dintersmith of Charles River Ventures, Jack Serfass, co-founder of Bowstreet, and Michael George.
Bowstreet’s restart in early 2003 began with the release of Bowstreet Portlet Factory for WebSphere. This marked a new strategic direction for the company in its transition from offering a portal framework to delivering portlet development tools designed to build dynamic, composite applications on industry-standard platforms. This transition resulted in the signing of a worldwide reseller agreement with IBM, which brought Bowstreet to the forefront of IBM’s strategic portal initiatives.
In addition to IBM as a market-leading distribution partner, Bowstreet has formed a close business alliance with ITF in Denmark. ITF is the parent company of IT Factory, the largest Lotus independent software vendor. “The alliance with Bowstreet adds proven technology to our new software brand CO-EX™, which will play an important role in the enterprise solutions market,” said Stein Bagger, CEO, ITF.
About IDG Ventures
IDG Ventures is a global venture capital firm with approximately $600 million under management and a portfolio of over 100 companies built over the last 12 years. With offices in Boston, London, San Francisco, Seattle, and throughout China and Vietnam, the firm invests in early-stage companies, partnering with entrepreneurs to build category leaders. The firm's limited partner, International Data Group, is the world's largest IT media, research, and event company. Through this partnership, IDG Ventures can uniquely add value to its portfolio companies by facilitating revenue acceleration and global expansion and establishing relationships with key strategic partners. For more information, visit www.idgventures.com.
Bowstreet is the leading provider of application development tools for portals, and is leading the industry transition to pre-packaged composite applications and distributed web-based services. Bowstreet-built applications are all powered by Bowstreet's proven Factory technology, which provides a highly flexible application development framework for assembling data and processes from disparate systems into dynamic applications that can adapt, on-demand, to unique and constantly changing business requirements. Solutions powered by Bowstreet Factory technology can be deployed in a portal, on the web, on a wireless device, or distributed as a service. Bowstreet technology is used by industry leading companies, including Amerijet, Allmerica, Cardinal Health System, Caterpillar, Cisco, Crossrail, DuPont, Fidelity Information Services, Gillette, ImClone, IT Factory, John Crane, Kroger, Mayo Clinic, Northwestern Mutual, Ogilvy & Mather, Sheetz, Tufts Health Care, UNICCO, and Vormittag. Bowstreet is headquartered in Tewksbury, Massachusetts and has offices in Boston, New York, Chicago, San Francisco, Minneapolis, and London. www.bowstreet.com.
Bowstreet and Builder are trademarks of Bowstreet, Inc. All other company names and product names may be trademarks or registered trademarks of their respective companies or owners.
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