Woburn, Massachusetts – (The Hosting News) – February 13, 2006 – Software as a Service (SaaS)-based ecommerce platform provider, Demandware, Inc., has raised a $12 million Series B round of funding, bringing its total raised capital to $22 million.
The round was co-led by both of Demandware’s Series A investors, General Catalyst Partners and North Bridge Venture Partners, with participation from Demandware management. The financing will be used to support the continuous enhancement of Demandware’s ecommerce solution functionality, support its hiring plans, and expand the Company’s sales and marketing activities in order to capitalize on the market opportunity for ecommerce solutions.
Stephan Schambach, CEO of Demandware commented on the funding, ”We are pleased to have received a vote of confidence from both of our Series A investors through this latest round of funding. Both Larry Bohn of General Catalyst Partners and Michael Skok of North Bridge Venture Partners are experienced and knowledgeable investors in this market space. Our management team is looking forward to working with Larry and Michael to build on our mutual success, leveraging the tremendous knowledge, experience and network of contacts that they offer.”
According to the company, Demandware’s SaaS-based ecommerce solution enables retailers to meet their ecommerce revenue and profitability goals with a unique combination of merchandising control; the flexibility to adapt ecommerce functionality to meet changing business needs; and the optimal profitability that only a usage-based, Software as a Service-enabled pricing model can provide. The company was founded in the spring of 2004 by Schambach, who earlier founded Intershop, a leading provider of e-commerce software for centralized management of all online business channels, and led Intershop to a successful NASDAQ listing in 2000.
Larry Bohn, Managing Director, General Catalyst Partners, ”The Demandware team executed on its vision of developing the first fully customizable, on-demand ecommerce solution. This is a tremendous accomplishment that is further complemented by a terrific customer list that includes Vermont Teddy Bear, Gardener’s Supply, Zabars, Ansel Adams and Goldspeed.com, among others. Undoubtedly, Demandware has made
significant progress since our initial investment and we look forward to working with the team to increase the companyâ€™s footprint and continue to deliver the best on-demand ecommerce product in the marketplace.”
Michael Skok, General Partner of North Bridge Venture Partners, ”Delivering an eCommerce platform using a Software as a Service model presents clear benefits to the rapidly-expanding online retail market. Demandware is spearheading the movement by providing merchants with the merchandising control, flexibility, functionality and interoperability of a full ecommerce application suite with a usage-based pricing model. Demandware’s excellent customer traction gives us further confidence in this delivery model and this teamâ€™s ability to execute.”
According to Gartner, Inc.’s research report, ”Software as a Service Will Be Business Model of Choice by 2008,” more than 50 percent of software purchased will be via service by 2008.
To learn more about Demandware, Inc., please visit: www.demandware.com.