Online accounting and business management developer Intacct has secured an additional $45 million of financing in a combination of venture funding and a debt package, the company has announced.. The new funds will be used to further invest in company growth and expanded product capabilities.
The majority of the new financing was secured through a $30 million venture funding round led by Battery Ventures, a new Intacct investor. Chelsea Stoner, a general partner at Battery Ventures, has also joined the Intacct Board of Directors. The round featured all existing active investors, including Bessemer Venture Partners, Costanoa Venture Capital, Emergence Capital, Sigma Partners, and Split Rock Partners, as well as new investor Morgan Creek Capital Management. The remainder of the funding came in the form of a $15 million debt package from Silicon Valley Bank.
"As the fastest growing mid-market cloud financial software vendor, Intacct has already established itself as a major player in the largest business application software segment," said Robert Reid, CEO of Intacct. "Our continued success in the industry, along with increased market share, has attracted additional capital for the company. This new round of funding will enable us to further accelerate our growth, drive new product enhancements, and reach into new markets."
"We already have the backing of several top venture firms and the addition of Battery Ventures and Morgan Creek Capital Management in this round is further proof of our market position and strong execution," added Reid. "I'm pleased to welcome Chelsea Stoner to our Board of Directors, and look forward to leveraging her experience in helping companies deliver accelerated results while staying committed to customer success."
Stoner has been at Battery Ventures since 2006 and specializes in investments in the software-as-a-service (SaaS) and healthcare-IT sectors. "Battery has a long history of backing innovative SaaS companies, and we were drawn to Intacct because of its brisk growth and strong product focused on the mid-market," said Stoner. "We are seeing CFOs adopt cloud solutions at an increasing pace, and we believe Intacct and its top-notch management team are well positioned to accelerate growth even further."
"As Intacct continues to grow, this additional financial support will give the team added flexibility to pursue their ambitious goals," said Joan Parsons, executive vice president of Corporate Banking for Silicon Valley Bank. "Our mission is to increase the probability of our clients' success and when we see our clients, like Intacct, reaching new stages of business growth, it is particularly rewarding."
Showcasing its track record of strong growth, Intacct today also announced record results for its second fiscal quarter, ended December 31, 2013. For the quarter, Intacct increased overall bookings by nearly 40% year-over-year. The quarter was highlighted by a nearly 60% growth in new customer acquisitions through Intacct channel partners.
Intacct and its channel partners continue to see the largest growth coming from companies looking to switch off of outdated on-premises financial systems from Microsoft and Sage to Intacct's modern, cloud financial software. These companies have struggled with software designed well over 25 years ago (pre-Internet) that requires multiple add-ons, extra hardware, costly expert customization, and ongoing IT support just to keep up with their constantly changing business needs.
With Intacct, companies gain a flexible, cloud-based system designed to streamline processes, increase business visibility, and enable them to manage their business the way they want now and in the future. Intacct's best-of-breed approach also allows customers to choose the best solution for each part of their organization at each stage in their growth, instead of being locked into a monolithic suite from a single vendor. Adopting this approach not only gives a CFO access to deeper functional capabilities, it enables them to rollout the functionality more quickly, at a lower cost, and with less risk.