Kalido Closes $10M Series B To Continue U.S. ExpansionBurlington, Mass. -- Kalido, a data warehouse lifecycle management software company, said it has secured $10 million in a quick Series B round of financing.
Matrix Partners led the round, which closed June 30, while returning investors Atlas Venture and Benchmark Capital also participated.
Bob Potter, chief executive of Kalido, said that he started pitching VCs in April and that it was a very short process. 'Kalido has substantial revenue traction and a very mature product," he said, adding that "it was a healthy increase in valuation.'
The company will use the proceeds of the round to continue to expand its business in the U.S. and to strengthen its sales. Potter said that Kalido will develop its marketing but that the company is 'very prudent on that aspect.' Kalido will also enhance its product suite.
Burlington, Mass.-based Kalido has raised $30 million to date. Last year, it raised $20 million in a Series A round of financing from Atlas Venture and Benchmark Capital. Potter anticipates that the company won't need any more money. 'We have plenty of capital to operate the company,' he said. 'Our next funding would be for an IPO.'
Kalido had revenue of $9.3 million in 2003, up from $5.6 million in 2002. The company is targeting a 50% to 75% growth in revenue for 2004 over 2003 revenue, and hopes to be cash flow positive by the end of 2004.
Kalido also has a $5 million debt facility that it obtained in April and hasn't used yet. Potter expressed an interest in acquiring businesses that could bring some complementary technologies, but said that this isn't part of its core strategy.
The company has 24 customers, including Unilever; Royal Dutch/Shell Group of Co.; Owens Corning; Labatt Breweries of Canada, a unit of Interbrew; and Intelsat Ltd.
The Data Warehouse Lifecycle Management suite, Kalido's flagship product, provides companies with timely information for financial reporting and performance management throughout business changes, such as acquisitions. It delivers with key performance information to business executives, including financials, customers, brands, sales and marketing. Kalido will release version 8.0 of its product in September.
The business intelligence sector of the software industry has been healthy, Potter said. Kalido has signed technology alliances with enterprise data integration company Ascential Software Corp., and with business intelligence system company Business Object S.A. Potter said that Kalido wants to strengthens its partnerships.
Kalido, which was founded in June 2003 as a spin-off of Shell, currently has 84 employees, including 20 employees in the U.S. Potter said that he will hire about 15 employees by the beginning of 2005. The company also has headquarters in London and offices in Houston, New York, and Paris. It plans to open offices in Washington D.C. and in Frankfurt.
As a result of the round, Timothy Barrows, general partner at Matrix Partners, joined Kalido's board, which also includes Potter; Christopher Spray, a senior partner specialized in the information technology sector at Atlas Venture; George Coelho, general partner at Benchmark Capital; and Andy Hayler, founder and chief strategist at Kalido. Kalido is also looking for an independent director.