Brainshark, Inc. Secures $6.9 Million Financing in Oversubscribed Round
Brainshark, Inc. Secures $6.9 Million Financing in Oversubscribed Round
Bullish Outlook For Company's Leadership in Rapidly Growing Segment of Web-based Communications Market Attracts Investment from New and Existing Investors to Fund Expansion
WALTHAM, Mass.--(BUSINESS WIRE)--June 13, 2005--Brainshark, the leader in on-demand rich-media communications solutions, announced today that it has successfully completed a $6.9 million round of Series C financing. The funds will be used to further establish and grow Brainshark's leadership position in the market, accelerate the growth of its sales force, and expand distribution channels. New investor Ticonderoga Capital was joined by previous investors 3i, Flagship Ventures, SI Ventures and Citizens Capital in this oversubscribed round. Tyler Wick of Ticonderoga Capital will join the Board of Directors.
Brainshark provides web-based applications that enable users to communicate more quickly and effectively using voice-enriched on demand presentations that can be created and viewed at each person's own schedule and convenience. Brainshark excels at uniquely offering the ease of use that businesspeople want with the enterprise-class capabilities that Fortune 1000 companies need in terms of scalability, feature sets, security, flexibility, reporting and tracking, and the ability to integrate with other applications and business processes.
According to Wainhouse Research, the on-demand segment of the web-based collaboration and communications market is growing at a compound annual growth rate of 94%. Brainshark is experiencing strong demand for its solutions which are used in selling, marketing, training, and corporate communications to reach audiences with rapidly-delivered, highly effective and trackable communications.
"What attracted us to Brainshark were the demonstrated results and experiences of the companies in its stellar and growing customer base of over 300 blue-chip companies," said Tyler Wick, co-founder, Ticonderoga Capital Inc. "Customers using Brainshark's applications are realizing high return on investment, and increasing their usage month-over-month - and are quite enthusiastic about it, with good reason. We're confident of the outlook for this market, and are excited to join with existing investors in helping Brainshark to leverage the strong and rapidly growing demand for its solutions."
"The on-demand segment is one of the fastest growing areas of the web based collaboration and communications market, and Brainshark is very well positioned with a well integrated suite of offerings, brand-name customers, and key partner relationships," said Paul Ritter, Research Director with Wainhouse Research . "Communications and training tools that allow companies to rapidly create and deliver compelling content are the drivers that are fueling the growth of the on-demand rich media sector."
"The overwhelming success achieved during this recent round of financing further supports the compelling business need we serve and strategically positions Brainshark to take full advantage of the market growth at this most opportune time," said Joe Gustafson, CEO, Brainshark. "Securing funding from such a distinguished pool of new and existing investors enables us to strengthen our leadership stake and leverage market expectations."
About Brainshark, Inc.
Brainshark, Inc. is the leading provider of rich-media solutions that enable companies to communicate business knowledge quickly and consistently. The Brainshark Communications Platform empowers the average business professional to create, manage, and share on-demand presentations that combine voice, text, graphics, and business documents. With its enterprise-class content management, security, and standards-based API's, Brainshark is the choice of global companies to communicate faster and more effectively with their employees, customers and partners. Companies are increasing revenue and reducing cost using Brainshark solutions for sales, marketing, training, and corporate communications. For more information, visit www.brainshark.com.
About Ticonderoga Capital
Ticonderoga Capital is a venture capital firm focused exclusively on expansion stage technology-enabled business services companies. With $200 million under management and offices in Wellesley, MA and Menlo Park, CA, Ticonderoga makes $2-$5 million equity investments in growth capital, shareholder liquidity, and recapitalization financings. Ticonderoga targets companies that have developed proven business models with experienced management teams and predictable revenue and profit growth. For more information, visit www.ticcap.com.
About Flagship Ventures
Flagship Ventures is an early-stage venture capital firm focused on creating, financing, and building companies in the Life Science and High Technology sectors. Flagship's team of fourteen investment professionals is among the most experienced in the industry and represents a balance of venture capital, corporate executive, and entrepreneurship expertise. Headquartered in Cambridge, MA, Flagship Ventures was founded in 1999 and manages approximately $800 million. For more information, visit www.flagshipventures.com.
3i is a leading international venture capital and private equity firm that was founded in 1945 to invest in buyouts, growth capital and venture capital in order to create market-leading companies. Since its inception, 3i has invested over $32 billion worldwide and has a total staff of 700 employees operating out of 28 offices in 14 countries.
In the U.S., 3i invests in both early and late stage technology companies in the software, communications, semiconductor and healthcare sectors. 3i partners leverage over 150 years of investing and operating experience and a global network to create value for their portfolio and investment partners. With a proven track record and knowledge of venture capital investing, 3i provides hands on support and guidance in building and scaling successful businesses. Visit 3i and its portfolio at www.3i.com.
SI Ventures is a leading Southeastern Venture Capital firm focusing on information technology (IT) and communications infrastructure companies. The SI Ventures team consists of a unique combination of executives with operational experience and industry knowledge, enabling portfolio companies to reach superior results.
In addition to the expertise of the managing directors and the SI Ventures team, the firm has a unique strategic partnership with Gartner, the world's leading provider of IT research and analysis, market intelligence, consulting and advisory services. The ability to access more than 1000 analysts and consultants and the capability to reach more than 1 million IT professionals through SI Venture's relationship with Gartner are assets unheard of in the venture capital arena. Visit SI Ventures at www.siventures.com.
About Citizens Capital
Citizens Capital, Inc., the private equity arm of Citizens Financial Group, Inc., provides equity and mezzanine capital to privately held businesses across the United States. Headquartered in Boston, Citizens Capital was founded in 1997 and has invested more than $500 million in a variety of stages of growth ranging from venture capital to leveraged buyouts and recapitalizations. Growth equity investments typically range from $1 - $3 million and subordinated debt investments typically range from $3 - $15 million. For more information, visit Citizens Capital and its portfolio at www.citizenscapital.com.
Claire Spina, 781-842-3381