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Daily Digest: May 1, 2009
 
Compliance

Dexrex and SECCAS Partner for IM Compliance  

Survey of Spam Control Products, and Survey of Archiving Products -- See what others think of these products/services. If you add your own data, we will send you a summary of the findings.

eFolder Announces Release of Exchange Email Archiving Service
eFolder, Inc., a leader in providing brandable online backup and local backup solutions, announced today a new email archiving and mailbox storage management service for Microsoft Exchange email servers

RenewData Adds Relativity Document Review and Management Solution to Suite of Industry Leading E-Discovery Solutions
Relativity's Analytics and Search Platform Offers Scalability, Flexibility, and Ease-of-Use for RenewData's Corporate, Law Firm, and Government Clients

Messaging & Collaboration

Listrak 4.5 Introduces Range of New Automated Profiling Filters Making it Easier for Email Marketers to Improve Message Targeting and Relevancy
Email marketing provider Listrak makes list segmentation simple: New filters automatically deliver geo-tracking and contact engagement data

PGT Trucking Eliminates Spam And Unwanted Threats With Mailprotector Email Security Solution
Email Security Leader Provides Superior Protection and 24/7 Managed Infrastructure to Leading Transportation Provider

Rwanda Development Board Selects AtMail for Government Wide Email Platform
AtMail to provide intuitive email system to improve and enhance communications

Blog Item(s)

Socialtext Gets $4.5M Funding

On March 31, 2009, collaboration vendor Socialtext closed a new equity fund-raising of $4.5M.

Products, Facilities, and Competitors:

  • Socialtext provides hosted and appliance-based wikis, integrated weblogs, and social networking for workplace communities.
  • The company is especially recognized for pioneering the enterprise wiki technology.
  • The company has around 5,000 customers.
  • Customers include BASF, Boston College, CondeNet, Epitaph Records, IKEA, Intel, MicroStrategy, MWW Group, Nokia, SAP, SunGard, and Symantec.
  • Socialtext is based in Palo Alto, Calif., and also has offices in New York and London.
  • Main competitors are Jive and Atlassian.

Trading Performance:

  • The business was founded in 2002, and has 40 employees.
  • Socialtext revenues are estimated by Ferris Research at $6M-$8M.
  • The company has yet to reach profitability, but it expects to achieve this without further funding.

Funding History: Socialtext has had four funding rounds, with total money raised of $17.5M.

  • 6/2004. $450K from angels and Omidyar Network.
  • 4/2005. $3.1M. First institutional round: Draper Fisher Jurvetson, SAP Ventures, Utah University Venture Fund.
  • 11/2007. $9.5M. Draper Fisher Jurvetson, Omidyar Network, SAP Ventures, Utah University Venture Fund.
  • 03/2009. $4.5M. Draper Fisher Jurvetson, Omidyar Network, Utah University Venture Fund.

This latest funding will be used predominantly for further product development and marketing. The company believes this funding will be sufficient to take it to the cash-flow-positive stage.

Fund-Raising Process. CEO Eugene Lee describes this as:

  • Socialtext V3--a new, expanded offering--appeared to be a good basis for a new round.
  • In May 2008, once a solid demo was in place, fund-raising commenced among the traditional West Coast VC community.
  • V3 shipped in September/October 2008.
  • The launch was coincident with first major stock crash, and much venture spending was suspended.
  • By the end of October, it was clear VC funding would not be forthcoming.
  • Thus Socialtext had to go to its internal investors.
  • Terms agreed in January 2009; closed in February.

CEO Eugene Lee’s advice to other companies seeking funds:

  • Make what cash you have last as long as possible, because the fund-raising process will take longer than you expect.
  • You will need to talk to more potential investors than before the crunch.
  • Go to any existing investors early on.
  • Equity valuations are down, of course, but investors still want to see management motivated. Thus management stock and options will be favorably treated compared to external investors.
  • Later-stage investee companies are more attractive at present to most VCs because they are nearer to the exit point.
  • Everyone is now very value-conscious. Make sure your product has a value proposition for your customers that they can clearly recognize.
  • Consider one or two strategic corporate partnerships as a way of accelerating your company’s growth.

Ferris Research Comments:

  • Socialtext was an early player in the enterprise wiki marketplace.
  • Socialtext believes the opportunity for standalone wikis is limited, and thus has recently broadened its offering to encompass blogs, social networking, Twitter-like messaging, and connections with SharePoint and Lotus Connections.
  • The technology is interesting and innovative.
  • We presume a major motivation for investors was to protect an investment that has a reasonable chance of success. Since no new sources were forthcoming, Socialtext's future would otherwise have been in jeopardy.

... Mike Stackpoole

(Comments?)


Latest Buzz ... Email Archive Migration: Plan for Stubbing

We hear that Kazeon is in acquisition talks with Symantec. Any further information is welcome--please contact David Ferris at david.ferris@ferris.com or +1 415 367 3436.

Below are various active gossip threads on current events in the industry. To contribute information, follow the appropriate link or see our Gossip page for other vendor threads.


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About Ferris Research

Messaging. Collaboration. Compliance. Ferris Research analysts bring more experience in these areas than any other firm. Period.

Major areas of interest are email, archiving, e-discovery, information leak prevention, unified communications, instant messaging, SharePoint, and mobile communications. We help:

  • IT staff evaluate, implement, and maintain these technologies
  • Vendors understand the marketplace and its technologies; explain their products or services to the marketplace; and find strategic partners, raise funds, or sell their company
  • Investors find and evaluate investment opportunities

We've been in business since 1990-longer than any other analyst firm in our field:

  • Clients include many of the world's largest organizations as well as computer vendors from major corporations to small startups.
  • We have published more than 200 formal reports and 1,100 short bulletins.
  • Our news service has approximately 10,000 readers and covers more than 2,000 highly specialized announcements annually.
  • Our research team shares many decades of experience in our core competencies.

In short, our technology and industry depth helps you understand today's products, where they've come from, where they're going, and their value.


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