Varicent Software, a provider of sales performance management and incentive compensation management solutions, has raised USD35mn in additional funding led by San Francisco and New York-based FTV Capital.
RBC Venture Partners and EdgeStone Capital Partners, current investors in Varicent, also participated in the new round of funding.
The deal was the second largest privately-funded information technology funding announced in Q3 2009, behind only Facebook. According to Ventana Research, the SPM market is growing at 45 per cent annually and in the US alone is predicted to exceed more than USD8bn in 2010.
"Varicent has developed a strong solution, assembled a driven, experienced management team, and amassed an impressive customer list. We are extremely enthusiastic about Varicent’s leadership position and outlook for continued rapid growth," says Eric Byunn (pictured), FTV Capital partner. "FTV’s strategic limited partners – many of the world’s largest financial institutions – have a huge corporate pain point in ineffective sales performance solutions. Varicent emerged at the top of our sector research because its solutions are consistently providing corporations with a measurable impact, driving sales effectiveness, increasing revenues, decreasing costs and improving internal visibility."
Varicent plans to further expand its international business, building on the launch of EMEA and APAC operations earlier in the year, accelerate the development of new features and functionality in its sales performance management solution, Varicent SPM, broaden its reach into new verticals, and advance its mid-market penetration.
"FTV Capital is a great partner and brings to us an extensive, highly attractive financial services network – a key industry vertical for Varicent," says Dan Shimmerman, president and chief executive, Varicent Software. "We have achieved remarkable success because our solutions deliver real, measurable and positive results to our customers. We look forward to working with FTV’s strategic partners to help resolve their unmet needs in SPM."
Varicent has appointed Byunn to its board of directors, effective immediately.
