Financial Daily from THE HINDU group of publications
Thursday, Apr 01, 2004
Financial Daily from THE HINDU group of publications Thursday, Apr 01, 2004 |
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Info-Tech
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Venture Capital Nth Orbit raises $11 m in second round of funding Our Bureau
Chennai , March 31 THE San Jose-based start-up, Nth Orbit, has completed its second round of venture capital funding when it raised $11 million (around Rs 50 crore). The company recently opened its office in Chennai, which will be used for research and development on the corporate compliance software it has developed. According to Ms Vani Kola, President and Chief Executive Officer, Nth Orbit, the funding this time was from Sequoia Capital, Ignition Partners, Jumpstartup, all of which had participated in the earlier round of funding, and Evercore Partners. In the first round of funding, Nth Orbit had raised $14 million. Nth Orbit has developed Certus, a software that helps companies comply with the provisions of the Sarbanes-Oxley Act on corporate governance and compliance. Certus helps companies map their accounting and financial systems and perform continuous monitoring. This will help in proper compliance with the Sarbanes-Oxley Act, according to her. The Chennai office would have about 45 people within the next four months and about 100 over the next 12 to 18 months. This centre would be a mirror of the establishment in San Jose. Core product development would be done at both the offices. Nth Orbit had also contracted some work to HCL, she said. Ms Kola said that the market for compliance software products and services was estimated at about $5 billion. Nth Orbit would target the Fortune 500 companies to sell its product. Services would constitute about 15 per cent of its revenues. She said that after the second round of funding, there was a commitment from Nth Orbit to the investors to make the company profitable by 2005. Its revenues were expected to grow from about $6-7 million at the end of this year to about $15-20 million in 2005. Nth Orbit is the second company she had started. The previous one, RightWorks, an e-procurement company, was sold to ICG for $1.2 billion. Ms Kola said the company's revenues would be from licensing the product to its clients based on the number of people using it. She was confident about the company's prospects, given the need for compliance on a monthly basis by companies listed in the US.
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