Fairfax, VA, May 31, 2005 – Rivermine Software, a leading business applications provider for enterprise telecommunications management (ETM), today announced the close of its second round of funding totaling $10 million. Led by Longworth Venture Partners, the round included contributions from existing investors Columbia Capital and Valhalla Partners. Proceeds from the financing will be used to accelerate and expand Rivermine’s product offerings as well as its sales and marketing efforts.
“Although numerous private equity firms were interested in participating in Rivermine Software’s second round, Longworth’s understanding of the telecom expense management (TEM) market and of Rivermine’s opportunity, made them the perfect partner,” said Mark Logan, CEO, Rivermine Software. “As Rivermine continues to win deals from the largest and most highly networked corporations in the world, the value of the company continues to increase and this financing reflects that growth.”
Coinciding with the investment, Paul Margolis, general partner of Longworth Venture Partners, has joined existing investors Karl Khoury of Columbia Capital and Gene Riechers of Valhalla Partners on Rivermine’s Board of Directors. “Based on extensive research, we identified telecom expense management as a fastest growing market segment with the highest potential,” said Margolis. “Rivermine is at the forefront of the TEM market and is in the best position to take advantage of market opportunities as more enterprises realize the value of their unique inventory-powered solution.”
The exploding TEM market, which encompasses software and services to acquire, provision, and support corporate telecommunications, is predicted to reach $1.2 billion in 2008, according to Gartner research .
In a 2004 research report , Gartner states, “For most companies, telecom costs are rarely audited, and most companies only maintain minimal resources to manage their telecom life cycle requirements. The greatest appeal for TEM solutions is the improved governance for telecom management and a proven record of cost reduction for telecom spending.“
Rivermine Software’s solution provides an intuitive and unified way to view, manage, and control nearly all aspects of telecommunications management. It integrates many cumbersome tasks such as service ordering and provisioning, telecom analysis and planning, and invoice processing, auditing, and payment.
About Rivermine Software
Rivermine Software is the leading business applications provider of Enterprise Telecommunications Management software. Rivermine’s inventory-powered solution provides mega-million dollar impact to clients by addressing their largest and most severe management issues: controlling expenses, process compliance, and analysis of network design, usage, and cost. A privately held company, Rivermine caters to billion dollar enterprises such as Circuit City, NEC, and Agere Systems. The company also partners with select service providers and integration companies.
About Columbia Capital
Columbia Capital is a premier private equity firm focused exclusively on the communications and information technology industries, investing in both emerging service providers and innovative, next generation technologies. Columbia Capital has invested in more than 100 communications and technology companies since 1989 and currently manages approximately $1.4 billion. www.colcap.com
About Longworth Venture Partners
Longworth Venture Partners (www.longworth.com) is a Boston-based early and expansion stage venture capital firm with a single-minded focus on partnering with exceptional entrepreneurs to build great technology companies. As entrepreneurs, senior operating executives and investors, they have established a significant track record of building successful companies and delivering superior returns.
About Valhalla Partners
Valhalla Partners is a leading venture capital firm focused on working closely with entrepreneurs to build enduring technology companies. Valhalla assists entrepreneurs by offering both seasoned advice and best practices which have been developed over the last twenty years. During that time, the Valhalla team has invested in or served as senior executives in over 100 entrepreneurial companies. For more information, visit www.valhallapartners.com.