Venture Capital Flows Again: Fieldglass, Zilliant in New Funding Rounds

Services procurement specialist raises $11 million; price optimization solution provider draws $12 million

Services procurement specialist raises $11 million; price optimization solution provider draws $12 million

Chicago — January 19, 2005 — Solution providers Fieldglass and Zilliant have raised new rounds of additional venture funding, bringing in $11 million and $12 million, respectively, the two providers announced this week.

Services procurement specialist Fieldglass said that it latest funding round was led by new investor Grotech Capital Group, a private equity firm. Existing investors BlueStream Ventures, StarVest Partners and HLM Venture Partners also participated in the oversubscribed round.

Jai Shekhawat, Fieldglass' CEO and co-founder, said that the $11 million in additional capital would be used to support an expansion of the company's sales and marketing initiatives.

Fieldglass' application, InSite, is a Web-based, hosted solution platform designed to help companies more effectively manage the complexities of global services procurement. Fieldglass is headquartered in Chicago.

Meanwhile, Austin, Texas-based Zilliant said its latest, $12 million round of funding was led by new investor Cardinal Venture Capital and includes the company's existing investors, JP Morgan Partners, Austin Ventures and Trellis Partners.

Zilliant's Pricing Suite (ZPS) is designed to help companies optimize revenue and profits through modeled segmentation, precision price setting, effective discount guidelines, in-depth price analytics, intelligent deal management and successful price promotions.

This latest round of funding comes on the heals of a fiscal year in which Zilliant beat its sales plan by more than 25 percent on the back of a five-fold increase in sales. In addition, 2004 saw Zilliant's headcount grow by 45 percent, the further expansion of its management team and an increase in its customer count in all target verticals, the provider said.

"The investment made by our new and existing investors demonstrates that strategic pricing is one of the most compelling business propositions in today's market, and the returns our customers are seeing far outperforms their other software implementations," asserted Greg Peters, CEO of Zilliant.

For a look at how telecommunications equipment company Avaya is using a managed service program to get a handle on its temp labor spend, read the article "A NEW Approach to Managing Temp Labor" in the December 2004 issue of Supply & Demand Chain Executive.

For more information on professional services procurement solutions, see the article "It's All About People," the Net Best Thing column in the January 2002 issue of iSource Business (now Supply & Demand Chain Executive) magazine.

For more information on price optimization solutions from both the buy- and sell-side perspectives, see the two-part series "Finding the 'Right' Price" in the July 2001 (sell-side) and August 2001 (buy-side) issues of iSource Business (now Supply & Demand Chain Executive) magazine.