$14.5 million worth more than the money to Omniture
Better yet, why accept $14.5 million in VC dollars if on top of continued growth and profitability you've got sufficient money in the bank to keep the company going forward?
Why? Because you can more importantly because the $14.5 million was smart money.
That's the quick answer as to why Orem-based Omniture closed on a $14.5 million B round of VC funding last week, led by Hummer Winblad Venture Partners (with support from individual investors who had previously invested in Omniture).
If you don't know the Hummer Winblad name, San Francisco-based HWVP has more than $1 billion under management, and it was the first VC to decide to focus its investment efforts specifically on software companies.
To date, Hummer Winblad has had more than 60 "liquidity events" with its portfolio of companies, either through public offerings or mergers/acquisitions.
And although HWVP has been very quiet on the investing front for close to two years as the DotCom implosion sorted itself out, it now appears that Hummer Winblad is "back in the game" once again.
The HWVP investment in Omniture appears to be the fourth (and largest) single Hummer Winblad equity investment since January 1 (and perhaps since late 2002).
With the investment, Mark Gorenberg, an HWVP partner, will be added to the Omniture board of directors.
With Gorenberg and the Hummer Winblad cachet, Omniture now gets access to the HWVP Rolodex of contacts, along with the expertise of nearly 15 years of investing acumen. That's why one agrees to accept $14.5 million in funding even if you really don't need the money.
What's interesting is that VCs have been pursuing Omniture for more than a year now, looking to invest in the Web analytics firm.
It appears, however, that things came to a head after the company brought John Mellor on board as the company's new vice president of marketing.
Not necessarily a "stop the presses" type of hire, although I've known Mellor for a long time and he knows his stuff when it comes to tech marketing.
No, what was apparently important from a funding standpoint is that Mellor already knew Gorenberg, having worked previously at Viewpoint DataLabs, a company Hummer Winblad had invested in before Computer Associates purchased Viewpoint.
So although I had to push Mellor to get him to admit it, it appears the HWVP connection with Omniture was not made until after the Mellor hire.
Interesting, huh? Hard to believe that adding one person to a company can lead to a $14.5 million investment in less than six months.
Comments
- CEU biz team excels at convention 3:35 p.m.
- Shelter works to save pit bulls 3:34 p.m.
- Cashing checks costly for woman 3:33 p.m.
- Blood thinner Effient cleared 3:27 p.m.
- WGU grads are largest-ever class 3:26 p.m.
- Dems: tax the rich for health care 3:24 p.m.
- HBO defends U. logo use in 'Love' 3:06 p.m.
- Hill Cumorah Pageant 3:04 p.m.
- 2 Tooele police officers fired 2:52 p.m.
- Baseball teams fear 'haunted' hotel 2:51 p.m.
- Jazz talking Boozer trade?
- LDS seminary principal arrested
- Stadium of Fire flag burning was fake
- Reactions on Boozer speculation
- Jazz in back of line for free agents
- A primer for the 6th Potter film
- Okur signs two-year extension
- Jazz won't meet Lopez on Europe trip
- Restaurant destroyed by fire
- Mall owner seeks to retain zoning
- Bronco collecting a galaxy of recruits
141 - Letters: Palin mistreated
140 - Teachers struggle with district cuts
137 - Jazz talking Boozer trade?
132 - Blazers may offer Millsap a contract
123 - Stadium of Fire flag burning was fake
88 - LDS seminary principal arrested
83 - Moon landing: Let's hear from you
82 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
74
The photographs are mysterious, brooding, dark. They show dimples and...
in tax dollars returned to states per 2005 results Amount Returned to...
Sing it libs: Unilateral diarmament, abortion on demand take all of the...
The private Health industry is unethical as its practices has failed at...
TO - @Anonymous 11:55 | 1:05 p.m ["no one with "common sense" believes...
I think the jazz should commit to that trade because we need someone who can...
Another Mormon DOG! Where religion assumes woman are for men and for the taking.
I was told as a boy that you can only take the sacrament with your right hand...
I sense a little jealousy.
Cohen can do no wrong. I am greatly looking forward to this!
...go steal them back from the person you sold them to, return them to Tom...


You can be the first to comment on this story.