October 20th, 2009
Portland’s Jive Software secures another $12 million in venture capital from Sequoia
While it may be hard for folks to agree on whether venture capital investing is on the rise or decline, one thing is for sure: Portland-based Jive Software certainly has a little more ammo in the old war chest. And it’s all thanks to another investment from Sequoia Capital—to the tune of $12 million.
That brings Jive’s VC total to $27 million. What are they going to do with the extra cash?
Well, CEO Dave Hersh outlines what they’ve be using the new infusion to do:
- It’s about innovation. We are going to continue to expand the Jive SBS product footprint by dramatically increasing our R&D efforts. We’re doing a lot more hiring! In just the last month, we have added 11 new Jivers with 10 more starting in the next two weeks. If you’re interested, take a look at our open jobs. We’re also going to be pursuing smart acquisitions that complement our portfolio.
- It’s about customers. We will build out our customer-facing teams to further support the success of our clients and to grow the company.
- It’s about partners. We have seen some great success with channel partners and we will be building out that ecosystem to get Jive onto the desktops and mobile devices of more customers. And we’ll continue to improve the “partner-friendly” aspects of our application to allow for deep yet hassle-free customization and integration.
- It’s about championing SBS. Jive has built a great community around SBS in the last few years, and we want to continue to spread that gospel. I’m happy when I see new customers say, “I never knew I could do that!” But I’m even happier when I hear them say, “This has changed how I work, and I want more.”
Okay. That all makes sense. But why would a company that is profitable, setting sales record quarter after quarter, and continuing to land big name clients take on more cash? Especially taking a follow on round that almost matches their existing capital thus far?
Well, that’s anyone’s guess. Maybe they need to be moving faster—and in this day and age, more capital can equate to more speed. Maybe they’re looking to pick up some other companies and technologies. Maybe the Palo Alto office isn’t the last of the Jive satellite offices. Maybe Sequoia just wanted a bigger piece of the pie.
Who knows? Well, I’m sure they do. And Sequoia does. But you know what I mean.
Whatever the case, Jive continues to set the pace for Oregon software venture capital—and continues to stand out as one of the most successful ventures around here in quite a while.
It will be interesting to see where this goes.
(Hat tip Jeff Martens)