RightNow Technologies, a developer of Internet customer care systems, has announced that Greylock and Summit Accelerator Fund, two top tier venture capital firms, have participated in RightNow Technologies' $16.2 million first round of venture funding. Greylock acted as the lead investor.
According to RightNow the company's quarterly bookings have averaged sequential increases of over 100% in each of the past six quarters. Prior to the first round of funding, RightNow's management team bootstrapped the company using internally generated cash flow from operations.
"I'm delighted to welcome Greylock and Summit Accelerator Fund to the RightNow Technologies team," said Greg Gianforte, founder and CEO of RightNow Technologies. "We chose to work with these firms because they each have an outstanding track record of building great Internet infrastructure companies. With this funding in place, we have the capital, relationships and management team to further accelerate the growth of our business."
In conjunction with the financing, Greylock's general partner, Roger Evans, has joined the RightNow Technologies board of directors, bringing what is said to be a 'wealth of Internet infrastructure experience' to the Company.
"RightNow has clearly emerged as a leading player in the Web customer service market," said Roger Evans, general partner at Greylock, based in Palo Alto, Calif. "Web customer service is an essential Internet infrastructure building block for every Web-connected company. RightNow is well-positioned to extend its early lead in this market to build a truly world-class software company."
"RightNow's management team has done a tremendous job of growing this company to market leadership without any outside funding," said Greg Avis, a managing partner at Summit Accelerator Fund, based in Boston, MA. "Unlike every other company in this space, RightNow's business has been cash flow-positive for two years. We expect that management's focus on building a long term sustainable business will continue to reap significant value for customers, shareholders and employees."
"The market for web-enabled customer care is growing rapidly, driven by growing recognition among Internet-connected organizations that eService capability is an Internet infrastructure imperative," said Christopher Hoffman, worldwide director of Software Services Research at Framingham, Mass.-based IDC, and author of a recent report entitled 'Collaborative Service and Support Technologies: The Exploding Interactive Customer eService World.' "The market for collaborative, interactive technology solutions which will power robust, web-enabled customer care and eService initiatives will grow from $14.5 billion in 1999 to $42.8 billion in 2003. With an installed base of over 400 customers, RightNow Technologies has established a substantial presence, and leadership position, in this vital market space."