MarketSoft Spends $50G to Gain $45M

Share this article:
MarketSoft Corp., Lexington, MA, said it spent a little more than $50,000 pitching itself to capital investors during the last three months as it successfully gathered $45 million in funding.


The 2-year-old Internet marketing software firm spent $45,000 on legal fees, $5,000 on travel expenses and $1,500 on long-distance phone calls. The expenditures were accrued while courting a handful of existing investors, as well new ones such as American Express Financial, Minneapolis, Putnam Investments, New York, and J&W Seligman & Co. Inc., New York.


MarketSoft, which has yet to turn a profit, had $7 million in cash before the funding roundup, said CEO Greg Erman. While not offering a specific timetable for profitability, Erman predicted his firm would be making money before the $45 million runs out.


To save cash during the investment negotiations, he said he dealt with the investors directly instead of using an investment broker or agent. Erman said bypassing the third-party service saved his company more than $4 million in fees.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Opinions

The Best Birthdays Are Multichannel

The Best Birthdays Are Multichannel

The "best" birthday greetings aren't always the ones with the biggest deals.

Making Way for New Marketing Technology: Answers

Making Way for New Marketing Technology: Answers

The VP of marketing had backing from his CMO for new software, but the CIO had a different vision. How should he handle it? See how our readers would tackle ...

Becoming "Resource Full"

Becoming "Resource Full"

Stand out from the competition by being a go-to content source for buyers.