MarketSoft Spends $50G to Gain $45MMarketSoft 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.