Business software developer Chutney Technologies Inc. announced Wednesday,
Nov. 19, it has secured $4.5 million in its latest financing round.
Clearstone Venture Partners, with offices in Menlo Park and Santa Monica,
Calif., led the round. Other investors included Kleiner Perkins Caufield
& Byers, Sevin Rosen Funds and certain individuals. As part of this
investment, Chutney Technologies also added Sumant Mandal, a principal
at Clearstone, as a board member.
"We saw a pretty interesting opportunity to accelerate the early
attraction they've been getting with their Apptimizer product," said
Sevin Rosen partner Nick Sturiale, referring to one of the company's main
William Schreiber of Fenwick & West LLP advised Chutney on the funding
The Redwood City, Calif., company, which merged about three months ago
with Adeosoft Inc. a seed project in the back-office infrastructure
arena backed by Sevin Rosen, Kleiner Perkins and Dot Edu Ventures, an
angel fund formed by several professors at Stanford University
said it will use the new capital to further expand its product suite and
the operations necessary to support those products.
Chutney develops products that help companies conducting business over
the Internet to improve site performance for its end customers. Chutney's
clients include financial services companies, Internet retailers and travel
"With this funding, we are continuing to invest in developing innovative
products that improve application scalability and reliability and ultimately
enable our customers to better serve their own online customers,"
said Stephen Turner, Chutney's president and CEO, in a statement.
Turner, a former executive at Allegis Corp. and SAP America, joined Chutney
Chutney, formerly based in Atlanta, raised $7.5 million in June 2001
from Atlanta venture firm Live Oak Seed Capital, Ravenswood Capital Partners
and LiveOak Equity Partners. Ravenswood and Live Oak also led the company's
first round, according to a press release issued that month.
Sturiale said an exit strategy for Chutney has yet to be determined.
"Our expectation is to build a business; whether we take it public
or it gets acquired is way out in the future," he said.