Software maker secures $4.5M

November 11, 2003

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 business applications.

William Schreiber of Fenwick & West LLP advised Chutney on the funding round.

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 companies.

"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 last month.

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.

  Back to News