Syndera Raises $5 Million Series A, Will Launch Product This Year

By Lizbeth Scordo
April 14, 2003

MONTEREY, CALIF. -- After closing a $5-million Series A round earlier this year, Syndera, a provider of application syndication software, plans to launch its first product at the end of this year, Prashant Gupta, Syndera's founder and CEO, told VentureWire.

The company has secured deals with what it calls "design partners," companies in different vertical markets that are contributing to the product development and will become its initial customers.

"It's a slightly different approach," said Mr. Gupta. "We are engaging customers, design partners, at a much earlier stage because we want to solve real problems, instead of saying 'Here is this piece of cool technology looking for a problem.'"

Syndera has not yet released many details on its product, but says it is focused on combining open standards and next-generation technology to change the way enterprises build, integrate, and maintain applications. The company will target Fortune 1000 and 2000 customers, said Mr. Gupta.

"Syndera is trying to solve a $90-billion problem that's spent by the largest corporations on custom services to manage and integrate and transport data," said Erik Lassila, managing director with Clearstone Ventures and a Syndera board member.

According to Mr. Gupta, the need for its technology is greater than ever, especially given the current economic climate. "CIOs in this environment are not getting new dollars anymore," he said. "What we're doing is looking at the problems and the holes in the current approaches. This problem couldn't have been solved five years ago. The problem definition and the technology just wasn't there."

Syndera closed its Series A round from Onset Ventures and Clearstone Venture Partners in February to accelerate its product development and expand its core business operations, including sales and marketing.

According to Mr. Gupta, Syndera will most likely start raising a Series B round in about nine months, but has not decided how much it will target or if it will go out for subsequent rounds. The current business plan requires about $20 million, including the $5 million it has already received, he said.

Prior to founding Syndera, Mr. Gupta founded and served as president and CEO of Tivre. He has also served as chief architect of Sybase and chief technology officer of CrossWorlds Software, an enterprise application integration firm.

Syndera's board includes Mr. Gupta, Mr. Lassila, and Mark Hilderbrand, general partner with Onset Ventures.

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