Cornerstone OnDemand Secures New Financing to Accelerate Business Growth
Added funding from top-tier firm Meritech Capital creates significant opportunities for talent management software leader to capture additional market share from competitors.
Cornerstone OnDemand Inc., a leader in on-demand, integrated learning and talent management software and services, today announced it has secured a new $12,700,000 round of financing led by Meritech Capital Partners. Existing investors, including Bessemer Venture Partners and Bay Partners, also participated in the round.
Despite current capital market conditions, the financing was done at a premium to all prior rounds. The added funding enables Cornerstone to pursue new market opportunities, further enhance its service offerings, and continue its aggressive business and financial growth.
"Even though we had considerable cash reserves from our prior round and another cash flow positive quarter at the close of 2008, Cornerstone believes this period of extreme global macroeconomic volatility will create significant opportunities for us to capture additional market share from our competitors," said Adam Miller, President and CEO, Cornerstone OnDemand Inc. "We wanted to have the flexibility to be opportunistic."
Cornerstone has continued to experience rapid growth and remain profitable in spite of the economic downturn, recently announcing record Q4 and FY 2008 financial results and nearly 70 percent growth of its client base. The company also is ranked among the fastest growing companies in North America, including recognition by the Deloitte 2008 Technology Fast 500 and the Inc. 5000.
According to Knowledge Infusion's Center of Excellence, "Not only has Cornerstone remained a fiscally conservative company, it also has built one of the most fully functional and configurable talent management suites on the market. The company excels when it comes to internal talent management and the ability for companies to focus on career development. It also has a strong track record for innovating new products, such as integrating internal social networking into its talent management suite."
Based in Palo Alto, Meritech Capital specializes in late-stage funding for premier information and medical technology companies. In conjunction with the funding, Rob Ward, Managing Director of Meritech Capital, has been named to Cornerstone's board of directors.
"We are excited to add Cornerstone OnDemand to our portfolio of best-of-breed, late-stage technology company investments," said Ward. "The company's healthy financial position highlights the vibrancy of its business and the competency of its executive leadership. We believe Cornerstone's value proposition is even more compelling in this economic crisis, as shifting business conditions and reduced workforces make solutions for managing and developing employees even more critical to a company's bottom line."
Added Miller, "Because of Cornerstone's rapid growth, we were fortunate to have many financing options available to us, even with today's turmoil in the capital markets. We chose Meritech to broaden our global reach with another top-tier partner."
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