Klir Technologies plans to announce today that it has raised $8.7 million in venture capital to support the sale of software that helps...
Klir Technologies plans to announce today that it has raised $8.7 million in venture capital to support the sale of software that helps companies track technology investments.
The Seattle company raised the money in the first few months of the year, a large step forward compared with how it nursed $3.2 million from angel investors over its first four years, while founders lived off of second mortgages and worked out of their homes, said Chief Executive James Maiocco.
“We kept cost controls tight and focused our energies on hardcore development,” he said. “It was very difficult for startups in 2000-03. I’m not trying to paint any type of rosy picture. Very few companies were able to get started and survive.”
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Investors in the round include Ignition Partners, MK Capital and Fluke Venture Partners.
Klir develops subscription-based software that helps companies with $500 million to $1 billion in sales analyze and track their technology investments.
Maiocco said that unlike a cellphone bill, where consumers can easily see if they have a plan with too few or too many minutes, information-technology purchases aren’t as transparent.
“Many companies have made significant investments in IT but have a lack of understanding where they are paying off,” he said.
Rather than sell directly to customers, Klir partners with companies that manage the IT-purchasing process for companies. That approach is key because the partner already knows much of the information that needs to be loaded into the Klir database.
Currently, Klir has eight partners, eight paying clients and 15 trials. It has 25 employees and contractors.
In one of those trials, the benefit of using the software became quickly apparent, said Bryan Smoltz, Klir’s director of marketing. After installing it, the company learned it had overspent by 400 percent on equipment for its online presence, whereas its corporate servers were nearly at capacity.
“Their investments were based on gut instinct,” Smoltz said. “They’d well overspent for online environment, but will soon run into corporate network issues.”
The price of the software ranges between $500 and $10,000 a month, depending on company size.
Tricia Duryee: 206-464-3283
Klir Technologies CEO