DotNetNuke Secures $8 Million in Second Round Funding
Date: Monday , March 29, 2010
California based DotNetNuke, owner and maintainer of the open source web application framework, has secured $8 million in the second round of funding, bringing the total funding to $14 million. The round led by UV Partners along with the participation of August Capital and Sierra Ventures, would help the company in accelerating product development and expanding marketing and sales.
The financing follows a banner year for DotNetNuke, which recently signed 500 paying customers, sold over 50,000 add-ons to 15,000 unique customers; and signed up over 70 reseller partners following its commercial launch in February 2009. Commenting on the interest of VCs, Navin Nagiah, President and CEO, DotNetNuke says that the VC interest is primarily driven because of three things; large market, phenomenal and well received product, and excellent business traction.
According to the company, organizations use DotNetNuke’s technology to quickly develop interactive websites, intranets, extranets and web applications. Nagiah says, “Any company with greater than 20 employees that needs a feature rich website is a prospective user of our software.”
Having a market size of around $5 billion in four years of its inception, DotNetNuke mainly faces the competition from Drupal, which is one of the leading web content management (WCM) platforms for PHP. “We are doing the same thing in the Microsoft world that Joomla and Drupal have done in PHP. We are by far the largest and most successful open source WCM platform in the Microsoft ecosystem,” says Nagiah.
With an employee base of 50, DotNetNuke’s online marketplace, Snowcovered.com, completed nearly 40,000 transactions of third-party software extensions to almost 15,000 customers in 2009. Now, the company is planning to focus on delivering ‘instant-on’ functionality to its websites. Nagiah says, “We will integrate the modules and skins in our marketplace, Snowcovered.com, to the DotNetNuke web content management platform to enable users to add new functionality dynamically and in real-time.”