Monday, September 8, 2008

Kodiak, ATV back ChannelAdvisor; job cuts to follow

Kodiak Venture Partners and Advanced Technology Ventures participated in a $20 million Series D round of funding for North Carolina-based ChannelAdvisor Corp.

ChannelAdvisor, a provider of e-commerce channel management solutions, also plans to implement a restructuring plan to streamline operations and accelerate the company’s path to profitability. The plan includes laying off 70 of its 350 employees.

Kodiak and ATV, both of which operate offices in Waltham, were joined in the deal by New Enterprise Associates, eBay Inc. (Nasdaq: EBAY) and Southern Capitol Ventures, company officials said.

During the past year, ChannelAdvisor’s revenue has grown more than 55 percent, and gross merchandise value has grown more than 45 percent. ChannelAdvisor makes software that enables online retailers to manage sales across multiple e-commerce sites such as eBay, Amazon.com and Overstock.com. During 2007, ChannelAdvisor managed more than $2.1 billion in gross merchandise value on behalf of its customers, officials said.

Kodiak Ventures, founded in 1999, has raised three funds totaling $676 million. In 2004, the firm closed its largest and current fund at $316 million. ATV, founded in 1979, operates with more than $1.6 billion in capital under management. In December 2007, the firm closed its eighth fund, which totaled $303 million. Its previous fund, which totaled $800 million, closed in 2001. ATV invests in communications, IT infrastructure, software and services, consumer technology, biopharmaceuticals, medical devices and clean technology.