Print
Email
Print Edition Stories
MHT reporter Efrain Viscarolasaga on NECN: Green tech brings jobs back to Mass.
How is the economic crisis affecting tech companies?
Investors have supplied Aras Corp. with nearly $1.2 million in new cash, according to a November U.S. Securities and Exchange Commission filing, and the Andover-based open-source product life cycle management software provider is using it to establish beachheads in Europe, the Middle East and Africa.
So far, Aras has hired employees and set up its EMEA headquarters in Solothurn, a suburb of Zurich, Switzerland, said president and founder Peter Schroer. The office has already signed 15 channel partners and two software service contracts, including the German auto supply chain company Freudenberg & Co. KG.
“This was a great time for us to go international,” Schroer said. “The U.S. economy is a little bit slow, and with this web marketing model, we’ve got partners in Australia, China, Japan. How could you have ever afforded that kind of worldwide marketing before?”
European economies are slowing, too, but not as badly as the U.S., he said. Companies are looking to save money, which is good news for Aras, which does not charge for software licenses. The company switched to the open-source model in January 2007. Since then, Schroer said, Aras has seen two years of 60-plus-percent growth in revenue and projects 70 percent revenue growth this year. The privately held company is cash flow positive, Schroer said, adding if growth continues apace, Aras may look to make an initial public stock offering in 2010.
Aras’ last round of venture capital funding was its second. A 2004 round worth $12.25 million that brought the company’s funding to about $17 million, Schroer said. Venture capital investors include Oak Investment Partners, Greylock Partners and Matrix Partners. The company launched in March 2000 with angel backing.
Since 2004, Aras has gathered about $3 million in three rounds of funding from eCoast Angels and Boston Harbor Angels, Schroer said. The latest round, from unnamed investors in Europe, brings Aras’ total funding to $21.17 million.
RSS Feeds
Comments
Please Login/Register to post comments.
No comments have been added or approved.