Tuesday, December 2, 2008

UTest taps new investor in $5M second round

By Galen Moore

UTest Inc. has secured a $5 million Series B round of funding, the company said. New investor Longworth Venture Partners LP led the round, joined by Eagan Managed Capital LP. Returning investors are the Massachusetts Technology Development Corp. and Mesco Ltd.

The new funding brings Southborough-based software testing company uTest’s total investment to $7.3 million, said CEO and co-founder Doron Reuveni.

“The reason we went and did another round of funding is we felt the market is ripe and the opportunity is significant,” Reuveni said. “That’s the right timing to invest in marketing, invest in brand and invest in sales.”

The company plans to add four employees to its marketing department. Total full-time staff is 12 employees today. That number is expected to grow to 20 by the end of 2009, Reuveni said.

UTest provides an online marketplace for software companies and contract software testers. Companies pay only when testers provide feedback that the company deems useful.

The company has 50 customers as of the end of November, Reuveni said. Local customers include American Well Inc., OwnerIQ Inc. and gazelle.com operator Second Rotation Inc.

Boston-based Longworth will be represented on uTest’s board by partner Peter Roberts. Travis Connors has the board seat for Egan-Managed Capital, also based in Boston. Joel Mesznick has Mesco’s seat, and MTDC has an observer seat on the board, filled by principal Paul Tu.