Dublin-based software company Norkom has raised $3 million (€2.9 million) in a second round of funding from Trinity Venture Capital.
The move is part of Norkom's plan to raise an additional $10 million in equity capital this year. The company is targeting sales of £50 million (€64 million) by the end of 2002 and it is understood that it expects to be in a position to consider a public flotation by this time next year.
The financing comes just six months after Trinity invested $2 million for a 10 per cent stake in Norkom valuing the company at that time at around $20 million.
According to Norkom this latest investment increases the company's valuation to nearly $47 million, with Trinity's holding increased to 18.7 per cent when Norkom's growth and market growth rates are taken into consideration.
Norkom is specialising in customer relationship management (CRM) software, a market estimated by research company Dataquest to be worth $21 billion by 2003. Norkom is targeting the analytical and collaborative sector of this market which is estimated to grow to $7.5 billion by 2003.
The company is now on target to generate revenues of $7 million by March. By next year it estimates this figure will grow to more than $20 million.
In tandem with the investment announcement, Norkom has also strengthened its management board with the appointment of Mr Shane Reihill as a non-executive director.
Mr Reihill is chairman of Trinity Venture Capital and Hibernia Capital Partners. It is expected his expertise in investment banking and venture capital funding will assist Norkom in pursuing its aggressive funding programme.
Norkom employs 120 people but is recruiting further. Norkom was named as New Company of the Year in the recent 1999 Irish Software Association Awards.
The latest round of funding will be used to position Norkom as a leading market player in Europe, as well as building up its US presence. The company has offices in Ireland, UK and Benelux and opened a US office in Boston last month.
Norkom's software and services are used to provide companies with comprehensive updated customer information.
Mr John Tracey, chief executive officer of Trinity Venture Capital, said that Norkom's rate of growth for a start-up had been phenomenal. "Its approach in terms of ambition, management team, products and services mirrors successful Silicon Valley companies," he added.
