Capital Investment from BA Venture Partners, CXO Media, Dain Rauscher Wessels, Dell Ventures, Intel 64 Fund, and Sevin Rosen
Tonic Software - the leading provider of innovative Web Applications Management (WAM) software with UK-based European Headquarters - has secured £19 million ($28 million) in second-round funding from leading business and technology investors. This capital helps Tonic accelerate product development and invest in sales and marketing programmes to speed market adoption of Tonic technology.
BA Venture Partners, a $500 million venture capital partnership funded by Bank of America, leads the second-round of Tonic funding. Sevin Rosen, who led the first-round funding for Tonic, is reinvesting in the second-round. Additional investors include Dell Ventures, the strategic investment arm of Dell Computer Corporation; the Intel 64 Fund, an equity fund that invests in emerging technologies for next-generation servers and workstations utilising Intel’s Itanium architecture; Dain Rauscher Wessels, a knowledge-driven equity capital markets group; and CXO Media, a subsidiary of IDG.
BA Venture Partners’ Managing Director, Kate Mitchell, will serve on Tonic’s Board of Directors. Jackie Kimzey of Sevin Rosen, Steve Marcie, Tonic’s CTO, and Brian Phillips, CEO of Tonic, will remain on Tonic’s board.
Tony Budd, Tonic’s General Manager for Europe, Middle East and Africa (EMEA), enthused, "These funds will help facilitate immediate expansion in the UK with the recruitment of additional sales and technical support professionals. It will also fund the establishment of a second European base in Germany and the planned rapid development of Tonic’s EMEA distributor network to co-inside with the continued development of a product that fits their needs exactly."
Tonic’s Web Applications Management software ensures web application availability and end-to-end performance, improves the online user experience and helps companies to optimise the return on their e-business investment. Industry analysts estimate the emerging WAM market segment will generate £0.8 billion in revenues by 2002 (Source: Bear Stearns & Co. Inc.).
"Tonic Software has laid the critical foundation to succeed in the WAM market", said Kate Mitchell, Managing Director, BA Venture Partners. "Tonic’s experienced management team has delivered an innovative solution to a pervasive e-business problem. Important customers are responding to the clear competitive advantage of Tonic solutions, and that response enables BA Venture Partners to justify a significant investment in Tonic."
"As the substance of business moves to the web, more and more applications will require management in a dynamic environment", said Manish Mehta, Principal at Dell Ventures. "Having developed www.dell.com into one of the leading e-commerce sites on the web, Dell fundamentally understands the value that Tonic Software’s web applications management software can provide to enterprise customers."
"Success in e-business is highly dependent on a company’s ability to continuously deliver high-quality applications that result in a positive user experience", said Dick Heiman, Research Director at IDC. "Tonic Software’s unique platform approach to e-business application quality assurance affords the opportunity for rapid growth in this emerging market space."
For further information on Tonic Software, please contact
Tony Budd, General Manager,
Tonic Software, Pinewood,
Chineham Business Park,
England, RG24 8AL.
Tel: (0)1256 698 048
Fax: (0)1256 698 584
For further press information or electronic versions of this release please contact
John Haynes, Livewire Public Relations,
13 Uxbridge Road, Kingston Upon Thames,
Surrey, KT1 2LH
Tel: +44(0)20 8547 3418
Fax: +44(0)20 8547 3419
Tonic, Tonic Index, and Guaranteeing Your Net Works are registered trademarks of Tonic Software, Inc. in the United States and the United Kingdom. All other product and company names mentioned are trademarks or registered trademarks of their respective holders.
About Tonic Software - Tonic is the leading Web Applications Management (WAM) provider offering a platform product designed to manage the entire life cycle of a web application, from development through to final production. Tonic’s scalability assessment load-tests a site prior to going live; continuous monitoring ensures availability; and root-cause analysis and automated error correction ensure ongoing problems are detected, diagnosed and addressed without repetitive human intervention. Tonic’s WAM software ensures web application availability, content and functional integrity, and end-to-end performance, improving the online user experience, and enabling companies to optimise the return on their e-business investment.
Founded in 1999, Tonic secured second-round funding from BA Venture Partners, CXO Media, Dain Rauscher Wessells, Dell Ventures, Intel 64 Fund, and Sevin Rosen. Tonic is headquartered in Austin, Texas, with seven offices throughout the United States including Boston, New York, Chicago, Dallas, San Diego, and San Francisco. The company established its European headquarters in Basingstoke, England. For more information, please visit Tonic at http://www.tonic.com
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