A couple of weeks after Microsoft announced its $1.2 billion acquisition of FAST Search & Transfer, enterprise search competitor Endeca is getting a $15 million cash infusion from both Intel Capital and SAP Ventures. This is on top of the $50 million Endeca has already raised in the past few years from Lehman Brothers, Granite Global Ventures, Ampersand Ventures, Bessemer Venture Partners, Venrock Associates and DN Capital.
“In just more than seven years, Endeca went from one customer and modest revenue to 500 customers and $100M-plus in sales. The next target is the elusive $500M milestone,” said Bruce Richardson, chief research officer at AMR Research, in his January 11, 2008 report entitled Endeca Set to Lead the Information Visibility Revolution. “What makes Endeca unique is its ability to provide visibility for everyone that needs it, whether for finding a part or selling to a customer or prospect… It could be years before Endeca faces products comparable to its own.”
“Visibility into enterprise-wide information assets is a key area of interest for customers,” said Jennifer Scholze, Investment Partner at SAP Ventures. “By taking a fundamentally new approach to accessing and analyzing enterprise-wide data, Endeca is poised to disrupt multi-billion dollar markets and is uniquely suited to address the core opportunity of the information economy.”
“No company better understands the importance of enterprise data to today’s information-centric businesses than SAP. Our collaboration will open new doors and accelerate the realization of our vision to arm all knowledge workers with the critical enterprise data they need to inform daily decision making, regardless of source or format,” said Steve Papa, chief executive officer of Endeca. “As an SAP customer and now a key part of their investment portfolio, Endeca is on a favorable path to learn from — and work closely with — the most influential information applications company of our time.”
“Information access platforms play a crucial role in linking vast collections of data,” said Arvind Sodhani, president of Intel Capital. “Our investment in Endeca will further their capabilities by capitalizing on Intel’s next generation multi-core platforms in this market segment.”
“Endeca’s success to date would not have been possible without the innovations Intel has brought to market. Multi-core computing will play one of the greatest enabling roles for adoption of next generation information access technology,” said Steve Papa, CEO of Endeca. “This investment from Intel Capital has the potential to accelerate Endeca’s success in gaining adoption for information access.”
More about Endeca
The Endeca Information Access Platform is a new platform built specifically to address an emerging market that is poised to fundamentally change the way people access and interact with information. The platform is designed to help people explore, analyze, and understand information in ways not possible with search engine, database, and business intelligence solutions. Powered by Endeca’s MDEX Engine™ technology, it unites the ease of search with the analytical power of business intelligence, bringing Endeca’s trademark Guided Navigation® user experience to new classes of applications. As a result, organizations can increase revenue, decrease costs, and streamline operations by helping their customers, employees, and partners answer high-value questions with unprecedented ease and confidence.
The Endeca Information Access Platform aids information-based problem solving across a wide variety of business processes, including eCommerce, marketing-campaign analysis, product design and parts reuse, knowledge management, customer service, and more. To meet highly specific industry and application requirements, Endeca offers a range of market solutions, each designed to accelerate time-to-market and maximize return.
Discovering our name
The company name “Endeca” is derived from the German word “entdecken” meaning “to discover.” Viewed in the context of information integration and navigation, Endeca technology not only allows users to find what they are looking for, but also to discover the possibilities they never knew existed along the way.
Over 500 leading global organizations including ABN AMRO, Boeing, Cox Newspapers, The (US) Defense Intelligence Agency, Dell, Ford Motor Company, Hyatt, IBM, John Deere, The Library of Congress, Texas Instruments, and Walmart.com rely on Endeca to power business-critical applications that increase revenue, reduce costs and streamline operations.
Headquartered in Cambridge, MA, Endeca has operations in North America, Europe and Asia. It has 500 employees and over $100 in sales for the last year. The company was founded in 1999.
About SAP Ventures
Since 1996, SAP Ventures has been investing in companies that offer exciting new technologies and applications. Leveraging years of experience and drawing on a network of powerful business relationships, SAP Ventures helps entrepreneurs and management teams recruit the best people, make the right technology decisions, win new business, and build their own partner networks. The goal of SAP Ventures is to grow businesses that create shareholder value for everyone involved.
About Intel Capital
Intel Capital, Intel’s global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than US$6 billion in approximately 1,000 companies in more than 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2007, Intel Capital invested about US$639 million in 166 deals with approximately 37 percent of funds invested outside the United States.
Interesting information has popped up online while we were researching on the deal for more details. It seems that their product empowers IBM while IBM appears to be developing their own in joined forces with Yahoo!: http://omnifind.ibm.yahoo.net/ & http://omnifind.ibm.yahoo.net/productinfo.php
Other commentaries we have dug up from Web reveal some rumors that Endeca was pretty close to do an IPO last year. The same sources claimed something must be going not very well with the company since they have chosen to go in bed with bigger names in the business and raise VC money rather than going the IPO road.