SpringCM, which has been doing hosted content management since 2005, long before we called it The Cloud, announced today it has received $18M in venture funding. CEO Greg Buchholz told me he plans to use most of the money to expand his sales and marketing department.
The funding for the Chicago-based company will come from Fort Worth, Texas-based Goff Capital, Square 1 Bank and Foundation Capital, which contributed to its first round of venture funding in September, 2010.
This is the third time SpringCM has sought funding: $10M in 2010, $6M last November and this new round for a total of $34M to date.
CEO Greg Buchholz says as interest in cloud products has ramped up over the last 12 months, he sees this as a perfect time to increase their funding and build a bigger presence for the midwestern company in Silicon Valley. He said the company, which opened a small office prior to this announcement currently staffed with 5 employees, plans to increase that to 20 by the end of this calendar year.
“We don’t have presence of Silicon Valley companies, but we want to change that. We are going to primarily use the proceeds [of this funding round] to amp up sales and marketing,” Buchholz said.
Just last week, the company announced two new products that embed content management functionality inside Salesforce.com where sales people are doing their work. And Buchholz says they are increasingly finding success as a SFDC partner. In fact, half of all the company’s business now comes from Salesforce, as does 75 percent of new business currently in the pipeline.
Ben Kiker, SpringCM’s CMO pointed out solving the content management problem takes hard work, and that in spite of all SFDC’s talent, it has had difficulty delivering basic content management services to its customers. SpringCM is filling that need and it’s been seeing success.
Buchholz says the company currently has 400 paying customers and they hope this money will help them get the word out about their company and its products by increasing its sales and marketing clout.