This week, I had a chance to talk to Michael Braun, a veteran of the tech world. Back in 1981, he helped to launch the original IBM (NYSE: IBM) PC. He has also been the CEO of three Silicon Valley companies. His latest gig is the CEO of Intacct, which develops on-demand financial management systems for small and midsize businesses. It has about 2,000 customers so far.
While on board for only five months, Braun has taken swift action. He has retained key managers and board members. Moreover, he got $14 million in a venture capital round. The investors include Sigma Partners, Sutter Hill Ventures, and Emergence Capital Partners. Emergence also invested in Salesforce.com (NYSE: CRM), which is the premier on-demand company.
"The venture round was fairly quick," said Braun. "The investors realize the big market opportunity in providing financial applications. We are allowing QuickBooks' users to graduate from entry-level accounting."
Intacct's applications have proved to be extremely sticky, with a retention rate of 99%. Says Braun, "With on-demand, we are seeing a major platform shift. If you look at the history of these kinds of changes, it's often the new players that dominate the markets. And, we are also in one of the biggest categories of business software."
To see other recent venture capital fundings, click here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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