Intacct Scores $10 Million of First Round Funding
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Intacct Corporation yesterday announced it has received a $10 million funding commitment from software VC firm Hummer Windblad Venture Partners . As part of the deal, Hummer Winblad founder Ann Winblad will join Intacct's board of directors.
Intacct plans to launch its pioneering Web-based accounting services, which are targeted to the needs of mid-size companies, around June 1. It currently claims more than 120 active company-customers using the system on a trial basis.
Intacct founder and CEO David Thomas told ASP-News that the company has a huge potential market. There are 8 million mid-size companies (those with 100 to 1000 employees), 64 percent of which are Web enabled; many of these are using inadequate accounting tools. "At least an additional 1.2 million smaller companies are currently outgrowing QuickBooks, and will be looking for more sophisticated solutions," Thomas said.
According to Thomas, a typical accounting investment for a mid-size firm with an in-house multi-user client/server system, such as Solomon or Great Plains, is in the high five- to mid-six-figure range. Intacct's basic client charge will be about $50 per month.
Intacct will build only the "accounting hub," according to Thomas. That is, General Legder, Accounts Payable, Accounts Receivable, Inventory, and a Human Resources "stub," that will interface with existing systems. This core functionality is built around an XML interface.
Customization and adaptability will be achieved through a library of vertical business and accounting applications that will be created by developer-partners.
In addition to targeting end-user company customers, Intacct has a program in place to co-brand services for independent CPAs.