RealTime IT News

IntraLinks Receives $40 Million to Provide Online Workspace

New York-based IntraLinks, Inc. secured $40 million in funding from Rho Ventures and investment afffiliates of Soros Private Equity Partners.

The company, which hooks up a neutral online space for users to collaborate and share information with co-workers, said the round of funding also included investments from Emigrant Capital and Lago Ventures.

Previous investors Reuters, Patricof & Co. Ventures and previous investor Euclid Partners also participated in the round. The meaning of such a substantial a round of funding in the current market was not lost on the company or its investors, who decided to fund the company based on its list of clients.

"(IntraLink's) list of blue-chip clients, and the fact that it continues to exceed expectations, convinced us to get involved," said Habib Kairouz, managing director at Rho Ventures. "Old economy or new economy, in the end, it's all about business results."

IntraLinks filed for an initial public offering in July 1999, but withdrew the registration in August 2000, citing market concerns.

In late January, the company reported that 100 companies, including banks, pharmaceutical cos. and law firms, had signed subscription agreements. The agreements brought the closely-held company's total 2000 revenue to $13.2 million, which compares to $4.1 million raised the same time in 1999.

"The communities we serve continue to embrace our services to streamline communication and collaboration with their external partners and clients," said James Dougherty, president and CEO of IntraLinks. The company has clients in 92 countries.

The firm, founded in 1996, said it has brought technical development in-house, improved customer service and upgraded its hosting services, while confining staffing increases to a less than ten percent ramp-up. The company has 180 employees.

IntraLinks client list includes AstraZeneca Pharmaceuticals LP; Bank of America; Chase Manhattan Bank; FDIC; Chiron Corporation; Cravath, Swaine & Moore; Ernst & Young; Hogan & Hartson LLP; ING Barings; International Finance Corporation (World Bank Group); KPMG and the Prudential Insurance Company of America.

The company has additional offices in Boston, London and San Francisco.