RealTime IT News

Xevo Raises $20M for Expansion

Last week, Xevo hired Michael Dering as its new CEO. This week, the Marlborough, Mass., maker of service management software has given him the resources to do his job.

Xevo has raised $20 million in third-round financing to expand internationally. Advanced Technology Ventures (ATV) and Morgenthaler were lead backers. Prism Venture Partners and Catalyst Health and Technology Partners also participated.

Investors and analysts see opportunity in Xevo's model and market. An IDC report (written in mid-2001) pegged the software-as-service industry at nearly $24 billion in 2005.

"Deployment of applications is cumbersome and costly with traditional methods," Morgenthaler's Paul Levine said. "With Xevo, service providers such as global telcos and ASPs, can get thousands of users up and running at a fraction of the time and cost. They can also track usage, automate billing and innovate flexible service pricing and packaging."

Levine also said the privately held company is poised to announce customer deals with large telco carriers. He also pointed to partnerships with Microsoft and Compaq as key strengths.

"With this round of funding, Xevo is well positioned to respond to the rigorous demands of telecommunications carriers worldwide," Dering said. "These carriers are seeking proven infrastructure solutions that will enable them to quickly realize profitability when incorporating the software-as-services model into their service portfolios."