This week, ASP infrastructure Chapter 2 e-services Inc. announced it secured $9.5 million in its first round of funding.
According to Ritu Raj, chief executive officer and founder, venture capital firm Convergence Partners acted as lead investor and contributed $5 million to the funding. Other investors included Sand Hill Capital with $2 million and Hewlett-Packard with half a million. The remaining $2 million came from a group of individual investors.
Raj also told ASP-News that Chapter 2 raised $18 million of credit, based on the funding round.
The company intends to use the funding to expand its technology infrastructure, grow its internal operations in key areas such as information technology and marketing and expand its services internationally.
“30 percent of the money raised will be dedicated towards salaries,” he explained. “Some of the remainder will help support our recently developed Network Operating Center (NOC).
Chapter 2’s NOC also monitors and manages applications.
According to Raj, Chapter 2 e-services Inc. provides ASPs and business applications with a complete platform on which they can host.
“We provide complete end-to-end advanced managed services and provide affordable and scalable solutions, freeing companies for all operating expenses,” Raj said.
ASP-News has learned that the company will begin its second round of funding by the end of this summer, anticipating between $40 and $50 million.
“That will give us operating expenses for the entire year of 2001 and aide in our geography growth plan,” Raj said.
Expanding more on the growth plan, Raj told ASP-News that Chapter 2 intends to become a global company very quickly.
“We plan to have our operating centers established in New York this fall, in London by the end of this year and in Japan by this time next year,” he said.
He also said that all three companies involved in the first round have already committed for the planned second round of funding. The company expects to file for its third round about the same time next year.
In related company news, Russ Irwin, general partner, Convergence Partners, has joined Chapter 2’s Board of Directors.
“Russ brings a level of strategic and real operating vision to the company,” Raj said.
Looking ahead at the ASP market, Raj expects that by 2005 all services will be delivered over the Internet. “Shortly after this, virtual communities and workplaces will become very common,” he said. “It all drives the ASP Model to become the model of choice.”