Contact Network Corporation Raises $1.6M

Geoff Hyatt forwarded me this press release below, which isn’t even on Contact Network’s own home page, reporting that Contact Network raised $1.6M. When we earlier profiled Contact Network, we reported that:

As of March 2004, Contact Network has 16 corporate customers and 24,500 paying seats. The Boston Consulting Group and Dartmouth’s Tuck School of Business are among their clients.
….As of March 2004, Contact Network’s revenue run rate is about $1.5 million annually.

Combine this news with Yahoo!’s launch of Yahoo! 360 and Yahoo!’s long-awaited acquisition of Flickr, and it’s clear just how many investing opportunities there are in social software.

FOR IMMEDIATE RELEASE

Contact:
Lisa Allocca
Red Javelin Communications, Inc.
(978) 470-2227
lisa@redjavelin.com
www.redjavelin.com

Contact Networks Raises $1.6M in First Round Financing

Private Investors include Search Industry Veterans

Boston, MA – March 21, 2005 – Contact Networks (www.contactnetworks.com), a leading next generation enterprise search company, announced today the closing of its Series A funding. The financing round came from individual and institutional investors and includes the founders and management of the successful search technologies TripAdvisor (acquired by Interactive Corp, NASDAQ:IACI) and Direct Hit (acquired by AskJeeves, NASDAQ:ASKJ). The funding will be used to expand the sales, marketing, and support teams and to accelerate Contact Networks’ ability to enter new markets.

Contact Networks provides an innovative and specialized form of search called Enterprise Relationship Search that helps employees answer the common question “who knows whom…” in the corporate setting. Relationships win business and Contact Networks finds important business relationships that already exist within a company. It helps people take advantage of friendships, enabling them to see hidden connections two or three degrees away in order to find new clients or establish new sales.

“Enterprise Relationship Search is emerging as a business application that drives revenue growth,” said Geoffrey Hyatt, CEO of Contact Networks. “If you are responsible for sales, client development or business development, you want more and better relationships with your prospects. Discovering a colleague down the hall or across the country who can make that initial introduction helps to access and win that account.”

Search Industry Veterans Invest

Additionally, investor Langley Steinert, Chairman and co-founder of TripAdvisor, will join the Board of Advisors at Contact Networks. Prior to co-founding TripAdvisor, Steinert was VP of Marketing and Business Development at the Internet commerce tools company Viaweb (acquired by Yahoo!). Additional investors include Stephen Kaufer, CEO and co-founder of TripAdvisor, David Parker, CEO of DigitalAdvisor and VP of Business Development of DirectHit and several institutional investors.

“Enterprise search is a critical need in the corporate world. While consumers turn to Google and Yahoo for answers from the web, corporate employees also want to mine the useful resources of their own company,” remarked investor Langley Steinert. “For sales and business development, it is critical for employees to leverage the existing relationships their colleagues already possess. Closing just one or two additional deals solidifies the ROI for an application like Contact Networks.”


About Contact Networks

Contact Networks is a leading provider of next generation enterprise search solutions. The application enables an organization to efficiently access and utilize the relationships that employees have to outside contacts and companies. Sales and client development teams discover introductions to target accounts that help win the deal. For more information about Boston-based Contact Networks, visit www.contactnetworks.com or call 617.305.7961.

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