Article

Business SoftwareProvider Tenrox Pulls In $3.9M In Series A
DowJones VentureWireProfessional, November 1, 2005

By: Clancy Nolan

Tenrox Inc., whose software is used fortimesheet management, expense reporting andother business processes, has pulled inC$4.6 million ($3.9 million) in venturefinancing.

Longueuil, Quebec-based venture firm Novacapwas the sole investor in the Series A round,which will be used for marketing, sales andproduct development. The company beganfund-raising in early 2004, and closed onthe money last week. Chief Executive RudolkMelik declined to discuss the valuationafter the round.

Tenrox was originally formed as aMontreal-based consultancy in 1995, saidMelik, and shed its consulting arm in 1999to focus exclusively on software andservices. The company, which later moved itsexecutive offices to Pasadena, Calif., sellsits suite of management software directlyand through resellers and partners.

The new financing will be used to expandTenrox's 95-person staff by as much as 30%,said Melik. Tenrox will also expand itsregional sales and services presence in theMidwest and potentially in the Europe. Thecompany's research and developmentoperations are based in Montreal.

As a result of the financing, Novacap vicepresidents Alain Belanger and PascalTremblay will join Melik and Chief OperatingOfficer Ara Israilian on the four memberboard.

Melik said that Tenrox has no immediateplans to raise additional financing. Thecompany, which has been profitable sinceinception, is targeting more than $6 millionin revenue for 2005.

Tenrox's customers include Caterpillar Inc.,Corning Cable Systems LLC, Invensys plc,Pioneer Natural Resources, State of Wyoming,University of Michigan, Visa International,Fisher Scientific International Inc., Merck& Co. and Wyeth.