Deal Radar 2008: Encover
Check other articles in the series...Encover helps manufacturers and their channel partners manage, market and sell service contracts and their subscription agreements. It provides companies with visibility in service contract opportunities and tools for channel partners to sell service contracts.
Founded by Sridhar Krishnan, Encover is headquartered in Mountain View, California. It currently has just over 100 employees. The CEO is Chip Overstreet, and experienced Valley guy.
In its third round of financing which took place in May 2006, Encover raised $8 million from Chicago based Baird Venture Partners, Sigma Partners and Doll Capital Management. In May 2004, Encover received $11 million in venture capital funds led by Doll Capital alongside previous investor Sigma Partners. In November 2002, the company received $6 million from Sigma Partners, Imlay Investments and their other seed investors. The total financing in the company is $25 million.
In May 2004, Encover signed a global partnership with TATA Consultancy Services in order to expand its service delivery capabilities. The companies joined to deliver solutions that convert service contract sales to profit centers for hi-tech manufactures and their channel partners.
Two months back Encover released ChESS MV a multi-vendor service contract marketing and sales solution to supply their end users with a comprehensive analysis of their hardware and software assets. It also provides an intuitive web based portal to review, modify and purchase service contracts.
The company also boasts a 300% year on year customer growth. Some of Encover’s customers are Cisco, Juniper Networks and Eastman Kodak. Another customer, SonicWALL reported a 30% increase in subscription renewal rates due to Encover’s technology. Sales for the year ending June 2007 were estimated to be $12.7 million. Encover’s main competitors include Astea International, Model N and Rainmaker Systems. [See my interview with ModelN’s CEO Zack Rinat. ModelN defines the segment as Revenue Management.]
The company was named a “Top 100 Private Company” by AlwaysOn for two consecutive years. The list is made up of the tech sector’s most innovative and exciting firms with significant market potential.
What I really like in Encover (and ModelN) is that it is focused on a hard ROI enterprise business problem. Yes, it is a niche, but a solid, crisply defined niche. Thus, the leaders in the segment are doing very well, monetizing their offering.
If you think enterprise software is dead, think again!
This segment is part 51 in a running series PayCycle →
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