Thursday, September 04, 2008

ChannelAdvisor Secures $20 Million in Funding!

From the announcement:

ChannelAdvisor, the leading provider of e-commerce channel management solutions, today announced it has received an additional $20 million in funding to accelerate its growth. The funding round was led by New Enterprise Associates (NEA) with participation from current ChannelAdvisor investors Advanced Technology Ventures, Kodiak Venture Partners, eBay and Southern Capitol Ventures.

ChannelAdvisor has grown rapidly over the last two years, both organically and via two material acquisitions, and has strengthened its leadership position in the e-commerce channel management space,” says Scot Wingo, CEO of ChannelAdvisor.
 
The company plans on implementing a restructuring plan that will both streamline operations and accelerate the company's path to profitability.

“With the additional financing and restructuring of the company, we are excited about accelerating our path to profitability. We have reached not only a revenue scale that very few Software-as-a-Service companies have achieved, but also outstanding growth and profitability metrics.”

The following ChannelAdvisor leaders will take on expanded roles as part of the restructuring:
  • David Spitz, Vice President of Operations, is responsible for global products, services, and finance operations.
  • Michael Jones, Vice President of Business Development, Marketing and Strategic Partnerships, currently leads ChannelAdvisor’s global marketing, business development, corporate development and acquisition strategies. Jones will be expanding his role to include global sales and revenue responsibilities.
  • Scott Alridge, Vice President and General Counsel, will be expanding his role to include human resources operations.
I've known Scot and his team for many years and I want to congratulate them on another successful round of financing as they fine-tune their business in this challenging environment.

Just my 15%

21 comments:

Scott Pooler said...

Great Scoop Randy

You get all the best information!

Jack Nicholsen playing the Joker - "Where does he get all those Fabulous toys? "

From my observations a little streamlining at ChannelAdvisor could be a great thing. We all know as long as Scot Wingo is at the helm, it will be smooth sailing! Congrats Scot!

Anonymous said...

This story is being reported 2 VERY different ways.

Is it congrats or smokescreening?

Is it restructuring or layoffing?

Anonymous said...

Randy,
Doesn't the new rule of no third party checkout destroy the CA business model? Or will they be an exception? With this trouble, why would they get any VC monies?

Anonymous said...

How much money has CA received in total? Isn't it something like $100 million? How will that ever be considered a VC success?

Anonymous said...

Maybe they can afford to higher staff to help customers now. We were with CA for over a year and they have horrible customer service. They have some good points but overall not a very good solution.

Hector Duhart said...

$20 Million more. For What?

Unless eBay is hiding something, there's no reason to continue with this venture, external checkouts are something form the past.

Anonymous said...

Is this a good thing or is eBay propping up a company that is horribly managed? Use some common sense - the usually vocal Wingo has been as quiet as Marcel Marceau lately. Right now, Scot wouldn't say crap about eBay if he had a mouthful. He needs this cash infusion, because he burns through money like Sharon Stone in Casino.

God, you and Pooler are gullible Wingo toadies. You'd better remove your faces from the region where Wingo expels his information, otherwise you're going to end up with a bad case of Pink-Eye...

Anonymous said...

Layoffs, borrowing more money, re-structure and "accelerating to profitability" sounds like trouble to me.

I was surprised to see they are still not profitable. If I am correct, they get 1-2% cut of the final sales.

Personally I don’t like any third party system. You will get locked in. It will be very difficult if not impossible to get out if you are not happy with the operation for any reason.

Anonymous said...

Agreed 100% CA's acquistion of Marketworks has been an absolute disaster so far. Essentially, they have let the MW brand die through horrible customer service and a lack of staying on top of the eBay changes.

My advice to any serious seller, ANY serious volume seller, would be to wean yourself off of CA, just like you have with eBay.

It really does not take much time, money, or effort to develop your own system for things. The problem is, CA is like the eBay crack - once you get hooked, it can be very difficult to let go.

Anonymous said...

What is a "channel management solution?" It sounds important.

Anonymous said...

Company is full of bullshitters who basically do very little.

Wingo works hard., 90% of the others should be replaced almost immediately by cheaper outsourced labor.

Anonymous said...

No software company should need to raise close to $100 million during it's start up phase. Where did all the cash go? Channeladvisor is no Google. Wingo is a latter day PT Barnum, spinning his yarns and taking $$$$$$ from the VC's while innocent ex-employees sucked into his web struggle to pay for healthcare and get back on their feet. This guy is a legend in his own mind.

Anonymous said...

Hey, folks. Let's not get nasty. Wingo is a brilliant guy, I'm convinced of that. The real challenge for a visionary like him is for him to hire smart people who can execute his vision-- that's what nurturing a start-up into a real company is all about. I've been to Catalyst the last 2 years, and am always impressed with Scot. But everyone else in his company always struck me as either lucky to be there or mediocre; don't get me wrong, they were all pleasant. But not people who had the same passion, drive, and savvy of Scot. He can only carry a company that size on his back for so long.

Anonymous said...

CA employees have a chip on their shoulder it seems, but there are a few gems and Wingo of course is one of them. Also Jeremy over at MW is extremely dedicated, smart, and passionate.

Tony P. said...

What Ina Steiner terms, Operation Catalog - the big retail boys are comin' to ebay, with deals like the kind that Buy.com received.

http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/9/1220750976.html

"Third-party vendors will work with these sellers to get them onto the eBay platform - no small feat given the quantity of product SKUs in their catalogs."


I wonder which 'Third-party vendors' that may be? Oh... I see.

Man, talk about yer ulterior motive!

Anonymous said...

As somebody in the "know" I can confirm that Channel Advisor, exceeded budgets for expenditure last year and also did not generate the revenue that was hoped for. Perhaps this has something to do with the fact that the staff go to work in shorts and t-shirts and sit round treating the place like a social club. Personally the technology is reasonable but good technology is nothing without good people to support it and unfortunately the lack of discipline in the company means that customer service and support will always be lacklustre. For those of you WIngo lovers out there discipline comes from the top down.

Anonymous said...

I had a lot of trust in the company. I worked hard, did my job. People around me goofed off and sucked up to MJ or Spitz, and were in the "in" crowd. Scot loved to see chaos and never seemed to call order to anything. Yeah, all 3 won their awards as best dudes under 40 in the triangle, but in hindsight, I wasted 2 years of my life to those goofballs while they went about winning meaningless personal awards instead of managing what should have been a good business. I left some good friendships behind, and I hope they don't get burned in the next layoff. BTW, paying COBRA until I can land on my feet sucks.

jeff said...

CA is definately crack cocaine of online merchant solutions, it took us over 3 months to implement, with little or no support, it is now our #1 priority to dump CA, even before ebay. I can hire a FT employee to manage another solution that I can buy and own for the cost and and grief that CA has been. A word to the wise, they will pay attention to you, answer calls and emails, until you sign the contract and are on the hook, then good luck getting any help at all.

Anonymous said...

If eBay sneezes, doesn't it make sense that Channeladvisor would catch a cold? I can't imagine how Scott and his man-child surrogates will survive the scorching they must be facing as their customers struggle with eBay and this economy. His was not a sound business model in a growing eCommerce world, I can't imagine how Scott can make his model work in a stagnating economy. Maybe M J and his pom poms can cheerlead away a disaster in the making.

Anonymous said...

The bleeding continues for sure - ebay GMV is way down, thus CA revenue has tanked. Nobody is getting close to their numbers. The timing on all of this - the mis-management of the company, no handle on costs, reckless and ill-informed acquisition...combined with the current economic climate - is nature's way of culling the herd. They just got $20M in another round of funding (and probably their last) - given everything above do you think doing away with the free soda is gonna get them to profitability? Nope. And the next round of layoffs and/or mass exodus of those still there in Q1 is gonna make things even more fun over at CA. Cheers boys! Well done!

KELLY said...

I fell sick to my stomach we just signed up last month to ca . There training and support is a joke. Between the start up and the monthly fee it's costing a small fortune. Is there any positives or should we run.