Recordant Secures $9 Million in Series B Funding
Pequot Ventures Leads Investment in Moment of Truth Intelligence(TM) Technology
ATLANTA, GA – (MARKET WIRE) – February 05, 2007 – Recordant, the first company to deliver "Moment of Truth Intelligence™ (MOTI)" through face-to-face audio capture, analytics and consultative services, announced today a $9 million investment of Series B funding led by New York-based Pequot Ventures. Other participating investment firms include Boston-based Kodiak Venture Partners, who led the Series A funding in 2005 and newcomer Durham, North Carolina-based Aurora Funds.
President and CEO, Jeff Neppl, explains why Recordant chose to work with Pequot Ventures for this important investment: "Pequot has a long history of identifying and actively working with innovative, market-changing technology opportunities such as Recordant." He continues, "Pequot's strategic partner approach affords Recordant a wealth of market insight, national exposure and knowledgeable resources to capitalize on the opportunity to dramatically shape how companies interact with their customers."
Today, companies influence and measure customer traffic to a retail location through advertising, marketing and other means. Point of sale data offers quantitative insight into the results of the customer visit. However, what happens in between is somewhat of a mystery, or the "black box" of retail. Moment of Truth Intelligence™ offers an unparalleled view by providing qualitative information on the actual interaction between a customer and an employee. Leveraging this intelligence, companies can have an impact on the quality of the employee-customer interaction and, ultimately, their bottom line.
"At Pequot Ventures, we target investment companies like Recordant whose technology addresses a fundamental market problem with an innovative solution," explains Deborah Bernstein, principal with Pequot Ventures. "Recordant identified a specific need in the retail industry to better understand the in-store customer experience. By leveraging the advances in digital signal processing, audio analytics, and storage costs, Recordant's Moment of Truth Intelligence™ suite provides previously unavailable insight to retailers about their own customer base. With a seasoned management team, a focused market strategy and measurable return on investment with existing clients, Recordant represents an ideal investment opportunity for Pequot."
Investors are betting with confidence that Recordant has established a first-mover advantage in the marketplace. Evidenced by consistent customer results, Recordant has proven its ability to dramatically improve employee performance, sales activity, training and coaching, customer service and process adherence. Investors are equally excited about the solution's scalability and broad applicability across multiple industries. The Series B round will serve as a catalyst to support Recordant's vertical reach and market strategy.
"Aurora Funds strives to create long-term relationships with companies that can demonstrate superior market potential," notes Jan Bouten, Senior Associate of Aurora Funds. "Recordant recognized the retail channel is not at par with other distribution channels such as call centers and the internet in leveraging technology to address quality assurance issues. Moment of Truth Intelligence™ is an ideal fit for the unique challenges facing the retail environment and an opportunity for Recordant clients to differentiate beyond simply price."
Recordant enables companies in a retail environment to capture employee-customer interactions via an audio-recording device. Upon sophisticated audio processing and analysis, Recordant offers its clients next day access to the actual audio of the in-store interactions. Comprehensive analytics and reporting ensure the resulting intelligence is both manageable and actionable allowing clients to improve overall customer service, sales activity and adherence to standards.
"In 2006 Kodiak secured its position as lead investor to enable the company to scale, beginning by adding depth to its management team and launching a formal sales and marketing effort," explained John Abraham, general partner at Kodiak Venture Partners. "With those goals accomplished, Kodiak is excited to participate with Pequot Ventures and Aurora Funds in Recordant's early success in a variety of markets with such significant, measurable impact for their clients."
Recordant delivers "Moment of Truth Intelligence (MOTI)" solutions through frontline capture technology in order to maximize employee potential and customer satisfaction. Frontline capture technology incorporates audio capture, analytics and consultative services enabling clients to see what is actually happening on the sales floor across every interaction, every day. Companies within retail, hospitality, automotive, financial services and government sectors gain critical insight and the ability to impact employee productivity, service levels, sales activity, training, product direction and promotions. Recordant clients typically operate 100 or more locations, have employees which require specialized knowledge, training and orientation and leverage high-end interpersonal skills as a market differentiator. Based in Alpharetta, Georgia, Recordant is a private company.
For more information, visit www.Recordant.com.
About Pequot Ventures
Pequot Ventures is the direct venture investment arm of Pequot Capital Management, Inc., a leading asset management firm which, as of December 31, 2006 had over $7.6 billion of capital under management (including approximately $412 million of uncalled committed capital). Pequot Ventures is focused on today's most dynamic startup and growth stage companies in the technology, telecommunications, and defense industries. Pequot Ventures creates value in bringing energy and substantial sector expertise to its portfolio companies through the collective intellectual capital, deep operating experience and extensive network of its investment team. The firm leverages its unique multi-billion dollar presence across both public and private equity markets to help build competitive, sustainable businesses in fast changing environments throughout their lifecycle. Pequot Ventures accomplishes this goal in close partnership with the founders and management team of its portfolio companies.
For more information visit www.pequotventures.com.
About Aurora Funds
The Aurora Funds is a venture capital firm that provides capital, connections and strategic guidance to entrepreneurs with early-stage healthcare and information technology companies. Founded in 1994, Aurora manages over $234 million in five venture funds. The firm's six investment professionals have over 100 years of combined venture capital investing and operational experience. The Aurora team has managed investments in over 60 companies, resulting in five IPOs and eight M&A transactions to date.
For more information visit www.aurorafunds.com.
About Kodiak Venture Partners
Kodiak Venture Partners is a Waltham, Mass.-based venture capital firm focused on seed and early stage investments in emerging communications/IT, semiconductor and software companies. With a focus in the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak's investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building and funding market leaders.
For more information, visit www.kodiakvp.com.