Omniture founder obtains $33 mln for start-up
* Josh James launches new business-intelligence company
* Twitter backer Benchmark Capital provides funding
By Sarah McBride
SAN FRANCISCO, July 13 (Reuters) - Omniture co-founder and Chief Executive Josh James said he has secured a hefty $33 million for his next venture, business-intelligence company Domo.
The company will build on services offered by companies like German enterprise-software company SAP (SAPG.DE). James said Domo would avoid the technology and steep upfront fees that make it hard for unhappy customers to switch out of enterprise-software contracts.
Domo, previously called Shacho and operating out of public view until now, skips licensed software in favor of cloud-based technology known as software-as-a-service. That technology allows customers to avoid software installations, updates, and maintenance.
The product from Salt Lake City-based Domo lets customers quickly generate up-to-date business information, say on network efficiency or customer complaints.
Pulling similar reports now can be time consuming, particularly for companies using multiple systems to collect it, James said. Frequently, the information is out of date.
It is unclear whether companies will want to add another layer of software to already complex systems. James said he already had several customers, including Fortune 500 companies, using the technology in beta, or test, mode.
James's track record founding online marketing and web-analytics company Omniture, which Adobe Systems (ADBE.O) bought for $1.8 billion in 2009, is a key reason backer Benchmark Capital was willing to give Domo an unusually large sum of cash for such a young company, said Benchmark general partner Matt Cohler. "He understands how to build massive value in markets that are ripe for disruption," Cohler said.
Another was continuing growth in the business-intelligence market, which the Gartner Group expects to grow by more than one-third to $13.8 billion over the next three years.
Domo's board will comprise James; Cohler; Hummer Winblad Venture Partners Managing Director Mark Gorenberg; Symantec (SYMC.O) Chairman John Thompson; Sorenson Capital co-founder Fraser Bullock; and Neal Williams, founder of Corda, a software company acquired by Domo last year.
The company previously raised $10 million from angel investors including salesforce.com (CRM.N) Chief Executive Marc Benioff; Akamai (AKAM.O) Chief Executive Paul Sagan; Symantec's Thompson; and funding firms Andreessen Horowitz and SV Angel. (Editing by Steve Orlofsky)