Cape Clear raises US$15m in new funds

24 Apr 2006

Cape Clear Software, the Dublin-based firm established by Iona co-founder Annrai O’Toole, has secured US$15m in fourth-round venture capital funding. The funding came from Silicon Valley venture firm InterWest Partners as well as existing investors Accel Partners, ACT Venture Capital and Greylock Partners.

The new funding will be used to support Cape Clear’s global expansion and its growth in the service-oriented architecture (SOA) market.

The lead investment is from InterWest’s US$600m ninth fund, known as IW IX, which focuses on early-stage life sciences and information technology companies. The ninth fund was created for information technology investments in the areas of technology-enabled services, infrastructure systems and semiconductors and component technologies.

As part of the investment, Steve Bowsher, general partner with InterWest, will join Cape Clear’s board of directors. Bowsher concentrates in the enterprise software and internet sectors and currently sits on the boards of PAR3 Communications and Symphoniq. He also manages InterWest’s investment in MarketTools, OutStart and Loancity.

“Cape Clear’s advancements in its products and technology and ever-growing client roster piqued InterWest’s interest and made for an easy decision to invest in the company and help guide this growth,” said Bowsher.

“Success breeds success and this has made Cape Clear a very attractive prospect for us and our co-investors. This latest round of funding will ensure Cape Clear increases the distance between itself and its competitors, both in terms of developing its technology and partnerships and in growing its presence globally.”

Cape Clear chief executive Annrai O’Toole said that the company plans to open new offices throughout the US, Europe and the Asia-Pacific region.

“Cape Clear has secured a leading position in its field based on the core values of open standards, infrastructure agnosticism and a commitment to increasing developer and administrator productivity,” O’Toole explained. “Our reputation, earned from successful customer deployments, is why we have attracted top-tier investors such as InterWest Partners.”

By John Kennedy