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Viacore Inc. raises $43 million from VCers and some big tech names

Supply-chain software maker Viacore Inc. has raised $43 million in funding led by San Bruno-based VantagePoint Venture Partners Inc. and including money from Cisco Systems Inc., Dell Computer Corp., Hewlett-Packard Co. and the venture arm of Intel Corp.

The Irvine-based company said it plans to use the money for product development and to go after new customers in the automotive and aerospace industries.

With its software for electronic marketplaces, Viacore aims to build a command center for businesses that want to share internal data with their suppliers and customers.

The round brings Viacore’s total raised to $78 million. Santa Ana-based Ingram Micro Inc. is an early Viacore backer. The latest funding includes additional money from earlier investors Arrow Electronics Inc., Avnet Inc. and Softbank Capital.

In conjunction with the new funding, Viacore said it won a contract to process transactions at Cisco’ supply chain hub called eHub.

Fadi Chehade, Viacore’s chief executive, told Venturewire that getting the corporate funding wasn’t easy.

“Frankly, this was a labor of love that I don’t want to do again,” he said.

Dell’s investment came only after the deal was approved by Chief Executive Michael Dell himself, according to Chehade.

Viacore was valued at $78 million in the latest round, according to Chehade. The company raised $20 million in September 1999 and soon after raised a $14 million from distributors Arrow and Avnet. At that time, the company was valued at $67 million.

Chehade said $26 million of the new round should take the company to profitability, something he expects by the fourth quarter of next year.

Viacore has 130 employees and its burn rate stands at $1.3 million per month, according to Chehade. Viacore is also looking to expand its reach to Asian markets.

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