Content Management Vendor Nuxeo has announced that they have acquired an additionsal $3.8 million in funding from venture capital firms. This brings the total amount raised to $9.5 million to date.
Acording to Nuxeo, they will use the new capital to support their rapid growth in the U.S. market. Nuxeo launched a presence in the U.S. market in 2009, and has exceeded revenue expectations in the region in the past 3 years, with over 100% growth annually since 2011. The U.S. market now represents more than 50% of new subscription sales for the company.
The capital will support a range of activities, such as building out consulting and support teams, and expanding the sales presence in North America.
“Our product appeals to architects, developers, and project managers in technology-enabled companies,” said CEO Eric Barroca. “Nuxeo clients such as Electronic Arts, Sharp, FICO, Netflix, and Jeppesen/Boeing are using the Nuxeo Platform to build applications to solve problems in their particular business context. Our business model is based on annual subscriptions, so we are deeply invested in the success of our customers’ projects. We’ve reached a stage in our growth where we need to expand so we can maintain our high standards for support and project guidance.”
Nuxeo’s business model centers on a subscription offering that includes support, maintenance, and application design and deployment tools. Nuxeo is sustaining a monthly subscription renewal rate of 105% globally, indicating both a high level of customer satisfaction and bigger renewal contracts to accompany growing projects. This corresponds to a negative churn rate, which is much better than average for the software industry.
Learn more about Nuxeo.