Tuesday, April 16, 2002

Hyperwave funding to expand U.S. sales operation

Published in Interface Tech News

WESTFORD, Mass. ‹ Knowledge management company Hyperwave ‹ with headquarters in Munich, Germany and North American offices based outside Boston ‹ has secured its targeted $18 million in second-round funding, and plans to expand its sales force in New York, Washington, D.C., Chicago, and California.

Its flagship product, eKnowledge Infrastructure, is aimed at government, media firms, financial businesses, and pharmaceutical and biotech companies, according to company spokesman Chris Gregoire. In November 2001, the company released a major upgrade to the software package, which integrates document management, e-learning, and employee collaboration applications.

"Collaboration for us is the big thing," Gregoire said, citing work within companies and between firms and clients.

Founded in 1997, Hyperwave does not expect to pursue a third round of financing, but instead, is planning for an IPO at an unspecified future date, Gregoire said.

That may be a way off, according to senior analyst John Hughes at Delphi Group. Hughes has been following Hyperwave for several years, and said the company is doing well in its market niche, but is suffering ‹ along with its competitors ‹ in economic conditions that are less than optimal.

Hughes expects the company to remain ahead of the curve and bounce back more quickly than some of its competition, due primarily to its strength overseas.

"They've got some real respect and a notable following in Europe," Hughes said.

He went on to say that Hyperwave's task now is to get some success stories in the U.S., so it can point to real dollar savings when courting new customers.

"They just need to get that value statement out there to people who control budgets," Hughes said.

That is exactly what Gregoire claims the company plans to do.

"We know that we need to put the U.S. market on the map," he said.