16 May 2008
DataArt targets additional $2M
With $4 million in its pocket from a February venture capital investment, outsourced financial software startup DataArt Inc. is aiming to close on an additional $2 million in June to boost development of its product in Russia and the Ukraine.
London-based Tower Gate Capital led the deal, joined by New York-based Third Millennium Russia Fund and an unnamed Russian hedge fund. The investment round is the first outside capital the 11-year-old company has taken in, and is expected to accelerate revenue growth with additional business development for high-end financial applications development by a team of 450 programmers, as well as support recruitment of additional developers.
DataArt founder and CEO Eugene Goland said the company was formed in 1997 as an applications developer focusing on Internet startups; it assembled a core team of developers in Russia and the Ukraine, working with university computer science departments. But he said the company lost most of its clients in 2002 and reduced staff from about 300 to 30. The company, headquartered in New York and St. Petersburg, Russia, reorganized as an IT software outsourcer and gradually rebuilt its business to $12.5 million in revenue last year.