Goldman Sachs Group Inc (NYSE:GS) has invested $40 million into sales-tracking software company SugarCRM. SugarCRM competes against companies like Salesforce.com and Oracle. SugarCRM plans on using the funding for research and development and expand their sales and marketing. This past October, SugarCRM announced the latest version of their customer-relationship management (CRM) software called Sugar 7.
“We think the opportunity for CRM is vastly underpenetrated,” stated SugarCRM chief executive officer Larry Augustin. “We figure there are 450 million to 500 million people in customer-facing roles. Today, commercial CRM companies serve maybe 20 million of them.”
Prior to this funding, SugarCRM raised $79 million. SugarCRM was founded in 2004 and they have added 600 new customers in the second quarter. SugarCRM has a total of 6,500 commercial clients.
SugarCRM individual users can use a free version of the software. Paying customers are charged $35 to $100 per user per month. The company’s sales have risen 30% in the second quarter from the same period a year earlier.
SugarCRM may go public in 2013, but it will likely happen in 2014. SugarCRM has 400 employees and is close to hitting profitability.
Goldman Sachs Group Inc (NYSE:GS) vice president Antoine Munfa will be joining SugarCRM’s board of directors. Goldman made this investment through the company’s Private Capital Investing group.
“The CRM market is ripe for technologies and products that change the face of how enterprises conduct business with their customers,” stated Munfa. “SugarCRM, with its user-centric vision and product design, has stepped up to meet a real market need.”