InfoNow Secures $6 Million in Series a Venture Financing

    Funding to Fuel Faster Delivery on SaaS Channel Data Services Product

    DENVER, October 18 /CNW/ - InfoNow Corporation, the leading provider of
SaaS-based channel data services, today announced the closing of $6 million
dollars in Series A funding. Sequel Venture Partners and Sevin Rosen Funds led
the financing. InfoNow intends to utilize the proceeds from the financing to
further invest in product development, marketing and sales activities, with
the expectation of accelerating the company's growth. The company also
announced that Ram Velidi of Sevin Rosen Funds and Tim Connor of Sequel
Venture Partners have been named to InfoNow's board of directors, joining
existing members Mark Geene, Jeffrey Peotter, and Allan Spies.

    InfoNow collects, processes and enriches channel sales and inventory data
for companies that sell through channel partner networks. Since early 2006,
with a new management team in place, InfoNow has completely restructured its
organization and transformed its offering to a software-as-a-service (SaaS)
model. Investing in its SaaS solution has enabled the company to significantly
reduce operating costs while broadening its market opportunity.

    Significant company achievements and developments under the new
leadership include:

    --  Delivered revenue growth in the first half of 2007 of approximately
17% over the same period in 2006

    --  Reduced overall cost structure and developed operational efficiencies
to deliver positive cash flow during the past twelve months

    --  Grew client base to 47 customers, including leading companies such as
AMD, Polycom, APC and Kingston Europe

    --  Improved the company's infrastructure and system reliability and
availability through increased capital investment

    --  Expanded product offering with solutions for managing rebate, pricing
and sales credit assignment data in addition to point-of-sale and inventory

    --  Received U.S. Patent Office notice of allowance of patentable
technology for InfoNow's geo-spatial business entity matching technology that
provides entity identification rates significantly superior than competitive

    "Already InfoNow has developed an impressive list of customers and our
pipeline continues to grow as more and more companies discover the benefits of
highly accurate and timely sales and inventory data delivered into their
business systems," said Mark Geene, CEO at InfoNow. "With this investment from
Sequel and Sevin Rosen we can now more rapidly deliver on our product roadmap
and continue to deliver innovative on-demand solutions that drive significant
value for our customers. We will also expand our investments in sales and
marketing with the goal of further accelerating our growth and leadership in
the emerging market for channel data services."

    "InfoNow offers high-value solutions for both manufacturers and channel
sales organizations, and has a clear technology advantage over alternatives,"
said Tim Connor, partner at Sequel Venture Partners. "By moving to a
software-as-a-service delivery model, the management team has increased sales
momentum and positioned the company to further capitalize on this largely
untapped market."

    The Series A Preferred Stock was sold in the financing for $0.5882 per
share on an as-converted basis and, on a fully diluted basis, the Series A
shares represent approximately 40% ownership in InfoNow. The conversion ratio
is subject to upward adjustment based on the results of the company's efforts
to restructure and reduce its outstanding options pool. As a result, the
effective purchase price that purchasers of the Series A Preferred shares will
have paid for InfoNow common stock will range from $0.50 to $0.5882 per share.
The holders of the Series A Preferred Stock are entitled to receive
non-cumulative dividends equal to 8% of the initial purchase price paid for
the Series A Preferred Shares prior and in preference to any dividends being
paid to the holders of InfoNow common stock.

    Upon the liquidation of InfoNow or in connection with certain major
corporate transactions affecting InfoNow, the holders of the Series A
Preferred Stock will be entitled to a liquidation preference equal to the
original purchase price paid for the shares plus any declared but unpaid
dividends, and thereafter will participate in additional liquidation proceeds
on an as-converted basis with InfoNow's common shareholders. The holders of
the Series A Preferred Stock will vote together with the holders of InfoNow
common stock on an as converted to common stock basis, provided that they will
also be entitled to vote separately to elect two members to the InfoNow board
of directors. The Series A Preferred shareholders have customary protective

    InfoNow's audited financial statements for 2006 and unaudited selected
financial information for the first half of 2007 can be found on the company's
website at Financial statements for 2005 and
prior years are contained in reports filed with the Securities and Exchange
Commission, and can be located at

    InfoNow's common stock has been de-registered under Rule 15d of the
Securities Exchange Act of 1934. Accordingly, the company is not required to
disclose information regarding its financial performance, or other material
information, nor does it intend to make any such disclosures in the future.
Investors and prospective investors should not expect that any financial or
other information subsequent to June 30, 2007 will be made publicly available.
Lack of publicly available information going forward could negatively impact
our future share price and market liquidity.

    About InfoNow Corporation

    Based in Denver, Colorado, InfoNow provides SaaS-based channel data
services that collect, process and enrich channel sales and inventory data for
companies that sell through complex channel partner networks. InfoNow's
solutions help companies such as AMD, Polycom and SMC gain rich, timely and
actionable information on channel sales, including enhanced market
intelligence on partners and end customers. For more information, visit

    About Sequel Venture Partners

    Sequel Venture Partners is a Boulder, Colorado-based venture capital firm
specializing in early-stage funding for emerging technology businesses located
primarily in the Rocky Mountain region. Managing over $400 million in capital,
Sequel focuses its investments in the areas of information technology,
communications technology and health care.

    About Sevin Rosen Funds

    Sevin Rosen Funds is a top-tier venture capital firm with a record of
funding successful companies since 1981. The SRF partnership has consistently
made early-stage investments in pioneering technologies and companies with the
potential to create new markets. The partners' broad range of venture and
operating experiences in successful technology companies translates into a
sustained commitment and contribution to the development of the ventures
funded. The firm has offices in Dallas, Palo Alto and Austin. For more
information, please visit

    Except for the historical information contained herein, matters discussed
in this release are forward-looking statements that involve risks and
uncertainties, and actual results may be materially different. Factors that
could cause actual results to differ include the risk that sales of the
company's services may not develop as expected and the risk that the company
may not be successful in forecasting and meeting customers' demands for its
software and services or deploy its solutions and services as expected.

For further information:

For further information: InfoNow Corporation Dana Dye, 415-846-1001

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