December 10, 2010, 6:23 PM — Cloud-based HR workforce and management software provider Cornerstone OnDemand, which filed for an initial public offering in late September, has closed an $8.3 million round of funding, according to CB Insights.
Cornerstone, based in Santa Monica, Calif., publishes talent management software as a service designed to help organizations make decisions on training, social networking, performance, compensation, succession planning and compliance, and to maximize "the productivity of their human capital." (Don't they mean "chattel"?)
Founded in 1999, Cornerstone claims nearly 400 clients and 4.25 million subscribers to its service spread over 164 countries and in 16 languages.
Clients include the American Bankers Association, MasterCard, Barnes & Noble, Ticketmaster, DirecTV, Siemens and Trend Micro.
Previous investors of Cornerstone include Bessemer Venture Partners, Bay Partners, Rosetta Capital Partners, Meritech Capital Partners (enough with the partners!) and Aon Hewitt Inc. (thank you, Aon).
Details of Cornerstone's IPO filing are sketchy. While the company plans to raise an estimated $115 million with the IPO, still undetermined are the number of shares to be offered, the offering date and the price range. Other than that, everything is set in stone. Underwriters are Goldman, Sachs & Co. and Barclays Capital Inc.
According to Dow Jones, Cornerstone's revenue in the first half of 2010 was $20.3 million, up 50% from a year earlier. However, the company lost $9.3 million in that time, triple the $3.1 million in losses from the year-ago period. I'd say that explains the funding round.
Chris Nerney writes about the business side of technology market strategies and trends, legal issues, leadership changes, mergers, venture capital, IPOs and technology stocks. Follow him on Twitter @ChrisNerney.