Betting $30 Million on Perfect

In the past month, I've gotten a bunch of questions about Perfect's new $30 million funding round. Because of this, I probably should have blogged the news a while ago, as it's definitely generating interest . And after all, we did scoop Perfect's fund raising activities as they were happening back in September.

So what's my honest opinion? $30 million bucks is a big bet to place on a vendor that is rolling-up second-tier players as their primary thrust, which as a general rule -- and I'm not commenting on this case in particular -- brings material operations, integration, and customer risk as an overall growth strategy. In this specific example, I believe the risk is magnified from an investment perspective given how many lines of business (from a supplier network to e-Procurment to e-Sourcing) that Perfect must support given its relative small size.

To be fair, Perfect does have a solid customer list going for it. And their gregarious CEO has a good reputation in the market -- and it speaks worlds that he was able to raise such a large round. In fact, the size of the round is a good sign that investors are willing to place large bets on the sector (which is great news overall). I hope Perfect invests the money wisely, because if they do and they're rewarded with the growth picture that they painted for Apax, then the entire sector stands to benefit as a result.

Jason Busch

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