Third round funding also includes capital commitments from previous investors SAP Ventures and Vortex Partners, each a venture capital firm specializing in communications and e-commerce. Second round funding was completed in April 2000, according to Sukhi Singh, the company's founder and senior vice president for business development.
All together, OpsXchange, founded in 1999, has received more than $12 million in venture capital. The new funds will be used for product development, sales and marketing, according to Singh. The company will also use the new money to integrate a supplier network that will enable Equity and Camden and other new clients to begin online purchasing.
The OpsCommerce software platform connects buyers and suppliers through digital pipelines, allowing for real-time transactions, integration with existing buyers and sellers, and management applications. During the past 18 months OpsXchange focused on developing the proprietary e-procurement technology that enables purchases of goods and services.
It's competition includes San Francisco-based iBuilding, which has attracted $15 million in venture capital; Austin, TX-based SiteStuff, which has attracted $30 million; and Atlanta-based FacilityPro, which has attracted $25 million.
In a recent survey, Chicago-based Deloitte & Touche found that many property managers want e-procurement to save them time and money. On the other hand, some say they're also willing to wait until providers have a sufficient number of suppliers, work out technology issues and help them track spending by property, account code, region and vendor.
A critical issue in Equity Residential's backing of OpsXchange was the support for existing business relationships and pricing that already exists between property owners and operators and their suppliers, according to Leslie Fox, division president.
Internet Realty Partners LLC is a private equity fund sponsored by Cohen & Steers Capital Management that manages more than $5 billion in real estate portfolios. Equity Residential Properties Trust is a self-managed equity real estate trust that owns or has an interest in 1,102 properties in 35 states. Camden Property Trust owns interests in and operates 145 properties containing more than 51,336 apartments from Florida to California.
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