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TNR Featured in 4vco March '06 Newsletter
From 4vco September Newsletter
Vendor Profile Update - TheNextRound
It is almost 18 months since 4vco last profiled TheNextRound (TNR). 4vco caught up recently with Andy Barrett, Business Development Director, for an update.
Clients and Staff
In 2005 TNR has reported another year of strong growth, including headcount, client numbers and revenue increasing by over 100 per cent. Client numbers have grown from two clients four years ago to more than 80 clients in 11 countries across North America, Europe, the Middle East and Asia.
To support the growing client base, the headcount has increased to more than 45 staff. TNR hires account managers with accounting backgrounds and private equity or venture capital experience, explains Barrett.
TNR is headquartered in Westborough, Massachusetts where the development staff are based. A second office in New York City opened in 2005, and TNR is exploring the options for opening a European office to act as a support centre for its European clients, providing on-site training and support.
Products
In 2005 two new versions of the TNR Solution software were released. Functionality released over the last year includes:
- Automatic two—way synchronisation of Outlook contacts, emails and calendar.
- Tracking of fees paid to and received from service providers.
- Enhanced multiple-closing allocations.
- Advanced roll up/sub-account General Ledger functionality and cheque writing.
- Expanded transfer of interest tool.
- Graphical IRR analysis tool for slicing and dicing by industry, region, deal partner, year, currency, etc.
- Portfolio Portal for portfolio companies for secure upload of financials and other documents.
- Integration with Google Desktop Search.
To support TNR’s European sales, the software now incorporates European-specific enhancements including EVCA reporting.
Barrett stresses the role of current and new clients in influencing the software’s future direction. “We are constantly listening to their ideas, attending industry- and region-specific events (such as the recent Gulf Venture Capital Association Conference) and paying close attention to the changing needs of the industry,” he said. Over the past year, Barrett says the TNR client base has become more involved in determining future direction. He continues, “We have started to have user group sessions to discuss new functionality and enhancements that are common across multiple clients paying close attention to reports”.
TNR has seen the rise in fundraising activity driving greater interest in looking at systems both to support planning the fundraising as well as giving them a competitive edge.
Barrett describes how clients will approach TNR looking for a back office or front office solution, but not always both at the same time. Barrett takes up the story: “Often, after the Finance team begin using the software, they realise the value that it can provide to other parts of the business. We have seen the requirements of our customers change this way, and have seen many clients that have implemented TNR across the whole organisation”.
Barrett says that TNR has adapted to meet the customers’ evolving implementation requirements. “Each year we provide more and more full implementation services including import and reconciliation of all historical data, setting up fund structures, customised reporting, specialised training, etc.”.
Strategy Barrett describes the marketplace as reasonably competitive; he foresees the bigger vendors consolidating their hold on the marketplace, with the smaller vendors focusing more on individual, custom projects.
“Clients” Barrett observes “are becoming more sophisticated and ‘savvy’ in using the software”. He continues, “Clients often tell us they felt ‘held back’ when using spreadsheets or other systems. Once they are on a standard platform though, it becomes easier to analyse data and easily sort through information. The more analysis that can be done, the more they will demand from the software”.
Barrett reports that TNR will be focusing more initiatives in Europe, the Middle East and Asia. The past 12 months have seen more direct activity in Europe leading to sales. Going forwards, Barrett expects that a European office will further strengthen their presence. In the next few months TNR will be running a series of workshops in European cities, details to follow in future 4vco newsletters.
Barrett describes the four principals that contribute to TNR’s success as product stability, functionality, customer support and technology.
A further objective for the company is to continue with the high levels of growth. Barrett talks of “maintaining triple digit growth in revenues, clients, and employees for the next one to two years”. Barrett is confident that TNR is on a path to continue growing at this level.
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