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Digital Fuel – Profile

January 7, 2005

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HQ: San Mateo, CA with R&D in Jerusalem, Israel
Founded: 2000
Management: Largely Israeli management and investor group. CEO/co-founder Yisrael Dancziger does not have a strong resume; he previously founded a messaging company called Coridan. The VP of sales, David Buckland was a VP at Backweb. Digital Fuel’s co-founder and chairman committed suicide in 2004.
Investors: In January 2005, the company raised a $20M Series D round led by Apax Partners with existing investors Benchmark Capital, Israel Seed Partners and Sigma Partners. Series C was an $8M round in 2003.
Business Model: Company specializes in outsourcing governance software that allows very large companies to manage communications with their outsourcing and IT partners. Has strong initial customer base including Procter & Gamble, General Electric, and Siemens.
Competitors: Evident Software, Pipeline Software.
Dirt: At this point, Digital Fuel appears to be a nice, safe investment. They have some good client wins, little competition, and a high growth market. The IPO market for enterprise software has been tepid so we would expect this to be an acquisition candidate in the next 12 months.

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