While tech stocks were bludgeoned on Wall Street, software maker Digital Paper Corp. says it's closed a third round of venture funding, scoring $15 million. Digital Paper's software facilitates online exchange transactions.
AC Ventures, the venture-capital division of Andersen Consulting, and Aether Capital, the investment division of wireless product developer Aether Systems Inc., joined Digital Paper investors Columbia Capital, Edison Venture Partners, and Longworth Venture Partners in the third round.
According to Christopher Fountain, Digital Paper's president, the money raised will be used to focus on technology development, but it will also fuel heavy investments in sales, marketing, and business development. The company is cultivating partnerships with content providers and systems integrators."
The interest in Digital Paper, during a time when many a venture capital firm is shying away from tech investments, might arise from its history of profitability. "The company was started in 1995 and went four years without venture capital," Fountain says. "And during that time we built strong technology, established a solid position in the market, and attained profitability."