Privately held internet tools company NetDynamics Inc says its third round of financing puts it in a position to go ahead with an initial public offering. The Menlo Park, California company has just raised $8.5m in financing, bringing the total amount of cash it has raised since its formation in 1995 up to $15.4m. NetDynamics says it is now close to reaching profitability, and says revenue has increased by 50% every quarter for the past five quarters, although it will not reveal its annual revenue. The company told Reuters that it didn’t actually need as much money as it has raised, because it is now very much funded by its own revenue growth. Earlier this month, the company launched its re-designed NetDynamics version 4.0 web application development tools, claiming the new software puts it six months to a year ahead of its competitors’ environment (CI No 3,260). Investors in the latest round of funding include Hummer Winblad Venture Partners and US Venture Partners, along with Attractor Investment Management and Integral Capital Partners.
