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					Vuepoint, E-learning Provider to the Fortune 500, Secures Over
                 $11 Million in Growth Capital
                   Led by Wheatley Partners
                                     08/01/01
                      By Emily Trask, Editor, Eduventures.com

Announcement
Last week, Vuepoint Corp., an e-learning company in the corporate market,
announced that it secured approximately $11 million in growth capital. The
investment was led by Wheatley Partners, and it included Hudson Venture Partners,
Dalewood Associates LP, Dalewood 2 Private Technologies Ltd. and Wafr Holdings.
EarlyBird Capital acted as placement agent for the transaction.

What it Means
At a time when venture capital investments have scarcely been seen in the education
and training space, Vuepoint's ability to garner more than $11 million in venture
capital is indicative of the company's solid strategy of offering a turn-key e-learning
program to corporate customers.

Vuepoint's investment is greater than the $10.7 million total corporate investments
that were made in June of this year.

Corporate Profile
Founded in 1996, by its present CEO Ara Ohanian, who brings 10 years if
international corporate and knowledge transfer experience to the company, Vuepoint
was established to enable the transfer knowledge-based corporate events into an
ongoing process throughout a company. Ohanian and his team spent the first few
years of the company's existence in research and development, aiming to develop
flexible and customizable software for global enterprises. And although the company
is five-years old, the $11 million capital infusion marks Vuepoint's first round of
institutional funding. Previously, the company was funded by its founders and other
individual investors.

Vuepoint's Offerings
Vuepoint has created software that is intended to provide a single e-learning solution
enabling companies to avoid the overlap of capabilities and inefficiencies that are
inherent in using different types of e-learning software.

   •   Vuepoint Learning System (VLS) - As its flagship product, the company offers
       a fully integrated platform that combines the capabilities of a learning
       management system (LMS) and a learning content management system
       (LCMS). This single platform enables the rapid creation and dissemination of a
       company's content to employees and consumers. And, it provides a complete
       back-end management tool in order to identify individual learning needs and
       gaps in order to align employee skills with the goals of Vuepoint's customers.
       In the fourth quarter 2001 upgrade of the product, the VLS will also provide
       content authors with the freedom to decide whether or not they wish to tag
       content to create learning objects.

   •   Consulting Services - The company offers support services to ensure smooth
       integration of the VLS into a company's infrastructure.
           o Content Development - provides outsourced content authoring service
              to migrate a company's individual content to the VLS

           o   Immersion Programs - training companies' e-learning experts to create
               and rapidly populate the VLS with their own content

           o   Global Management Strategy - offers training on how to utilize the VLS
               to achieve company growth and align the system with a company's
               business goals and objectives

Business Model and Revenue Streams
Vuepoint generates its core revenues from recurring annual licensing fees for the
VLS platform, with a minimum of three-year licensing agreements. Although the
company's support services are neither required nor included as part of initial
licensing fees, customers can pay additional fees to utilize Vuepoint's extensive
consulting services.

The company currently maintains approximately 20-30 major clients, with each
account worth between several hundred thousand dollars to one million dollars. So
far in 2001, the company has secured a number of multi-million dollar accounts.

Growth Strategy
While the company intends to use the $11 million of its recently secured growth
capital to develop new products and capture more clients, Vuepoint's main objective
over the next year is to reinforce its customer service capabilities for existing clients.
The company aims to increase customers' speed to knowledge in order to increase
their potential for productivity. Vuepoint believes that building its implementation
and delivery capabilities is critical to building its brand equity within the corporate
space and securing new, large-scale global accounts.

Eduventures Analysis
Vuepoint faces competition from LMS providers, knowledge management companies,
content-authoring providers and any company that enables the migration of
knowledge to an electronic format. To Vuepoint's advantage, many corporate-
seekers of e-learning software are discouraged with the lack of truly integrated,
flexible and customizable products.

The company differentiates itself from its competitors, not only in its integrated LMS
and LCMS offering, which dramatically reduces an enterprise's cost of ownership, but
also through the speed of its system implementation and the speed of its responses
to customers' needs. To its credit, Vuepoint has secured accounts with a number of
large-scale corporations including, Toyota Motor Corporation, A.T. Kearney, 3Com
and Black&Decker. Vuepoint claims to distinguish itself by focusing on the mission-
critical business content of enterprises. As such, the company positions its VLS
product as a marketing weapon, moving beyond being an e-learning application to
becoming an integral part of a company's business infrastructure.

The company's most significant challenge is to convince potential clients of the value
and reality of its integrated learning and content management system. To date,
Vuepoint has provided ROI results for a number of its customers to demonstrate the
cost-effectiveness of its products, including A.T. Kearney, which exhibited positive
ROI within only one year of its three-year licensing contract, which more than
covered its e-learning investment a few times over. Leveraging recently infused
capital, Vuepoint must work to achieve its ramp-up of consulting and support
services to ensure, beyond a doubt, seamless integration of its VLS across
enterprises and to maintain attractive customer ROI results, in order to effectively
grow its business in a cut-throat marketplace.

Bottom Line
Over the last few months, venture capital investments has slowed to a trickle in the
education industry. However, while investors remain cautious, they are still
interested in investing in growing companies that possess viable business models
and can produce demonstrable customer successes and results. So, while stories of
companies being delisted, closing down and selling out to larger companies have
been in the news, investments in companies such as Vuepoint prove that venture
capitalists are still able to fund compelling investment ideas.

				
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posted:1/9/2009
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