ModelN Looks To The Cloud

According to a recent research report, the global revenue management market is estimated to grow 17% annually to $31 billion by the year 2025. ModelN (NYSE: MODN) is a leading player in the industry that has focused its efforts on certain key verticals. Its commitment to the verticals helped it survive the dot-com bubble. The company has recently been transitioning to the cloud, and initial results are well liked by the market.

ModelN’s Offerings

San Mateo-based ModelN was set up in 1999 by serial entrepreneur Zack Rinat and Yarden Malka with the vision of “stopping revenue leakage and improving regulatory compliance”. Soon after ModelN was set up, the economic bubble burst. But unlike other dot-com failures, ModelN managed to survive. It attributes its survival to its culture and vision.

ModelN’s management realized that they needed to look at developing applications on top of the technology that it already had in place, and that the applications had to offer very precise value propositions. With that objective in mind, they narrowed down on the medical device market which was not sensitive to economic conditions and there weren’t many competitors in the space. ModelN has stuck to that vertical driven vision ever since.

Today, it offers revenue management tools for the pharmaceutical, medical device, high tech, semiconductor, and electronic components manufacturing industries. Its solutions cover the range of pricing and quoting, contract development and management, trade settlements, and channel incentives that help eliminate revenue leakage and reduce the financial regulatory compliance risks for organizations. Its solutions integrate industry specific needs and best practices to drive better planning and control throughout the revenue life cycle.

By 2004, ModelN had raised $42 million in funding from two rounds from investors including Accel and Accel KKR along with other private investors. In 2013, the company went public on the NYSE and raised $104.5 million at a valuation of $332.3 million. It sold its shares at $15.5 apiece.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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