Deals

Money Magnet: Enterprise app platform that got $35.4M from HTC actually closed $47M in funding

Just call it “Money Magnet.”

Business application platform Magnet Systems was thrust into the spotlight yesterday when we learned that HTC, burned by its stake in OnLive, was doling out $35.4 million for a 17.1 percent stake in the nearly four-year-old startup. Lost in the news, however, was that Magnet actually raised $12 million more with the help of esteemed Valley firm Andreessen Horowitz.

Magnet confirmed to VentureBeat that it closed a Series B round of more than $47 million at a valuation exceeding $200 million. Andreessen Horowitz, the lead investor in the startup’s first round in 2011, reupped with an additional $10 million investment. Warburg Pincus managing director Bill Janeway participated again as well.

Founded in late 2008, Magnet would like to make work-centric mobile applications worthy of sitting next to your favorite gaming and social applications. That’s a problem and an opportunity sizable enough to warrant a whopping $47 million more in funding, cofounder and CEO Alfred Chuang told VentureBeat in a phone interview.

“To get there to be some level of balance [between consumer and enterprise apps] where you see the smartphone have literally great applications that people are dependent on for work — that’s the goal we’re trying to achieve,” Chuang said.

People, he added, live on their smartphones, and yet most currently turn to just two or three applications, such as email and IM, to manage their work needs.

Magnet’s platform will give its enterprise clients social, mobile, cloud, and big data services specially tailored for e-commerce and IT application development. “We plan to sell a complete solution for people to build a new generation of enterprise software applications,” he said.

The platform has yet to officially launch, but it’s currently operating in limited beta and should go live in the first quarter of 2013.

Magnet Systems is based in Palo Alto, Calif. The startup has raised more than $65 million in funding to date.

Magnet dollar photo via Shutterstock

blog comments powered by Disqus