Supply Chain Start-Up TrueDemand Software Gets $8M Boost

Filed in archive News on September 3, 2006

In another sign that the market for supply chain management software may be on the rebound, start-up vendor TrueDemand Software Inc. this week said it has received an $8 million, second-round venture capital cash infusion, Managing Automation reported.

The investment brings to $14 million the total venture capital raised by the year-old Los Gatos, CA, provider of supply chain planning, execution, and analytics software. The latest round was led by CMEA Ventures (San Francisco). Original investors in the company were Mayfield Fund (Menlo Park, CA) and Bay Partners (Cupertino, CA).

TrueDemand's investment announcement followed an upbeat report from AMR Research this week predicting a more rapid rate of growth for the $5.6 billion supply chain management (SCM) software market, which in recent years has been essentially flat. AMR predicted that in 2006 the SCM software market will grow by 7%. Previously, the research company had forecast that the market would grow only 1% in 2005, but now says it actually grew 3%. Market growth, the report said, is being led by larger, public vendors such as SAP, Oracle, Manhattan Associates, and Logility and by a group of smaller vendors, including TrueDemand, that are focusing on specific vertical industries.