SOURCE: uTest

December 02, 2008 09:00 ET

uTest Secures $5 Million in Series B Funding

Innovative Pay-for-Performance Approach to Software Testing, Large Global Community and Strong Customer Traction Brings New Lead Investors

BOSTON, MA--(Marketwire - December 2, 2008) - uTest, the SaaS marketplace for software application testing, has closed $5 million in Series B venture funding. Sparked by significant new customer acquisitions and community growth, the round was led by new investors Longworth Venture Partners and Egan-Managed Capital. Previous investors Mesco Ltd. and the Massachusetts Technology Development Corp. also joined the round. The funds will be used to accelerate growth and continue market penetration, particularly in the web, desktop and mobile application space.

"To satisfy customer demands and address competitive pressures, technology companies are looking for quick, sustainable, and cost-effective ways to get their software to market," said Peter Roberts, partner at Longworth Venture Partners. "uTest has created a truly innovative on-demand solution for quality assurance and testing that enables those companies to meet short deadlines with amazing results. Our market research validated that uTest has a compelling answer for software companies grappling with keeping costs low, quality high and accelerating time to market. uTest also helps customers keep pace with the marketplace evolution to the use of SaaS-based solutions."

Research analyst firm Gartner estimates that the market for software testing is $13 billion. According to the National Institute of Standards and Technology, the annual cost of software defects in the United States alone is estimated at $60 billion. Other surveys found that nearly 40 percent of organizations have suffered significant financial loss as a result of deficient or inadequate software testing.

"It is a credit to the community and the business that uTest has been able to attract investment partners with the vision and track record of Longworth Venture Partners and Egan-Managed Capital," said Doron Reuveni, chief executive officer, uTest. "Our cost-effective and sustainable business model demonstrates a strong value for technology companies, and the resulting sales momentum helped to accelerate our fund raising efforts."

uTest is a community and marketplace for software application testing and Quality Assurance (QA). Companies use the on-demand service to manage their QA cycles and invite uTesters™ in the community to test their products. uTest has assembled the first, only and largest on-demand worldwide pool of professional software testers delivering a full range of testing services: functional, usability, load, and performance testing throughout the product development lifecycle.

The uTest model represents an evolution in traditional software application testing. By offering virtual on-demand software testing services and a Pay-for-Performance business model, uTest offers unique flexibility around tester skill-sets, platform, environment, geographic location and budget. The uTester Community of more than 11,000 highly skilled software professionals across 144 countries is delivering unparalleled real-world testing throughout product development lifecycles.

The web-based testing platform features include test case management tools, real-time information on logged bugs and defects and statistical information on release maturity level. Companies can build their own virtual testing team, define their testing requirements and get their application tested by the uTester community.

About uTest Inc.

uTest™, headquartered in Massachusetts, is the SaaS marketplace for software application testing -- providing software companies with on-demand testing services by a global community of professional testers. Coupled with its unique pay-for-performance business model, uTest delivers a powerful "real-world" cost-effective solution providing a full range of testing services -- functional, usability, load, and performance testing throughout the product development life cycle. More information about uTest can be found at http://www.utest.com. uTest's blog can be read at http://blog.utest.com/.

About Longworth Venture Partners

Longworth Venture Partners is a Boston-based venture capital firm that invests in early-stage Internet, media, software and wireless companies. For over twenty years, the Longworth team has founded, built, and led investments in some of the most innovative and successful technology companies. The firm combines a proven track record of entrepreneurial and operating success with top venture investing performance to support entrepreneurs in building the next generation of technology leaders. For more information please visit http://www.longworth.com.

About Egan-Managed Capital

Egan-Managed Capital is a New England-based venture capital firm that provides funding for early-stage high-technology start-ups. The firm delivers field-tested strategies, first-hand technology expertise and hands-on management involvement. Founded in 1997, Egan-Managed Capital currently manages funds with $233 million in committed capital. For more information please visit http://www.egancapital.com.