Investors flip out over SilkRoad, invest $54M

WINSTON-SALEM, N.C. — With 700 customers already on board, SilkRoad technology is embarking on a major expansion effort that will be powered by $54 million in new venture funding.

The talent management software company also is expanding its management team, naming a chief executive officer. Chairman, chief executive officer and founder Andrew “Flip” Filipowski is bringing in Mike Cullinane, who worked with Filipowski at another venture, to run the company’s finances as chief financial officer.

Foundation Capital is the leader of the new funding round. Other investors include Azure Capital Partners, SilkRoad Equity and several individuals, who were not identified. Filipowski is a co-founder of SilkRoad Equity.

In February, SilkRoad said it closed on $10 million in new funding, with Azure Capital as the lead investor.

“The software as a service space, and especially the talent management segment of it, is one of the greatest opportunities for value creation that I have ever personally observed in the software industry,” Filipowski, a serial entrepreneur, said.

“As we pursue our mission, I could not hope for a better management team nor a better investor group to help us achieve our goals,” he added in a statement. “Adding Mike Cullinane as our CFO, and having both Warren Weiss and Cameron Lester join our board, makes it almost unfair to our competition. We now have the products, the team and the financial resources we need to succeed.”

Weiss is a general partner at Foundation Capital. Lester is a general partner at Azure Capital Partners.

Cullinane, who worked with Filipowski as CFO at Platinum Technology, most recently was CFO at Lakeview Technology.

SilkRoad, which launched in 2003, offers a variety of talent management solutions, from recruiting management to employee performance review and compensation management. Customers include Allianz, Unisys, H&R Block, Crate and Barrel and Deloitte.

The company has offices in Massachusetts, New Jersey and Germany.

Foundation Capital has more than $2.4 billion under management. Azure Capital manages some $650 million.