And the beat goes on for Yammer (news, site). The enterprise-level micro-blogging platform that was once comparable to Twitter recently changed up its style, adopting a full blow social network look. Evidently the makeover is working. Or at least that's the impression we get by the US$ 25 million the company just landed in funding.
This round was led by U.S. Venture Partners, along with Emergence Capital, Charles River Ventures and Founders Fund, and brings the company's total funding to a cushy US$ 40 million.
These monies will reportedly be used to expand globally and triple the marketing team, which will surely assist in furthering the platform's already explosive -- and influential -- growth. Perhaps it will even set them on the right track to be recognized by Gartner's Magic Quadrant for Social Software in the Workplace (which left them out this year, but slapped on an honorable mention label).
"Most organizations are still grappling with finding the right balance between risk and reward when: considering employee access and engagement with external social networking sites; setting up communities to capture informal knowledge, and discovering "freemium" tools, such as Yammer, in their organizations," stated the report. "Even when there are reasonable expectations of business value, these are hard to quantify in a way that would justify such deployments in opposition to those who fear time wasting, loss of quality control and system abuse."
In any case, the competition is taking notice. Emergence Capital partner and investor in both Yammer and Salesforce, Kevin Spain, called on the CRM company to offer Chatter (another honorable mention) for free in order to successfully compete with Yammer.
“The fact that Salesforce has to copy Yammer even though it has 2,000 sales reps is like Goliath dropping his sword and armor and chasing after David with a sling-shot,” said David Sacks, CEO of Yammer. “This funding will make sure they don’t catch up to us.”
We'll see about that.