Socialtext raises funds and cuts stuff

Chris Caceres · April 3, 2009 · Short URL:

Socialtext raises $4.5 million and announces layoffs

 Socialtext, has announced its raised $4.5 million in Series D funding from Draper Fisher Jurvetson and Omidyar Network, according to its blog.  Eugene Lee, CEO of Socialtext also said the company will be laying off 6 employees due to an effort in which he explains as, "trimming our expenses to make sure we drive the company to profitability despite the uncertainty of the economic recession."

Palo Alto, Ca., based Socialtext, offers social networking software solutions for enterprise companies.  Its products work with the social Internet including Wiki Workspaces, Collaborative Weblogs, Social Networking, Social Messaging, Distributed Spreadsheets and a Dashboard. 

Adding on to its array of products, Socialtext has also launched, Socialtext Signals, which offers micro-blogging very similar to Twitter.  The application runs on the user's desktop using Adobe AIR technology, similar to Tweetdeck.

If a user needs to add unique functionality, Socialtext also has an open API platform so users can build their own widgets using the Google OpenSocial Gadget standard. 

Socialtext's products are offered as SaaS.  To get the full package deal, companies pay Socialtext $15 per user per month with a 50 user minimum

The company has around 4,000 customers world-wide including Intel, IKEA, Symantect and Nokia. 

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Socialtext Incorporated is the first wiki company and leading provider of Enterprise 2.0 solutions. Socialtext captures the best features of web-native tools called "wikis" and "weblogs" and brings them inside your enterprise to create a collaboration and knowledge tool that works the way people do.

Traditional groupware and knowledge management tools use top-down constraints: pre-defined roles, workflows, and categories. Socialtext takes a bottom-up approach to collaborating and empowers people to develop their own solutions.

With Socialtext, people form groups flexibly, and build lightweight structure on the fly, as part of getting their job done -- without needing design or coding skills.

As Ross Mayfield, says, "Simple tools with simple rules yield the best results." Socialtext is social software that groups can actually use to make themselves and their organizations more productive, while building trust between participants.

When people collaborate, good things happen. Since 2002, over 4,000 organizations -- from business, non-profit and academic sectors have become part of the Socialtext network.

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