Sigma Systems Group announced on August 22, 2000 that it had secured US$20 million in venture capital funding to develop new software offerings. The first round of financing was led by Kleiner Perkins Caufield & Byers of Menlo Park, California and Redwood Ventures of Palo Alto, California. Kleiner Perkins Caufield & Byers is the legendary Silicon Valley venture capital firm that covered the start-up costs for Netscape and Amazon.com. Their investment of $15 million marks the second time in its 28-year history that the firm has financed a Canadian company.
Sigma will also use the financing to open sales offices in the United States and Europe and to create a software development centre in India. Sigma develops software for customer orders, tracking and billing for clients in the telecommunications industry.
Jay Kellerman and Christopher Bean of Stikeman Elliott’s Toronto office acted for Sigma on the transaction, while Kleiner Perkins and Redwood Ventures were represented by Michael Kagnoff and Sherry Schnell of the San Diego office of Brobeck, Phleger & Harrison LLP. In addition, Canadian legal advice was provided to the investors by Ron Kosonic and Lisa Marcuzzi of Aird & Berlis.