The Rainmaker Group Secures $33.8 Million from Norwest Venture Partners to Accelerate Growth
Leader in revenue management and profit optimization solutions pursues significant growth opportunities in analytics and big data across key verticals.
Atlanta, GA (PRWEB) October 30, 2012
The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, announced today that it has received a $33.8 million equity investment from Norwest Venture Partners (NVP), a leading multi-stage investment firm. Rainmaker will use the capital infusion to bolster its sales force, enhance its product portfolio and further develop new analytics and big data solutions to meet the needs of its growing customer base. With this minority investment, NVP's Jon Kossow and David Su have joined Rainmaker's board of directors.
Rainmaker provides its clients in the multifamily housing and gaming/hospitality industries a strategic advantage, enabling them to achieve the highest revenue and profitability from their assets. Delivered via a Software-as-a-Service (SaaS) model, Rainmaker's revenue management and pricing analytics software combines proprietary algorithms, robust big data and profit optimization technology and deep industry expertise to deliver best-of-breed solutions. A sampling of Rainmaker's multifamily housing clients includes leaders such as Archstone, AvalonBay Communities, Equity Residential, Gables Residential, Post Properties and MAA. Select gaming/hospitality customers include leading casino and hotel organizations such as Atlantis The Palm Dubai, Caesars Entertainment, MGM Resorts International, Omni Hotels & Resorts and Wynn Las Vegas.
"We are seeing a tremendous demand for our revenue management and price optimization solutions, and this infusion of growth capital validates our vision to deliver real dollars to our customers' bottom lines,” said Tammy Farley, co-founder, principal and president of The Rainmaker Group. “NVP has a stellar reputation and strong track record in the analytics sector and is at the forefront of new opportunities via its multi-stage and multi-sector approach to investing. This is extremely appealing to us from a growth and acquisition perspective and we are thrilled to partner with NVP as we expand our business further.”
“We are impressed with Rainmaker's talented leadership team, which boasts more than 200 years of collective experience in building and growing revenue management businesses. We believe pricing and revenue management can unlock tremendous value in many enterprises and as a leader in the space, Rainmaker represents an extremely compelling SaaS investment opportunity. We look forward to partnering with Rainmaker to expand the business further into new verticals and pursue key growth strategies,” said Jon Kossow, general partner at NVP.
Rainmaker is the only multifamily solution that is a true revenue optimization model, versus simply yield or rules-based models available in the marketplace. Rainmaker forecasts supply and demand at granular levels in order to optimize price. Consequently, nine of the 13 publicly traded multifamily REITs in the U.S. currently use Rainmaker's LRO product. Similarly, Rainmaker is the only company offering a solution to the gaming industry that optimizes on total customer value, not just room revenue. Because of this critical differentiator, Rainmaker delivers unsurpassed ROI benefits to its customers and enjoys a significant majority of the market as customers.
“It is an extraordinarily great time for Rainmaker to be serving the multifamily housing industry, where the key to revenue growth is accurate demand forecasting and optimal rent setting to minimize vacancy loss and maximize revenue. Owners and operators are adopting revenue optimization technology at a record pace and it is projected that four out of five professional management operators will adopt revenue management software in the next three years,” said David Su, vice president, NVP.
About The Rainmaker Group
The Rainmaker Group is the market leader in profit optimization solutions for the Multifamily Housing and Gaming & Hospitality industries. Rainmaker software, coupled with professional business consulting services, enables multifamily housing operators to maximize revenue from apartment leases and helps operators of casino hotels and other hospitality enterprises secure the most valuable customers to increase their profitability. Rainmaker is a Microsoft Gold Certified Partner and leverages cutting-edge research in order to bring customers the most sophisticated solutions to their revenue management challenges. Adopted by industry leaders and niche players alike, Rainmaker solutions provide clients a strategic advantage in achieving the highest profitability from their assets. Multifamily housing clients include leaders such as Archstone, AvalonBay Communities, Equity Residential, Gables Residential, Post Properties, Mid-America Apartment Communities and more. Gaming/Hospitality clients include leading casino/hotel organizations such as Atlantis The Palm Dubai, Caesars Entertainment, MGM Resorts International, Omni Hotels & Resorts, Wynn Las Vegas and many others. Headquartered in northern Atlanta, GA, Rainmaker is an innovator and thought leader in the highly specialized revenue optimization field. For two consecutive years, Inc. magazine ranked Rainmaker among America's top 5,000 fastest-growing, privately held companies. For more information, visit http://www.LetItRain.com.
About Norwest Venture Partners (NVP)
Norwest Venture Partners (NVP) is a multi-stage investment firm that has partnered with entrepreneurs to build great businesses for more than 50 years. The firm manages more than $3.7 billion in capital and has funded over 500 companies since inception. Headquartered in Palo Alto, California, NVP has subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. NVP makes early to late stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. For more information visit: http://www.nvp.com.
For Further Information Contact:
Nancy Nevins, Director of Marketing
The Rainmaker Group
Marlena DeFalco, Account Manager
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