Austin Ventures has committed up to $50 million to form Brazos Software Corp., an acquisition platform focused on the enterprise software sector. The company will be run by Tivoli Systems vets Scott Harmon and Sean Fallon.
Austin Ventures (“AV”), one of the nation’s leading venture and growth capital firms, announces the commitment of up to $50 million of equity capital for the creation of Brazos Software Corporation (“Brazos”). Brazos will acquire and operate businesses in large and established sectors of enterprise software. The new venture will concentrate on acquiring and strategically expanding well-established software companies with track records of product success and long-term customer relationships. Brazos has been formed in partnership with local software executives Scott Harmon and Sean Fallon. Mr. Harmon, CEO of Brazos, is a software industry veteran having held various leadership positions with industry-shaping companies such as Tivoli Systems, Motive Communications, and AlterPoint. Mr. Fallon, COO of Brazos, was recently Senior Vice President of Trilogy, Inc. where he invested more than $100 million of capital and led Trilogy’s successful M&A initiatives. Visit www.brazossoftware.com for more information.
“With Scott and Sean, we believe we have put together a truly dynamic and complementary software executive team,” said Michael Rovner, AV Partner. “Between Scott’s track record of growing innovative and category-leading software companies and Sean’s history of acquiring and efficiently operating software businesses, we have the right leadership team to create a highly successful software company.”
Mr. Harmon has nearly twenty years of senior leadership experience with both venture-backed as well as large public company enterprise software companies. Most recently, Mr. Harmon was CEO of AlterPoint, a venture-backed category leader in Network Configuration and Compliance Software, where he helped orchestrate a strategic sale to Versata earlier this year. Prior to that, Mr. Harmon spent nine years as co-founder and CEO of Motive Communications, a leading provider of management software to broadband and consumer electronics companies, where he helped grow the business to nearly $100 million in revenue and completed a successful initial public offering (“IPO”) in 2004. Prior to Motive, Mr. Harmon served in various leadership roles helping to define and shape the product and growth strategies of Tivoli Systems, a category leader for enterprise system and network management software and services that completed an IPO in 1995 and was later acquired by IBM.
Mr. Fallon spent the last ten years in senior executive positions at Trilogy, Inc., a privately held software company. In 2004, Mr. Fallon became Trilogy’s CFO and soon after launched Trilogy’s M&A program. Trilogy brought an innovative approach to acquiring and profitably growing proven software solutions used by many of the world’s largest organizations. Under Mr. Fallon’s leadership, Trilogy successfully acquired and integrated ten enterprise software companies. Prior to joining Trilogy, Mr. Fallon was Vice President of M&A for a NYSE-listed financial services company. Mr. Fallon began his career at Price Waterhouse, where he provided operational and strategic consulting to underperforming companies.
“The partnership with AV is a unique opportunity,” said Mr. Harmon. “AV has made a significant investment commitment to Brazos. They also bring a deep understanding and successful track record of building a company’s long-term operating success while simultaneously generating superior returns for the company’s investors and shareholders.” Added Mr. Fallon, “I am looking forward to teaming with Scott and AV to build a great software company.”
“As with past CEO-in-Residence partners, our team will pursue opportunities to invest in proven business models where owners see the potential to accelerate growth opportunities by blending their knowledge and strengths with those of Scott, Sean, and AV”, said Craig Milius, AV General Partner. “This has proven to be a winning combination in our previous executive relationships, and we look forward to working with business owners who will be motivated by the opportunity to partner with Brazos.”
About Austin Ventures
Austin Ventures (“AV”) has worked with talented entrepreneurs to build valuable companies for nearly twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. With an investment focus on business services and supply chain, financial services, media and information services, software and Internet, and Texas special situations, AV invests at all stages of company development, from $100,000 in “planned experiments” in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV’s strategy is to partner with talented executives and entrepreneurs through its CEO-in-Residence and Entrepreneur-in-Residence programs. Visit austinventures.com for more information.