Nuevora Raises $2.25M For Big Data Analytics
May 7, 2012
Nuevora Inc., which aims to help customers make sense of the massive amounts of data their companies are generating, raised $2.25 million in Series A funding from Fortisure Ventures, with another $1.75 million in commitments from the firm. Valuation is not disclosed.
The four-year-old company is developing a set of cloud-based applications to help customers cut through masses of data and find the right metrics to apply to whatever problem they're trying to solve.
A top 10 casualty insurer, for instance, uses Nuevora to figure which types of customers account for the most churn--which ones are the biggest risks, the top reasons why they are leaving and the types of marketing campaigns that the insurer could run to help stop them, according to founder and Chief Executive Phani Nagarjuna.
A large book retailer, meanwhile, uses Nuevora to analyze customer behavior and purchasing patterns to see which ones are more likely to purchase an electronic reader.
Rather than boiling the ocean of data that companies collect, Nagarjuna said, Nuevora narrows it down, using its algorithms to get "very early signals on which is noise and which is music." Then it hones in on the most promising signals to solve the customer's problem.
"True analytics requires human prowess and high-end math," he said. "Business intelligence can tell me what has happened in your business…but it does not tell you why customers in that segment left or what you could do to bring them back, to make your offerings more attractive."
Nuevora currently has about 10 customers and is developing a series of generic applications that it can take across a range of industries. The more problems it solves for customers, the more intellectual property it builds up, Nagarjuna said.
The new money will be used to expand research and development and hire more people. The company is looking both for data scientists and for consultative salespeople who can help customers define the problems they're trying to solve, neither of which are easy to find, Nagarjuna said. He expects to add about 20 people this year to the 30 or so employees he already has.
Competitors include consultants like Deloitte Development LLC and off-shore analytics providers like Mu Sigma, although the industry is immature, Nagarjuna said, and "we think our technology is a game-changer."
Fortisure founder and Chief Executive Mani Subramanian is on Nuevora's board--he and Nagarjuna got to know each other when Nagarjuna worked for Subramanian at a previous company. Nagarjuna also worked at Siebel Systems, which is now part of Oracle Corp.