Capital Still Flowing into Talent Management - Cornerstone OnDemand Raises $32M

Today, Cornerstone OnDemand announced raising $32 million in new venture capital.  The capital will be used  primarily to add staff, build out sales and marketing, and grow internationally. 

Cornerstone OnDemand is a vendor that has gone mostly under-the-radar in talent management but has probably done one of the best jobs of all the pure-play learning management vendor to become a “talent management suite” vendor (most likely because they don’t have a lot of the legacy issues facing Saba and SumTotal). 

As I’ve stated in the past, capital is extremely critical in the talent management market right now.  Capital can be expensive and the financing route a company takes will ultimately shape their future.  Although, capital is freely available in the market today, whether from venture capital, private equity, debt financing, or the public markets (via IPO), the price of the capital is vital to future company health.  It is  important that the capital structure matches the strategy and growth expectations without diluting or disincenting employees or existing shareholders. 

September 17th, 2007