Digital Fuel Closes $8 Million Series C Round.

Digital Fuel, provider of the ServiceFlow™ platform for real-time management and automation of IT and business services, has secured $8 million in new funding. Benchmark Capital and Sigma Partners have joined previous investors Israel Seed Partners and Apropos IT Ventures in this Series C round. As a result of the financing, Mark Kremer, general partner at Benchmark Capital, and Peter Solvik, managing director at Sigma Partners, will join Digital Fuel's board of directors.

Digital Fuel's ServiceFlow software platform enables both enterprises and service providers to effectively manage the cost and performance of sourced IT and business services. ServiceFlow allows enterprises to ensure service compliance and reduce risk, while lowering governance costs. Service providers use ServiceFlow to manage and automate service delivery and to provide their clients with a real-time "service excellence" dashboard. Such advanced management capabilities are increasingly important to the continued success of the sourced services market.

Digital Fuel will use the new investment to expand its global sales and marketing efforts and accelerate product and business development initiatives. Digital Fuel's customers include General Electric, Bank of America, DoubleClick, USI, Sun Microsystems and O2, a provider of mobile services in the United Kingdom. Strategic business partners include SAP, CSC, and a network of resellers and consultants.

"Sigma Partners is always searching for innovative companies that have a solid product strategy and a keen understanding of customer requirements," said Peter Solvik of Sigma Partners. "Digital Fuel has built a compelling solution that allows its customers to track and manage enterprise services performance, something that has become increasingly important in a growing outsourcing-focused market."

Benny Lehmann, chief executive officer of Digital Fuel, added: "This latest investment round is a clear endorsement of our business model and the value in managing enterprise services. In addition, we are very pleased to have Mark and Pete join the board. Their experience, leadership and industry relations bring new capabilities to the Digital Fuel team that will allow us to achieve our vision and business objectives.

About Benchmark Capital

Benchmark Capital was founded in 1995 to help talented entrepreneurs build great technology companies. Benchmark's partners take a team-oriented, labor-intensive approach to venture investing to deliver a superior level of service to the firm's portfolio companies. Benchmark's portfolio includes franchise companies such as Ariba (Nasdaq: ARBA), eBay (Nasdaq: EBAY), Juniper Networks (Nasdaq: JNPR) and Red Hat (Nasdaq: RHAT). Managing more than $2 billion in committed venture capital, Benchmark focuses on investing in entrepreneurs with original ideas. For more information on Benchmark, visit its web site at www.benchmark.com.

About Sigma Partners

Sigma Partners, a high technology venture capital firm, helps entrepreneurs transform ideas into substantial, profitable businesses. Founded in 1984, Sigma Partners has over a billion dollars under management, and invests across the US from three offices located in Menlo Park and San Ramon, CA and Boston, MA. Its partners have experience as successful CEOs, entrepreneurs and technologists. With this deep operating and technical insight Sigma Partners helps build teams and strategies that produce sustainable value and successful outcomes. Sigma Partners was an early investor in companies such as Cascade, Wellfleet, Vignette, StorageNetworks, Internet Security Systems, Verifone, Octel, Clarify, Electronic Arts, and many other successful firms.

About Digital Fuel

Digital Fuel is the leading provider of business service management (BSM) software solutions, helping service providers and enterprise service organizations manage the performance, financial, and regulatory aspects of IT, telecommunications, and business process services.  Digital Fuel has the largest deployments for SLA management and service cost management in the world, with thousands of concurrent users, SLAs, KPIs, metrics, cost formulas, and pricing rules.  With Digital Fuel’s patented visual approach, our customers are deployed rapidly to quickly drive business value from automating the management of service offerings, agreements, service cost, and performance with their service customers and vendors.  ServiceFlow manages billions in business and IT services at companies and governments around the world such as Procter & Gamble, General Electric, Cummins, Capgemini, BT, IBM, SITA, Siemens Business Services, O2, Atos Origin, Telefonica, Transport of London, CSC and many others.  Digital Fuel is headquartered in San Mateo, California, with offices across North America and Europe.  Learn more at http://www.digitalfuel.com.