NetDocuments has raised $25 million for its document-management tool

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NetDocuments, the leader in cloud-based document and email management, announced a strategic partnership with Frontier Capital, securing a $25 million equity investment to accelerate NetDocuments’ increasing growth across the legal market. “It’s exciting to see the rate of adoption increase in recent years as law firms begin to move from traditional, server-based document management to what most now view as the modern document management platform,” said Ken Duncan, CEO, NetDocuments. “The partnership and investment with Frontier will allow us to not only continue our growth with a high degree of customer service, but also provides us with the resources to capture a considerable portion of the market, as firms increasingly decide to switch to the cloud.”

NetDocuments, a provider of document- and email-management services for law firms, has picked up a $25 million round of investment. The company offers its document-management software as a service (in other words, a software-as-a-service model) in exchange for subscription fees. Law firms and financial services companies are its primary users, according to the company’s website, although real estate, health care, and accounting firms also work with it. It says that it has hundreds of customers in more than 140 countries and that it finds use from almost 10 percent of the Am Law 100, an annual list of the most profitable law firms in the country. Translation: Eight or nine of the top law firms in the U.S. use NetDocuments. The company says that the majority of its market opportunity is in legal documents, since it has no direct cloud-based competitors tailored to law firms. Many customers, it says, are switching to NetDocuments after using more generic document-management services from HP/Autonomy, OpenText, and Worldox. NetDocuments says that it is profitable, with revenue growth of 35 percent annually. The investment comes from Frontier Capital, which is in Charlotte, N.C. Technically, this is the company’s fourth (Series D) round, after several investment rounds more than 10 years ago in a previous version of the company known as SoftSolutions. However, the company says that it has taken zero investment in the past decade and that this round pays off the initial (minority) investors.

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