Last week, we spoke with Andrzej Nedoma, CEO of XTRF, a provider of translation project and process management software based in Poland. Nedoma told us that XTRF signed a “cooperation agreement” with Experior, a venture capital (VC) firm that will provide around US$2 million for product and company development. According to its co-founder Marzena Bielecka, Experior’s principals have long worked in investment banking and private equity. The firm invests in early-stage companies in Poland. We asked our usual questions about:

• The investment? Experior is XTRF’s first external capital source. Until now, the company has bootstrapped its growth from product sales after being spun off in 2005 from LidoLang Technical Translations, a language service provider (LSP). Two million dollars is a welcome investment in a region where the cost of development is lower than in the U.S. or Western Europe.
• Financial performance? As with most privately-held companies, Nedoma wouldn’t reveal current, past, or projected revenue. However, he did say that XTRF has grown 100% annually for the last few years. The company sells mostly to LSPs and corporate translation departments in Europe, but has also sold solutions in another very competitive market, the United States. Nedoma is confident that his strategy and the investment will allow the company to continue its current growth rate.
• Control? Experior gets a minority stake in the company but XTRF management shareholders keep full control of the company and by far the majority of shares. While there will be no change in the company’s executive management, Experior will take a seat on XTRF’s advisory board. Nedoma expects to benefit from the venture fund’s financial and operational experience, thus pointing to a close advisory relationship. More.

See: Common Sense Advisory

Subscribe to the translation news daily digest here. See more translation news.