With budget cuts and layoffs across the board in all spectrums of our economy, SaaS solutions that reduce IT costs and simplify running a business are standing recession-proof.
TopSchool, an SaaS provider of adminstrative solutions for small to mid-size higher education institutions, today announced, it has raised $7 million in VC funding. This second round of funding was led by New World Ventures and joined by Access Venture Partners, Education Sales Management and Alsop Louie Partners.
It’s quite clear why a company like TopSchool could raise such a large amount of cash. According to research firm IDC, spending on SaaS solutions, (also referred to as Cloud Computing), is expected to reach $42 billion by 2012.
SaaS is saving businesses and institutions money. In the case of TopSchool here,TopSchool manages the software for its customers cutting maintenance and IT costs within the institutions. It’s a subscription based service offering solutions for all areas of the education system, from academics to financials. And with current budget cuts, solutions like this could perhaps save teachers their jobs.
TopSchool, based out of Denver, CO, closed a $3.2 million first round of funding in, June of 2008. TopSchool plans to use this second round of capital to increase technical support along with expand account management for its clients.
