April 1, 2019

CXO Nexus Announces the Close of Its Series A Funding Round with Edenbrook Capital New York

CXO Nexus, the company that accelerates the Intelligent Enterprise by applying AI & Machine Learning to Financial Systems of record, announced today it has completed its Series A round of financing with Edenbrook Capital, LLC.

The CXO Nexus CIO and CMO Executive InCight™ platform provides real time visibility into vendor spend by role & function that is leveraged by organizations for spend optimization, peer comparison, market insight and cross business collaboration. The investment will help the company accelerate product development and expand its sales and marketing efforts. Concurrent with the capital raise, Jonathan Brolin of Edenbrook Capital joined CXO Nexus’ Board of Directors. CXO Nexus is led by a team of seasoned executives that have dealt first hand with the systemic challenges of Vendor Spend visibility and optimization, along with extensive experience working with the three core constituencies served: The Global 5000, Institutional Investors and Vendors/Suppliers. “It is clear that CXO Nexus is solving a big pain point for the C Suite, at the right time,” said Jonathan Brolin, Managing Partner, Edenbrook Capital. “CXO Nexus’ vision is compelling; its intuitive real-time visibility that eliminates the obfuscation all companies deal with when it comes to their vendor spend. CXO Nexus has proven that it has the experience and ambition to make Intelligent Spend Management an organizational standard. I am very impressed with the momentum and execution of this team. Ken Male is a very respected leader in the IT space with a history of entrepreneurial success. I’ve known Ken for over a decade and watched him turn this vision into a category-defining company that has already delivered great value to the market.” “We are very pleased to welcome Jonathan to the Board and are confident that his investment, expertise and in-depth knowledge of the business and our industry will strengthen our company. We look forward to collaborating with the Edenbrook teamto help create value for all shareholders,” said Ken Male, CEO of CXO Nexus.

2019 is off to a fast start:

CXO Nexus is the first non-SAP owned entity to join the SAP Business Network, a developer focused platform that SAP is using to provide secure access and context to SAP application data. For CXO Nexus SAP has started with SAP Ariba and are in process of adding Field glass & Concur to provide complete, personalized, and actionable intelligence for total customer spend. CXO Nexus is an overlay and provides quick time -to-value as a result of the access the SAP Business Network delivers. SAP commenced the resell of the InCight Platform in Q1.  In February CXO Nexus was named a Top 1O AI Platform for 2019 by CFO Tech Outlook.

This week CXO Nexus will be the featured on the main stage as the Intelligent Spend Management partner at SAP Ariba Live in Austin, TX, where CEO Ken Male will join SAP Ariba’s Chief Product Officer, Darren Koch, during his opening Leading with Impact keynote, which highlights Use Cases for: Intelligent Spend Management, Business Unit Collaboration, and identifying Unmanaged Spend.

CXO Nexus’ Advisory Board members include Gregory Tennyson, Head of Global Corporate Services at VSP Global, Mike Azarian, former Chief Information Officer at Citibank, Frank Palumbo, Senior Vice President at Cisco Systems. Donna Woodruff, Senior Director Service Enablement & Intelligent Optimization at Cox Automotive, John Neeson, Co-founder of Sirius Decisions, Randy Seidl, CEO of Revenue Acceleration & Rahul Auradkar, senior tech executive.

As CEO, Ken Male summarizes, “At CXO Nexus,our mission is to Accelerate the Intelligent Enterprise. The Edenbrook investment, along with the diverse talents and perspectives of our Advisory Board members, combined with the strong partnership with SAP, allows us to greatly expand the adoption of AI based Spend Analytics within the enterprise.”

About CXO Nexus

CXO Nexus applies AI and Machine Learning to the daunting tasks of classifying, standardizing, and normalizing vendor spend data. Organizations can now control costs more effectively manage their vendor relationships and leverage a platform designed to enable collaboration across the business.Contact us for a demo and to sign up for a free trial at 833-CXO-DATA or sales[at]cxonexus.com or visit us at cxonexus.com. For press inquiries, contact salger[at]cxonexus.com.

About Edenbrook Capital

Edenbrook Capital, founded by Jonathan Brolin 2011, takes a private equity approach to public markets, principally through concentrated, long-term investments in small and mid-cap companies. Edenbrook will also apply its industry experience to discrete private investments.

CXO Nexus – April 2019 Press Release
Published: April 1, 2019
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Cross Business Collaboration

You lead IT spend and determined that the best solution for your company’s overall data mining needs is a solution with DataFox for $1.2 million.

Unbeknownst to you, your European subsidiary purchased data mining solutions from Rialto for $900,000.

You know that the solution your department purchases and manages could solve for the European marketing’s team needs.

With this knowledge and insights, you can streamline your overall company spend on data mining and marketing and get even better solutions and value out of your vendor, for less.

Eliminate Excess Vendors

Using the CXO Nexus InCight™ dashboard reveals that you are paying four unique security companies, three of whose contracts you believed had expired.

Their contracts had automatically rolled over and you realize that you are paying for redundant vendor services.

Ensure Regulatory Compliance

You realize you are spending 800% more on a regulated vendor than you were aware, due to multiple resellers and geographical spend discrepancies.

(Not uncommon).

You are now at risk with regulatory agencies for inaccurately reporting and for spending more on a riskier vendor.

Identify Business-Led Spend

Business-led IT investments can be additive (they don't divert money away from the CIO's budget) and they often focus on collaboration tools, analytics and technologies to engage customers or improve, whether it's a new CRM tool or social media analytics.

If spent wisely, these investments can give a competitive advantage to a specific part of the business, whether finance, marketing or sales.

Business leaders are seeking out their own tools to analyze and present data. But these tools are only valuable if employees have the skills and judgment to use them effectively for decision making. 

As long as the CIO retains oversight and can educate the rest of the business about the risks, it can often be a better, cheaper way to achieve the goals of the IT department, especially when it comes to new innovations.

John LindsayChief Financial Officer

John Lindsay brings over 35 years of experience at Financial and Research Enterprises. He served as EVP and CFO of The451 Group Research and has held senior finance roles at AMEX & Saatchi & Saatchi.

KEN MALEFounder & CEO

Ken Male, CEO - has over 25 years of leadership positions in IT and Internet Research working across the C suite, from Gartner to Jupiter to Apptio. Founder & CEO of IT Research firm TheInfoPro (TIP), acquired by The451 Group in 2011. Prior to that, Ken was SVP of Global Sales for Jupiter Research and was active in their 2000 IPO. He led Benchmarking & Data at Apptio from 2013-2015.

John LarkPresident

John Lark’s in-depth background includes business and technical leadership, marketing strategy and tactical marketing know-how, SaaS and Cloud innovation and evangelism, marketing strategy, API development, and collaborative growth via partner engagement and development to the CXO Nexus team.
John was formerly Global Vice President of ISV Business Development at SAP Ariba. Prior to that, as the Vice President of Business Development and Partner Cloud Ecosystems at SAP Ariba. John was responsible for developing and launching a new business inside of SAP that melded cloud solutions with partner ecosystems and expertise, API's, and data exchanges that delivered innovative global capabilities to customers that ran the gamut of delivering core enterprise fundamentals to analytics and machine learning to Artificial Intelligence (AI) and bots. John’s efforts led to corporate-wide scale-ability in operations as well as an innovative profit model. John bridged across internal and partner executives and among diverse roles such as Finance, Operations, Legal, Controlling, Product Development and Sales.

Monthly Expense Reduction Opportunities

A Fortune 500 spends $1M+ on a team that includes 12 data scientists + hired consultants to understand spend data. After 3 months, the data is inaccurate, un-actionable and only relevant at that moment in time.

With CXO Nexus:

> Redundant spend on Cisco is identified as multiple resellers are identified as selling across multiple departments.

> Vendor Rollup feature reveals you’re spending $7M more with Dell than you thought because you didn’t realize that Dell acquired VMWare and you weren’t leveraging your combined spend with both companies.

> This Visibility gives you the negotiation leverage for a discount saving you millions.

> Your cost savings from these insights enable investment in the latest Cybersecurity and mobile, driving higher revenues and performance

Negotiation Leverage

You negotiate with Pivotal believing that you spend $1.5M each year with them per year.

You learn that Dell has acquired them, and between Dell, EMC, VMWare and Pivotal, that you are spending an annual $14M with all of them under the Dell umbrella.

You bring this leverage into your negotiations and drive much better terms across all of these vendors.

Peer Comparison

You are in the midst of a major cloud migration.

You are considering a serious upgrade to your systems.

You are assessing whether to stay committed to your primary storage vendor, but through the CXO Nexus Peer InCights, you see that spending is down significantly with this vendor by your peers, and that many are investing in a newer solution from another vendor.

This performance insight spurs you to research further into competitive developments, patent filings and macro trends.

Real Time Spend Categorization

You spend $10M/year with Cisco, but you have no idea how that spend breaks down. 

Your procurement system identifies this spend as networking, but you realize that 20% of that spend is on networking, 15% is on Wireless and Mobile, 40% is on security, 17% is on Data Centers, and 8% is on Analytics.

This information will change your needs analysis and the way you negotiate with your vendors in the upcoming year.

Reduce Vendor Risk

You have identified vendors who are no longer in compliance with your regulatory needs, but because you have not audited your vendor list recently, you realize that several of your vendors no longer satisfy your security requirements.

You realize that some of these contracts extend out for years.

You can begin mitigating this risk by shoring up other vendors who meet your risk standards.