# Covergence

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/covergence

- Industry: Software
- Headquarters: Maynard, US
- Website: www.covergence.com
- Total disclosed funding: $31M
- Latest round: Series D (Nov 7, 2007)
- Investors on record: 3

## About

Covergence is a company specializing in the online sale and leasing of domain names, focusing on simplifying transactions for customers and providing secure payment options.Founded in 2003 in Maynard, US, Covergence specializes in domain name transactions. The company was acquired by Acme Packet in a TRADE SALE for USD 22.8 mn on April 30, 2009. No significant pivots in business strategy have been documented.Covergence.com specializes in the online sale and leasing of domain names, focusing on simplifying the transfer process for customers. Their core offerings include the direct sale of domain names, such as covergence.com, available for a one-time purchase price of USD 3,960, as well as a Lease to Own option priced at USD 99 per month. This dual approach caters to a diverse client base, including businesses, entrepreneurs, and individuals seeking to establish an online presence. The company's services emphasize secure payments, fast transaction processing, and free transaction support, ensuring a user-friendly experience. Covergence.com serves customers in various geographical markets, making domain names accessible to a global audience while providing local currency options at checkout to enhance convenience.The revenue model for Covergence.com is primarily based on domain sales and leasing transactions. Customers can either purchase domain names outright or opt for the Lease to Own structure, which allows for monthly payments. For example, a business looking to secure the domain covergence.com could either pay the full amount of USD 3,960 upfront or choose the leasing option, resulting in a monthly transaction of USD 99. This model positions Covergence.com to engage directly with consumers and small to medium-sized enterprises, effectively serving both B2C and B2B markets. The company emphasizes secure transactions and hassle-free payment processes, which contribute to customer satisfaction and potentially increased repeat business. Revenue generated through these transactions reflects the demand for premium domain names in an increasingly digital marketplace.Covergence plans to leverage recent funding from its acquisition by Acme Packet to enhance its product lineup and improve service delivery. New product offerings are being developed to streamline domain leasing processes, with anticipated launches in the next fiscal year. Furthermore, the company aims to expand its market reach beyond the US, targeting Europe and Asia by the end of 2010, to tap into growing demand for online domain services. The strategic focus will be on enhancing user experience and increasing transaction efficiency.

## Funding rounds

- Series D, Nov 7, 2007, $15M — Highland Capital Partners, Globespan Capital Partners, North Bridge Venture Partners
- Series B, Jun 13, 2005, $10M — Highland Capital Partners, North Bridge Venture Partners
- Series A, Jan 1, 2004, $6M — Highland Capital Partners, North Bridge Venture Partners

## Investors

- Highland Capital Partners (https://capitalatlas.ai/funds/highland-capital-partners) — Series A, Series B, Series D
- North Bridge Venture Partners (https://capitalatlas.ai/funds/north-bridge-venture-partners) — Series A, Series B, Series D
- Globespan Capital Partners (https://capitalatlas.ai/funds/globespan-capital-partners) — Series D