Austin’s Iconixx has big plans

The com­pany, which helps com­pa­nies track worker per­for­mance, raises $4.7 mil­lion.

Austin American-Statesman - - BUSINESS - By Lori Hawkins lhawkins@states­man.com Iconixx

Rather than giv­ing an­nual raises, many busi­nesses are mov­ing to­wards per­for­mance­based salary in­creases, which in­volves the close track­ing of each em­ployee’s work.

That’s cre­at­ing a grow­ing mar­ket for com­pa­nies like Austin-based Iconixx Soft­ware Corp., which sells soft­ware that man­ages sales com­pen­sa­tion, bonus and salary man­age­ment for busi­nesses.

Iconixx, whose cus­tomers in­clude Blue Cross Blue Shield, Nokia Corp. and Burkhart Dental, said Fri­day it has raised $4.7 mil­lion to pur­sue new cus­tomers.

The lead in­vestor in the deal was Bal­last Point Ven­tures of St. Peters­burg, Fla.

“In­cen­tive com­pen­sa­tion is not just for sales­peo­ple any­more,” said Der­rik Dey­himi, CEO of Iconixx. “Be­cause the econ­omy has been so tough, com­pa­nies don’t just want to give ev­ery­body big base salaries and an an­nual 4 per­cent raise. They keep their base fixed and cre­ate in­cen­tives based on per­for­mance.”

Iconixx was cre­ated in 2010, when the com­pany ac­quired the com­pen­sa­tion soft­ware di­vi­sion of Austin­based nGen­era Corp. for an undis­closed amount. The deal was car­ried out with fi­nan­cial back­ing from KBH Ven­tures LLC, an Austin-based pri­vate eq­uity firm.

The soft­ware-as-a-ser­vice mar­ket for per­for­mance man­age­ment soft­ware is more than $150 bil­lion, and the in­cen­tive com­pen­sa­tion is one of the fastest grow­ing mar­ket seg­ments, ac­cord­ing to in­dus­try re­search groups.

The mar­ket has caught the at­ten­tion of ma­jor soft­ware play­ers, in­clud­ing IBM Corp., which this year pur­chased Vari­cent Soft­ware, a Toron­to­based provider of an­a­lyt­ics soft­ware for com­pen­sa­tion and sales, for an undis­closed price. Other com­peti­tors

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