Austin’s Iconixx has big plans
The company, which helps companies track worker performance, raises $4.7 million.
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