I found the $30M-in-revenue number in Byte and Switch:

Stratify, a profitable privately held firm founded in 1999 and headquartered in Mountain View, Calif., is predicted by Iron Mountain to be on track for $30 million revenues this year. It has around 110 customers and 185 employees, about half of whom reside in Bangalore, India. Iron Mountain says Stratify’s profit margin is now between 20 percent and 30 percent, but the new parent plans to improve on that. Earnings from Stratify, however, will be minimally accretive to Iron Mountain’s earnings in the first quarter of full ownership, execs say.

Separately, PE Hub reported that Stratify “has raised just over $40 million since 1999, when it was known as Purple Yogi. This includes Series C and Series D infusions in 2000 at a post-money valuation of approximately $65 million and $113 million, respectively.”

Hope that helps,
Aaref

I am also curious about the $30 million revenue number for Stratify. You say it came from the CFO. Do you have a press release or some other source for this statement. Thanks, Ted Arbuckle

I recommomend the Kenyon Group to advise you if you are considering selling your company. We are a firm that has been very active in the litigation support, legal technology, and legal staffinig space for the past 3-4 years. A couple recent transactions are CaseLogistix and SV Technology (LawPort). Our web site is http://www.kenyongroupinc.com. We are finalizing a redevelopment and upgrade to the site, which should be completed by the end of the week. Please shoot me an email if you want to discuss your situation.

Regards,
Ted Arbuckle
ted@kenyongroupinc.com

Two more questions,

Based on your extensive knowledge of this industry (I read your bio on Clearwell’s website) which would you think are the most prominent I-Banking firms representing clients in the $20-$30 Mil range in e-Discovery/Imaging?

Also, I am also looking for VC’s who would have invested substantially in this area. Any idea which ones I could look at?

Again, thanks for your response.

There are 3 main reasons why I think this is a good multiple for a business like Stratify:

1. It’s services, so gross margins are only 50-60% and, to grow, you need to hire people, which means you cannot grow as fast as a product company;

2. The business is transactional, not relationship based. Law firms use Stratify on a case, then don’t call till the next case. So there’s not a continuous revenue stream, unlike a product company which charges annual support;

3. The business is lumpy, meaning sales are unpredictable since they depend on when law firms have cases, which cannot be predicted. That means Stratify can take less debt, again reducing equity value.

On Stratify’s revenue, I believe Iron Mountain — it is a public company and its CFO would not lie. For other acquisitions, I do not have any ideas beyond Google.

Hope that helps,
Aaref