DataSync Raises $1.2 Million to Capture Small Business Software Consolidation Market

SIOUX FALLS, S.D. -- (BUSINESS WIRE) -- DataSync Corporation today announced its first round of venture funding, with an infusion of $1.2 million led by members of Rain Source Capital, a respected, early-stage investment group. The new funding will enable the company to expand the services and features of its rapidly growing DataSync Suite for small business, found online at www.DataSyncSuite.com.

With more than three thousand registered small business users today, DataSync is poised for leadership in the emerging software-as-a-service (SaaS) small business marketplace. DataSync is the developer of DataSync Suite™, a small business software platform that integrates core applications including SugarCRM, Quickbooks®, Zimbra® (mail/calendaring) and Drupal® (website management) into an open source software-as-a-service web portal. DataSync Suite leverages the benefits of open software to provide an easy-to-use, single user sign-on, data syncing between applications and a user administration console, all as a cost-effective cloud-based service.

Today, DataSync also announced its partnership with SugarCRM, the open platform on which the DataSync Suite is built: http://www.datasyncsuite.com/media/press-releases/october-6-2009/sugarcrm-partnership.

Through its partnerships, DataSync helps small businesses focus on their customers by connecting email, contacts, calendars, accounting software and websites to a central Customer Relationship Management (CRM) system. The software eliminates dual-entry, simplifies order processing and automates sales processes. DataSync’s entire software suite is a cloud-based service that is accessible from any web browser or mobile device, and can be connected to desktop applications such as Microsoft Outlook. Overall, DataSync Suite eliminates costly and complicated internal IT infrastructure for small businesses and provides them with a single robust software platform on which to run their business.

“The additional funds will enable DataSync to continue to extend integration of key business applications including SugarCRM, QuickBooks, Zimbra and Drupal, while offering a hosted solution aimed at the small business marketplace,” said Mike Vetter, co-founder and CEO at DataSync. “This new financing will enable us to strengthen and expand our infrastructure to support the innovations and features demanded by our rapidly growing user community.”

“I am excited to support DataSync in its efforts to develop a hosted SaaS solution specifically targeting small businesses, because small businesses are having a very challenging time of managing and integrating today’s rapidly changing software and IT services,” stated Craig Anderson, Chairman at DataSync. “DataSync has proven it can meet the growing demand for integrated small business software by assembling over three thousand users in a relatively short period of time. The Board is confident that the DataSync management team has the passion and experience needed to propel DataSync into a leadership role in the small business SaaS market.”

About DataSync

DataSync Corporation was launched in 2005, and is focused on delivering open source small business consolidation software. In 2009, DataSync released its flagship product, DataSync Suite™, to a large audience of developers and businesses. The company now has thousands of users around the world, and has built a global partner network providing services and solutions based on DataSync Suite™.

For more information visit DataSync at http://www.datasyncsuite.com.

These materials contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding but not limited to expected financial results and financing plans, market size and growth, and company strategy. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to, risks that our products may not receive the level of market acceptance anticipated, anticipated funding may prove to be unavailable, we may not be reimbursed for a sale or reimbursed at a price favorable to us, or intense competition may harm our results and general economic conditions change in a way that is not favorable. This list of factors is not exclusive. Accordingly, actual results or performance may differ significantly, both positively and negatively from forward-looking statements. DataSync Corporation assumes no obligation to update any forward-looking statement contained in this press release.