Demandware IPO Latest in Series of Boston Tech Breakouts

Ho-hum, another Boston-area technology IPO. This time it’s Demandware (NYSE: [[ticker:DWRE]]), the Burlington, MA-based digital retail and commerce firm.

I am being ironic, because, like TripAdvisor (NASDAQ: [[ticker:TRIP]]) and Brightcove (NASDAQ: [[ticker:BCOV]]) before it, Demandware’s going public has not gotten as much in-depth attention from the press and innovation community as it probably should have. This is one of those companies that has kept its head down and quietly focused on building its business for a long time.

Sure, we know that the company priced its shares yesterday at $16, well above its expected range, and its stock price in initial trading today was up above $24 as of 10:30 am ET. Its valuation was around $450 million at its IPO price. Let me say that again: $450 million, and climbing.

Demandware (note lack of camel case in its name) started in 2004 and is led by founder and chairman Stephan Schambach and CEO Thomas Ebling. The company was venture-backed by North Bridge Venture Partners and General Catalyst Partners.

What Demandware does is provide a software platform and services to help brands and retailers create digital shopping sites and interfaces across the Web and mobile devices. Its customers include Columbia Sportswear, Crocs, Fila, Kate Spade, L’Oréal, Marks & Spencer, and Nine West.

We’ll be keeping a closer eye on this one, and the other recent Boston-area IPO companies, to see what their impact is on the local community and beyond.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.