Online marketing and data analysis software provider Mercent Corp. has raised $4 million in an inside round of financing, according to a filing with the Securities and Exchange Commission.

Citing a need for flexibility as it continues to expand its e-marketing business, Mercent rejected a larger term sheet from an outside investor in favor of a $4 million "A prime" up-round from Madrona Venture Group and the Hillman Co., according to Mercent Chief Executive Eric Best.

In November 2005, Best said that Mercent would seek a $6 million to $10 million Series B round, VentureWire reported.

"When we looked at the capitalization options that were available to us last year, we ultimately decided that a smaller inside round would be sufficient to achieve our operational goals for 2007," Best said.

Mercent sells a software service that helps retailers promote products online by placing those products across marketing channels such as Amazon.com Inc., Shop.com and other online retail sites, Best said.

In addition, the company's software integrates directly with back-end line-of-business software for enterprise resource planning. "For the first time merchants can automate their online advertising activities based on what's happening in their warehouse and what's happening in their brick-and-mortar stores," Best said.

In 2006, Mercent crossed the 50 customer threshold for its service. It generates revenue from subscriptions on its software, which range from $1,500 to $3,000 a month, and from revenue-sharing of between 1% and 3% on completed transaction tracked and processed by Mercent.

Founded in 2005, Seattle-based Mercent currently has approximately 30 employees. Mercent previously raised under $10 million in Series A financing.

http://www.mercent.com