G2 SwitchWorks has apparently obtained $10 million in Series A financing from Norwest Venture Partners and the Texas Pacific Group (TPG), both of which have become minority investors in the start-up.

Published: 01 Mar 2005

G2 SwitchWorks has apparently obtained $10 million in Series A financing from Norwest Venture Partners and the Texas Pacific Group (TPG), both of which have become minority investors in the start-up.

Travel Weekly reports that with the funding, G2 expects to be able to ramp up installations at travel agencies. G2 claims too that two of the top five US travel agencies are customers, but has declined to identify them.

“The financing round closed in January, but was announced today,” states Dennis Schaal, Travel Weekly Reporter. “The timing seems geared to show that two major players, Norwest, an information technology venture investor, and TPG, which has invested in Continental, America West and Hotwire, expressed confidence about G2 despite the prospect of a lawsuit against the start-up.”

Orbitz is seeking an injunction to bar G2 and the employees from competing against Orbitz, and from using or disclosing confidential information and trade secrets, which Orbitz has accused G2 SwitchWorks of stealing from it to develop the G2 reservations system.

Several members of G2’s current management formerly worked at Orbitz, which Cendant acquired in November.

Travel Weekly continues that G2 has however denied most of the allegations, saying it did not steal trade secrets and that its technology is dissimilar from that used by Orbitz in direct-connecting to airlines.

G2 says that its investors knew that the start-up’s dispute with Orbitz may lead to litigation, but where nevertheless not deterred from making the investment.