Dorm Room Fund's Firefly sold to Pegasystems

Dorm Room Fund, the "student-run investment fund" started by Philadelphia-based First Round Capital partner Josh Kopelman two years ago, says its first investment, "co-browsing" software maker Firefly, of Philadelphia, has agreed to be purchased later this year by business software maker Pegasystems, of Cambridge, Mass. Statement here.

The seller and buyer won't say what Pegasystems promised to pay, though Pegasystems did report that "acquisition costs" and some other expenses from the deal would shave up to 2 cents a share, or $1.5 million, from its earnings this year. Kopelman told me Dorm Room Fund had invested $20,000, and the sale was profitable.

The fund's investment enabled Firefly founders Dan Shipper and Justin Meltzer to boost sales to small businsses, financial advisors, a state government and a large retailer while staying at Penn, according to Kopelman. Pegasystems says it will keep the brand running and also integrate its targeting and tracking capabilities into its own software.