Software maker closes $4.6M in funding
A maker of IT management software has closed a $4.6-million Series A round to fund product development, growing demand and international operations.
Blue Medora in Grand Rapids announced today the close of its Series A round of venture capital funding, bringing its total funding to nearly $6 million to support its continued growth.
The roughly $4.6-million Series A round was led by Ann Arbor-based Michigan eLab.
The company previously raised a $1.25-million seed round in 2013, which was led by early stage investors Start Garden, with roughly $500,000 in funding, and Grand Angels, with a $750,000 contribution.
Doug Neal, managing director of Michigan eLab, said Blue Medora offers a great value proposition for IT administrators who are tasked with managing and monitoring complex hybrid cloud and virtualization-based application environments.
“Blue Medora has emerged as one of the market leaders in cloud systems and application performance management, and we are excited to be working with them to establish long-term success,” said Neal, who will join Blue Medora’s Board of Directors.
Nathan Owen, co-founder and CEO at Blue Medora, said the company began raising funds late last year for the Series A and overall has three lead investors: Michigan eLab, Start Garden and Grand Angels.
“Beyond that, there are a couple smaller investors not named, who represent a small fraction of the Series A,” Owen said.
Owen said the Series A round is a recognition by the investment community that Blue Medora has reached a point in its lifecycle that it has potential and of the technology it’s bringing to market.
“The funding itself will allow us to take the technology we have been developing and bring it to market by adding more sales, more marketing, as well as continuing to double down on our investment in research and development,” Owen said. “We are having a lot of success with our technology around a platform, VMware, and funding will partially be used to expand beyond that platform.”
Owen added that the round will help the company “grow our international presence . . . to basically help build the infrastructure to expand internationally.”
During the past year, Blue Medora has experienced a significant increase in growth and demand for its cloud system management products, and the investment will allow the company to continue to help organizations re-shape how they aggregate, analyze and visualize data, according to Owen.
“We have been growing rapidly,” Owen said. “We just moved into a new office that is roughly twice the size of the previous office and doubled our staff. We are starting to hire our first employees outside of the state of Michigan.”
The company has expanded its employment base from fewer than 20 employees to 50 software developers, quality assurance engineers and sales and marketing professionals.
Blue Medora also recently hired Chris Noordyke as the VP of global sales to build on the company’s worldwide sales and expand its presence.
Betsy Grant, marketing associate at Blue Medora, said the company is beginning to draw in talent from outside the area.
“We are expanding our talent from other areas as well, bringing them into Grand Rapids to put Grand Rapids on the map for technology,” Grant said.
Blue Medora focuses on developing and distributing software extensions for IBM Tivoli Monitoring, Oracle Enterprise Manager and VMware vRealize Operations.
The company’s software integrates virtualized and cloud-based databases, applications and services with underlying infrastructure.