Software maker closes $8.6M in funding
A local maker of IT software has closed an $8.6-million Series B round of venture capital funding.
Grand Rapids-based Blue Medora said today it will use the funds for international expansion, product development and hiring "40 or so" people over the next 18-24 months.
The company develops plugins for virtualization and cloud monitoring and management.
Despite its international expansion, Blue Medora CEO and co-founder Nathan Owen said its local presence will remain strong.
“We’re still located on the Beltline. We’re not going anywhere,” he said. “Seventy-five percent of hiring will go toward the West Michigan area.”
Some of Blue Medora’s major customers include Honeywell, Lufthansa, Starbucks and Virgin Media.
This latest round of funding was led by St. Louis-based Lewis & Clark Ventures.
Investors in the company’s $4.6-million Series A round of funding in 2015 included VMware and Michigan eLab. A $1.25-million seed round of funding in 2013 was led by Grand Angels, contributing $750,000, and Start Garden, contributing $500,000.
Blue Medora has raised $14.6 million in capital since its inception in 2007.
Owen said some of the funding will be allocated to sales and marketing hiring, because the company needs to position itself as a global player as it grows.
He also said the success of Blue Medora products has highlighted the need for even more development.
“Increasingly, companies are shifting to the cloud for IT solutions, and since they have, there’s been a greater appetite for our products,” Owen said.
Dale Foster, president of Promark Technology — a reseller of Blue Medora software in Annapolis Junction, Maryland — said Blue Medora’s growth has helped Promark increase productivity.
“Our customers’ journey to the cloud starts with choosing the right applications and the right environment around them,” he said. “We’re excited about this next phase in its growth.”
During the past year, the company has doubled its office size, hired Chris Noordyke as VP of global sales and more than doubled its workforce, adding 40 employees.
Owen said Blue Medora’s growth has been fueled primarily by access to capital.
“Our growth kicked off in earnest in 2012, when we started taking in external capital to fuel our growth…starting with places like Start Garden and eLab,” he said.
He underscored more expansion is coming.
“We’re going to continue leveraging the incredible talent pool here," he said. "We’re leveraging people from GVSU, Western Michigan University — technologically talented people who otherwise would have gone to the West Coast.”