Portland-based Jama Software has reeled in $13 million in fresh funding, money that the enterprise software company plans to use to help more companies develop products efficiently.
It marks the first outside venture financing for the six-year-old company, which has grown to 80 employees and over 600 customers. Jama also is on the path to hit $18 million in revenue this year — more than double the total of last year.
Backers of Jama include Trinity Venture Partners and Madrona Venture Group.
“The demand we see for faster and cheaper ways to deliver products to market speaks to the growing complexity of today’s software applications, smart products and IT systems,” said Eric Winquist, CEO of Jama Software. “With the requirements, decisions and other details ranging in the thousands to millions within these projects, the business value we’re able to provide our customers is accelerating rapidly.”
Jama’s software-as-a-service tools are designed to make it easier for distributed teams to deliver projects on time, offering a collaborative environment in which employees can easily exchange information and ideas. Customers include Kaplan, Lockheed Martin, SpaceX, Comcast and others. But there are also some big-time players looming in the business collaboration arena, from Microsoft (which acquired Yammer for $1.2 billion last year) to Jive Software (which also has a large presence in Portland). Direct rivals to Jama include IBM and HP, which have competing products.
“We have seen a clear shift in the enterprise to value SaaS-based solutions that many groups can use to collaborate to create greater value for the company – in HR, IT, and Finance,” said Madrona’s Tim Porter. “We see product management and delivery as a key function that many companies and internal groups are struggling to manage with spreadsheets, email and messaging. Jama understands that process and has created a standout solution.”
Winquist tells The Oregonian that the company is looking for a bigger space in Portland to accommodate as many as 100 new hires in the next 24 months.
Meanwhile, Trinity’s Karan Mehandru, who is joining the board, says that they are hoping for Jama to grow to $100 million in revenue, potentially moving toward an initial public offering.
Jama’s VC round follows several large financing rounds in Portland startups this year, including recent cash for Chirpify, Urban Airship, Janrain, Puppet Labs and others.
According to a report by CB Insights, Oregon overtook Washington in terms of venture capital investments in the first quarter. (Oregon companies brought in $146 million, compared to $100 million in Washington state). Washington regained the lead in the second quarter, with $207 million invested, ranking fourth among all states. Oregon finished in 22nd place with $23.8 million invested.