BOULDER – Local startup VictorOps Inc. has raised a new $2.6 million round of funding to keep building out its sales team as the company works toward raising a larger Series B round in the fall.
The Boulder-based company disclosed the funding in a filing with the Securities and Exchange Commission on Friday.
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VictorOps co-founder and chief executive Todd Vernon said in a phone interview Monday that the funding round is in the form of convertible debt that will convert to equity once the Series B is raised. Vernon said all previous investors, which include Costanoa Venture Capital and Boulder-based Foundry Group, participated in the most recent round along with management.
Founded in 2012, VictorOps makes a software platform that helps development operations teams at software-as-a-service companies manage and remediate software system alerts and outages in real time.
The company launched the platform early last year and until the first quarter of this year had been relying solely on inbound sales leads. The company launched a sales team in the first quarter this year with five new hires. Vernon expects to add five more people to the team in the second quarter.
Vernon declined to disclose specific revenue figures but said the company’s sales have been growing 100 percent quarter over quarter, with a number of Fortune 500 companies coming on as clients in the first three months of this year.
“It was pretty clear to us we had the right product and the right market,” Vernon said. “We could have raised a full round now, but we think it’s going to be a lot more favorable in the fall” in terms of valuation of the company.
VictorOps raised a $6.5 million Series A round of funding in 2013 that was led by Costanoa. Foundry Group, which also participated in the Series A, led VictorOps’ $1.6 million seed round in 2012.
Following the Series A, VictorOps expanded into an 8,000-square-foot space that it now calls home at 1401 Pearl St., above The Cheesecake Factory on the Pearl Street Mall. The company has 35 employees, having added about 15 over the past year. Part of that space, Vernon said, has been subleased out to another company that will be leaving in August just as VictorOps’ growth necessitates the extra room.