Small business holding company Universe Software Inc. has raised an addition $1.3 million in a $7.6 million round, according to a filing with the U.S. Securities and Exchange Commission.
About the raise: The most recent investment brings Universe Software’s total funding to at least $19 million. According to SEC filings, the company raised $925,000 in April 2021; $11 million in November 2021 and $6.3 million before the latest round. There were 13 investors participating in the latest round.
About the company: Universe Software is a holding company of startup businesses. As part of the consolidation market, it makes acquisitions into smaller companies as a way of sharing resources and expenses amongst them in order to grow faster in exchange for equity. The company’s portfolio includes business management startup Appointfix and equestrian tracking company Equilab, according to its website.
Why it matters: In the current economic environment, holding companies such as Universe Software may have become an attractive option for startups to gain resources as investors pull back from tech. Inflation and rising interest rates have led some investors to trade a focus on growth to profits. The pullback has led some fast-growing companies to layoff employees, including restaurant tech startup Sunday and data privacy company OneTrust. Startups and tech firms across the world have laid off more than 78,000 workers this year, according to startup layoff tracker Layoffs.fyi.
“As vertical companies are looking to grow, there's been a contraction of available capital, yet those companies are committed to expand,” said John Yates, technology attorney at Morris, Manning and Martin. “If they can find a player to give resources and reduce costs, that could be helpful to allow smaller vertical companies to grow more rapidly.”
About the founders: Prior to his work at Universe, co-founder and CEO Nick Miller was the co-founder and CEO of event management platform Gather, which was acquired by Vista Equity Endeavor Fund I in 2017, according to his LinkedIn. Universe Software’s other co-founder, Eric Stromberg, is also founder of payroll-as-a-service company Check and technology investment firm Bedrock, according to his LinkedIn.
