Internet of things startup Cognosos Inc. has raised its largest funding round to date as it looks to double its staff, expand in target industries and enhance its product.
The company raised $25 million from California-based Riverwood Capital, according to a March 8 news release. As part of the raise, Joe De Pinho and Eric Ma from the West Coast investment firm will join the company’s board of directors.
“With funds from this raise we will continue to bring greater insights to our customers,” said a spokesperson in an email. “That will come in the form of expanded use cases as well as the addition of complementary hardware components that can gather additional data to drive evidence-based business decisions.”
Cognosos plans to grow its staff from 50 to 100 employees with hires in all departments by the end of the year. The company has an office in Midtown and will soon expand its real estate, said the spokesperson, who didn’t provide further details. Its office is located at 1100 Spring Street NW, according to its website.
Founded in 2014 with software developed at Georgia Tech's Smart Antenna Lab, the Atlanta company provides wireless technology and hardware that allows sensors in cars, parking meters and other devices to transmit data. It is led by CEO Braxton Jarratt.
The company has around 100 customers and approximately 4,000 registered users, said the spokesperson. Following the raise, the company plans to expand its presence in the healthcare, automotive, manufacturing and logistics markets.
In the past year, the company has more than tripled its revenue and expects to at least double that year-over-year, said the spokesperson. The company is still burning cash with margins in the range of 60-70%, but the recent investment gets it to positive cash flow.
In 2021, Cognosos was the 94th fastest-growing private business in Atlanta with 226% revenue growth over two years, according to Atlanta Business Chronicle research. In September, the company was ranked as the city’s 40th Best Small Place to Work.
Riverwood’s investment is the biggest to-date for the company. It raised $1.5 million in 2019 two years after it raised $7.1 million from Cox Enterprises, Covalent Partners and Pete Kight, who sold his company CheckFree to Fiserv for $4.4 billion in 2007.
