Cerulean Labs, an architecture design-focused startup, is relocating its global headquarters from New Zealand to Atlanta after getting an early investment from a local firm.
The round was led by Atlanta-based Shadow Ventures. Financial terms weren’t disclosed, but the firm typically invests approximately $2 million into portfolio businesses. The funds will be used to develop and commercialize Cerulean Labs' conceptual design product for architects.
Shadow Ventures played a large role in convincing Cerulean Labs to settle in Atlanta. It's an example of how increasing local capital sources, like venture capital and private equity firms, can help Atlanta's innovation ecosystem grow. Similarly last year, local firm Circadian Ventures lured Silicon Valley startup Coginiti Corp. to Atlanta after leading its $4 million investment.
“Venture firms are really the glue that holds companies here, but they're also the honey that attracts these businesses," John Yates, technology attorney at Morris, Manning & Martin LLP, told Atlanta Inno at that time. "Many of them are fearful that if they move out of Silicon Valley, they'll move away from the money."
Cerulean Labs is a software development company focused on the architecture industry. Its signature product, Spaces, allows architects to design constructions on an iPad. The app lets them sketch as they would in a notebook using an Apple pencil, while the designs match its dimensions in 3D.
“Most people don't pay attention to this market… what Cerulean does is as transformative as the internet to impact this industry,” said K.P. Reddy, founder and managing partner of Shadow Ventures.
The top markets for architecture-focused companies included San Francisco, Chicago and New York. Reddy pointed out the affordability and preferable weather in Atlanta compared with those cities to Cerulean. The Hartsfield-Jackson Atlanta International Airport also makes access to the company’s locations in New Zealand and Budapest more accessible.
The company is currently seeking an office space in Atlanta, which may be near Georgia Tech's Midtown campus, said Reddy. It won’t bring people to the city, but will hire locally in roles for marketing, customer support and sales. The number of hires hasn’t been determined. It currently has 20 total employees.
A civil engineer by background, Reddy founded Shadow Ventures in 2017 after serving several leadership roles in companies including California-based American Reprographics Company and Atlanta-based SoftWear Automation Inc.
The firm primarily focuses on real estate, and construction and design technologies. The highest concentration of investors in the firm are in New York, San Francisco and Asia, Reddy said. Other portfolio investment companies include California-based Kadence and North Carolina-based BotBuilt. Shadow Ventures also has investments in Georgia startups Kairos Water Inc. and Green Badger.
