Editor’s Note: This story first appeared in the Austin Business Journal. It appears here in an abbreviated format. See the original post here.
Many businesses are finding venture capital funding harder to come by these days. But those that can demonstrate a clear need for their product during the COVID-19 pandemic are receiving extra interest from investors.
Consider SourceDay, which today announced $12.5 million in series B funding to develop its software that automates purchasing for manufacturers and distributors, helping them better manage their supply chain and expenses.
New investor Baird Capital, based in Chicago, led the round. All existing investors also participated, including Silverton Partners, ATX Ventures and Draper Associates.
"As businesses face unprecedented times, they are seeking faster answers to bigger challenges,” Joanna Arras, principal at Baird Capital, said in a statement; she has joined SourceDay’s board as part of the investment. “More than ever, companies need resilient and agile supply chains. Poor supply chain visibility and inefficient collaboration will be crippling during this time of rapidly shifting demand. Baird Capital is proud to invest in SourceDay to help companies face these challenges head-on.”
SourceDay counts more than 6,000 global manufacturers, distributors and suppliers as customers. The company said in announcement its software is useful for those who want a software-as-a-service solution "to manage chaotic supply chains that are affected by COVID-19."
Founded in 2013, SourceDay has now raised about $23.3 million. The company employs 56 with plans to reach 60 by the end of April. Earlier this year SourceDay moved into a larger headquarters in Northwest Austin, and last fall it overhauled its C-suite with multiple hires.
Other companies that have announced funding during the coronavirus pandemic include Austin-based AlertMedia, which snagged $15 million for its software that helps companies communicate with employees during emergencies. On the high end this week, Utah-based Podium announced a $125 million series C round as it develops software for businesses to message customers and San Francisco-based CircleCI nabbed $100 million in series E funding for tools that help with software development.
SourceDay said in the announcement it will use the new funding for product development and to invest in its go-to-market strategy.
“The COVID-19 pandemic is exposing the ways that outdated supply chain practices make manufacturers vulnerable,” SourceDay CEO Tom Kieley said in a statement. “I’m excited to add Baird Capital to our team of investors. Baird’s experience with leading SaaS companies and its relationships across the manufacturing sector will help SourceDay achieve our mission to make companies less vulnerable to current supply chain disruptions and to all kinds of shifts in demand.”
