After quadrupling revenue growth year over year since launching relationship intelligence platform Stimulus Inc., Founder and CEO Tiffanie Stanard has plans to take her Philadelphia-based startup to the next level.
A $2.5 million oversubscribed seed round that closed last week is expected to help her do just that, as she hopes to hire more staff to manage increasing demand. Established in 2017, the supply chain software-as-a-service company helps clients make efficient sourcing and purchasing choices.
“I’m just excited. I’m looking forward to scaling. I look forward to moving quickly,” Stanard told the Business Journal, adding that her "goal over the next few months especially is to have more visibility into the company.”
Stanard is already eyeing a Series A funding round, which she said could launch as early as next year, though she hasn't yet determined her goal for that raise. In addition to VC firms, Stanard said she'd like to attract larger backers such as the venture capital arms of corporations.
The multimillion-dollar seed round for Stimulus was led by Black Ops VC, an Oakland, California-based venture capital firm that invests in Black-led tech companies.
Stimulus has attracted more than 1 million companies in the education, health care and professional services spaces, according to Stanard. She declined to identify specific clients, but said that Stimulus users include universities, dental offices, hospitals, and construction companies.
While Stanard started Stimulus prior to the Covid-19 pandemic, she said her business has gained traction over the past few years, as the global public health crisis spotlighted the growing problems throughout the supply chain industry.
"Even more so my decision was really validated when Covid-19 really brought issues to the limelight that I’ve been speaking about for years ... we’re not using enough data to make these decisions, and there’s a better way to help you diversify your supply chain,” she said.
Stanard began raising the seed round last September while participating in Morgan Stanley’s Multicultural Innovation Lab, where she was able to network and make connections with potential investors. While she set an initial $1.5 million to $2 million fundraising goal, the fund exceeded her top-end target by $500,000.
“Any founder wants to say that they’re oversubscribed,” she said. “That shows the need. That shows the want for your product.”
In addition to Black Ops VC and various angel investors, Genius Guild, Morgan Stanley, Northwestern Mutual Future Ventures, Refashiond Ventures, Bronze Valley, The BFM Fund, and Plain Sight Capital also participated in the round. Locally, the Penn Medicine - Wharton Fund for Health invested an undisclosed amount.
Praising the backers interested in Stimulus, Stanard stressed the importance of having “investors and partners in the round that actually care about who they’re purchasing from, and diversifying supply chain as well.”
Stimulus previously raised a $1 million pre-seed round that closed in early 2021.
Stanard said the latest funds will focus on hiring in the engineering, data and sales sectors. She is looking to initially bring on an additional two to four employees for positions like an enterprise account executive, as well as lead and data engineers.
At present, Stimulus' team of eight employees work in a hybrid model, with an office located inside the Cambridge Innovation Center at 3675 Market St. Stanard expects to maintain offices at the University City location for the next few years as the company continues to grow.
“[We’re] definitely looking to stay here in Philly. We’re really trying to grow and keep the tech scene going here,” she said.
