A Tampa startup that uses artificial intelligence to predict oil pipeline leaks has raised more than $10 million in its Series A funding round.
The round for mIQrotech was jointly led by Page Angel Investor Fund, which is an offshoot of the Harvard Business School Alumni Angels, and an undisclosed investor that had previously participated in a SpaceX funding.
The company originally aimed for a $6 million Series A, after raising $250,000 in pre-seed funding when the company launched in 2017 and closed a $1.2 million seed round in 2018.
"We realized that if we raise more now, we could do more now," Meade Lewis, founder of mIQrotech, said in an interview with Tampa Bay Inno. "So, if you're a high-growth company, that's very advantageous. It means faster revenue growth, faster production with research. So rather than put your foot on the gas, you're able to launch into the stratosphere."
The company uses both hardware and software to predict oil and gas pipeline leaks before they occur. It was most recently accepted into the Chevron Technology Ventures Catalyst Program, which Lewis said helped give the company a bit more credibility among investors to further its oversubscribed round.
"The accelerator helped with the whole product-market-fit thing," he said. "That's the one question founders should have to prove. Most companies don't, but once you can show you have customers and they're sticking around, then you're off to the races. So, it's just about having time and money to execute now."
The company also saw a large jump in interest during the Covid-19 pandemic, which slowed, or in some cases completely stopped, the use of oil. In those cases, the oil goes toward a tank and customers are provided with a sensor that tests corrosion, geo-positioning and more when ensuring the pipeline will not have leaks. The sensor will transmit data to the cloud, using artificial intelligence to predict leaks.
The newest funding will help the company's growth, specifically with new, mostly local hires. The company currently has 27 employees, including contractors, and is shooting for 30 to 40 by the end of the year. It is also in every "oil state" in the U.S., along with Canada and Nigeria, with an eye on the Middle East, Japan and South Korea.
"Really, what we’re doing is going from a startup to an enterprise company to satiate our enterprise customers," Lewis said. "They've been dealing with a startup, and they're used to dealing with much larger firms than us."
He did not comment as to if and when the company will seek more funding.
"We're going from this startup — always hungry and moving on the next deal — to one not starving for capital," he said. "We can be very systematic to how we approach things now. It's exciting all around; it won’t just be pressure, pressure, pressure. We get to sit back and breathe occasionally when we run laps."
