A St. Petersburg-based startup that offers communication technology tools has closed a $10.8 million Series A round by a local firm.
Viirtue announced the raise on Tuesday; it was entirely given by Tampa-based Ballast Point Ventures.
The duo had been in talks for the last year, according to Viirtue CEO Daniel Rosenrauch. The Series A was less about funding and more about adding a strategic adviser to help fuel growth for the already cash-flow-positive startup.
"We wanted to keep it clean; we were a very profitable company and we wanted to pour fuel on the fire," Rosenrauch said. "So most of it is looking for the strategy partner versus the actual capital."
The company was originally seeking $10 million, which became oversubscribed at $10.8 million. The company itself is on track to make $10 million in revenue by the end of the year, according to Rosenrauch, hence the high asking amount.
"We're looking to compete with cloud-based marketplaces ... and we really need to get to that elite scale quickly," Rosenrauch said. "We're already very profitable so a $2 million to $3 million raise doesn’t get us anywhere."
Viirtue provides voice and communication services that enable managed service providers to sell communication services under their own brands. It has an office in downtown St. Pete at 401 16th St N.
This is the first funding for Viirtue, which has been bootstrapped since its launch in 2017. The company will use the latest funding to enhance its platform, which helps businesses with procurement to fulfillment. It also expects to add to its 40-plus person team, with roughly 20 new hires that Rosenrauch hopes come directly from the local talent pipeline.
The company's investment was part of Ballast Point’s fourth fund, which closed at more than $190 million. Across the firm’s four funds, it raised more than $550 million. The firm typically invests in three to four companies per year, including Tampa-based Symphonic Distribution and Bradenton-based Pacemate.
“Viirtue is at the forefront of a rapidly evolving market, and we believe the company is well-positioned to continue its growth trajectory,” said Sean Barkman, partner at Ballast Point Ventures, in a statement. “We look forward to partnering with another great local Tampa company.”
Barkman will join the company's board of directors.
The funding adds to larger wins that have been racking up in the Tampa Bay tech scene. Earlier this week, a space technology company announced it closed a $5 million seed round. In 2022, local companies raised roughly $543.7 million across 82 deals or $6.2 million per deal on average.
"We’ve always been very disciplined; we felt it was a good time to raise capital," Rosenrauch said. "While everyone was slowing down, looking around, we can drive right past them."
