Days after Jurassic Capital announced the closing of its first fund, it’s funneled $2.5 million into Raleigh startup Cycle Labs.
Cycle Labs, a software and services company providing a test automation platform for companies such as General Mills and DHL, self disclosed the Series A fundraise, naming Jurassic Capital as an investor.
Jurassic Capital, in a blogpost, confirmed the investment amount.
In an interview, CEO Josh Owen said that if the firm plays its cards right, the fundraise “will give us a path to profitability.”
The bulk of the funder will go toward beefing up the company’s sales and marketing efforts. The company, at about 30 employees today, is looking to add 20 more team members in 2022.
Financial terms were not released, but Owen confirmed he remains the majority stakeholder in the company.
Cycle Labs was founded in 2020 inside of another of Owen’s companies, supply chain consulting firm Tryon Solutions. Owen said the firm started pitching ideas for its own software a decade ago. From those conversations, in a Memphis, Tennessee, conference room, Cycle Labs was born. Talk of spinning it out started about five years ago, and the company, cofounded by Evan Edwards, officially launched in July.
Jurassic invested after having advised the company for two years, “allowing us to build confidence and trust over a longer period of time,” Jurassic partners Joe Colopy and Kevin Mosley wrote in a joint blog post, adding that “their extensive history in the space gives them an advantage of having been in the shoes of their customers.”
News of the investment comes days after Colopy, whose last startup, Bronto, sold to Netsuite for $200 million in 2015, confirmed the closing of Jurassic’s inaugural fund, Jurassic Capital Growth Fund I, at more than $20 million in investor commitments.
Jurassic Capital aims its dollars at bootstrapped business-to-business software startups seeking capital. It targets startups with between $1 million and $5 million in annual recurring revenue.