Monument-based Quantum Metric, a startup software provider that helps companies find their best online revenue opportunities, has landed $25 million from a New York venture capital fund.
Quantum plans to use the money from Insight Venture Partners to hire 60 people over the next six months to expand its sales, marketing, product development, engineering and executive teams, said Mario Ciabarra, the company’s founder and CEO and a veteran of three previous local software startups. The company has added 25 employees since January.
“We want to be Colorado Springs’ technology unicorn,” a startup that has grown to be worth $1 billion, Ciabarra said. “We are off to a good start, doubling sales in this quarter from the previous quarter. And we expect our revenue to increase 400 percent this year from last year,” though he declined to disclose the company’s revenue or value.
The deal comes after Insight sold most of its stake in Colorado Springs-based Cherwell Software to private equity giant KKR in a $172 million deal completed in April. Insight, a $20 billion venture fund, has invested in more than 300 software companies, such as Twitter and Tumblr, and has completed more than 200 mergers or acquisitions for companies in which it had a stake.
“We are looking to invest in entrepreneurs like Mario who have built best-in-class teams, and to support rapidly growing businesses like Quantum Metric that have created products that customers love,” said Lonne Jaffe, Insight’s managing director, in a news release. “Quantum Metric’s business is particularly exciting to us because its product line will continue to improve as it’s exposed to more” customers.
Insight will get an undisclosed minority stake in Quantum and one of five seats on its board of directors. Quantum previously raised $1 million each from Ciabarra and from Bain Capital Ventures, a unit of Boston-based private equity firm Bain Capital cofounded by 2012 Republican presidential nominee Mitt Romney.
Quantum has outgrown its 1,700-square-foot Monument office, where 12 of its 40 employees work. It’s looking for up to 5,000 square feet in northern Colorado Springs, Ciabarra said. The company also has offices in Los Angeles, San Francisco and Maryland and plans to open an office soon in the Denver Technology Center area.
“We have found incredible talent in Colorado Springs, and we are confident that an investment from a top venture capital firm will allow us to continue to attract top talent,” Ciabarra said.
“I have found passion, persistence and integrity make a great team, and when you find people with all three of those traits, you have found incredible talent.”
Ciabarra got his start as a technology consultant with Accenture and PricewaterhouseCoopers before joining Virgin Mobile USA to lead its web technology team. He later worked for Hewlett-Packard in Colorado Springs on a contract with satellite television giant DirecTV before starting his first of three startups, DevStream.
Springs-based DevStream made software to monitor and analyze server performance. It was sold to software giant CompuWare, making him wealthy enough to finance his next three startups.
He later started Rock Your Phone, an independent iPhone app store that generated $3.3 million in revenue from about 280,000 apps before he sold it to a major competitor, Cydia. He also created a second independent iPhone app market, called Intelliborn, that he operated until 2014.
Ciabarra started Quantum Metric in 2011, but he spent the next several years building a home in the Black Forest area, and the company didn’t really start developing its product until 2015. Quantum began selling its software in 2016 and was breaking even and then generating profits within a few months, he said.
“We find where people are having issues with websites, quantify it and help our customer fully understand the problem by showing them the issue as their customer sees it,” Ciabarra said.
“We have built a petabyte (1,000 terabytes) analytics platform that can answer questions no one even thought of asking because they didn’t have the power to process the query. You can ask a question (using Quantum’s software) and get an answer in 5 seconds that used to take hours or days.”
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