Boulder-based TeamSnap has raised $25 million from existing investor Foundry Group, and brought on a new funder from Canada, to fuel its continued growth and, potentially, buy up competing companies.
TeamSnap, founded in 2009, has experienced substantial growth among users of its digital platforms for organizing athletic teams.
This summer, the company reached 10 million active users and 1 million teams. This week, CEO Dave DuPont said it is approaching 15 million users.
“We’ve got a great product, a great team and customers love what we’re doing,” he said. “That’s been a formula that has been gaining momentum over the years.”
TeamSnap also seems to have hit on a successful formula for fundraising, bringing in $47.3 million to date, including multiple multi-million dollar investments from Foundry.
The majority of the recent cash came from the $500 million Foundry Group Next fund, established in 2016 to make growth investments in “successful companies.”
“It takes money to scale and that’s what they are doing here,” said Jason Mendelson, a managing director at Foundry. “We think Dave and team are building a world-class platform in a huge market that has lacked innovation.
“TeamSnap is leading this evolution and we are excited to be part of it.”
The recent financing also brought to the table Canadian fund Fairfax Holdings. About 20 percent of TeamSnap’s users are in Canada, where the platforms are particularly popular with hockey teams.
DuPont said the money will be used primarily to drive more growth through sales and marketing and — potentially — acquisitions.
“We’re not going on a spree, but we believe there are a couple of companies that could help us grow faster,” he said. “We’re not in a hurry and we can be selective.”
TeamSnap is also looking to grow its workforce through hiring. Though he declined to specify how many people his company employs, DuPont said “we’re in the triple digits and expect to expand by 50 percent this year.”
Many of those workers are throughout the U.S. As of September 2015, TeamSnap employed 15 people in Boulder.
As to whether more financing is in the company’s future, DuPont wasn’t sure. He didn’t even solicit this money, he said, but rather was approached by the investors.
“People don’t give you $25 million because they think you’re cool,” he said. “They do it because they think you have a tremendous opportunity to exploit.
“We’re doubling down and our investors are doubling down with us.”
Shay Castle: 303-473-1626, castles@dailycamera.com or twitter.com/shayshinecastle
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