Colab secures $28.6 million CAD in Series B funding to expand its team and integrate AI

CoLab Software, based in Newfoundland, has raised $28.6 million CAD ($21 million USD) in Series B funding to grow its team and integrate artificial intelligence (AI) into its engineering design collaboration and communications platform.

The recent all-equity funding round, finalized at the end of April, was spearheaded by Insight Partners, a prominent investment firm. Noteworthy participation in this round also came from familiar backers such as Y Combinator, Killick Capital, and Pelorus VC, alongside new investors Spider Capital and Panache Ventures.

As a result of this successful funding round, Michael Shephard from Insight Partners and CoLab's chief strategy officer, Taylor Young, have assumed positions on the company's board, bringing valuable expertise and strategic insights to further propel CoLab's growth and development.Before the Series B funding round, CoLab was considered "default alive," indicating that it was on track to achieve profitability without depleting its financial resources, as mentioned by co-founder and CEO Adam Keating in a LinkedIn post.

Keating also highlighted that the company had experienced significant growth, with its annual recurring revenue increasing tenfold since the previous Series A round in 2021. Despite not being in immediate need of additional funding, Keating explained that CoLab chose to capitalize on the strong market demand over the past year by expanding its engineering teams to keep pace with the rapidly evolving industry landscape.

CoLab has announced plans to increase its workforce at its headquarters in St. John's, Newfoundland and Labrador by adding between 30 to 40 new positions. These roles will include three executive hires for the positions of vice-president of people, vice-president of customer success, and vice-president of sales, with the latter already being filled. CoLab's co-founder and CEO, Adam Keating, stated that this hiring initiative will boost the company's total headcount from 86 to 125 by the end of the year, reflecting its commitment to growth and expansion.

Established in 2017 by co-founders Adam Keating and CTO Jeremy Andrews, CoLab offers a unique tool that facilitates the transformation of 2D and 3D computer-aided design files into cloud-compatible formats that can be collaboratively edited by multiple users. This innovative platform enables engineering teams to submit their designs for review, allowing team members to provide feedback and comments for further discussion.

Additionally, the tool captures valuable analytics on various aspects of the review process, including the average time taken to complete reviews, address feedback, and identify common issues encountered during the review phase. This comprehensive approach enhances collaboration, streamlines communication, and ultimately improves the efficiency and effectiveness of the design review process for engineering teams utilizing CoLab's software solution.

CoLab Software, based in Newfoundland, has successfully secured $28.6 million CAD ($21 million USD) in Series B funding to support its growth initiatives, including expanding its team and integrating artificial intelligence (AI) into its engineering design collaboration and communication platform. CEO Adam Keating has expressed his intention to increase the company's workforce from 86 to 125 employees by the end of the year. This significant funding round underscores CoLab's commitment to innovation and further enhancing its software solutions to meet the evolving needs of engineering teams.

CoLab Software's successful $28.6 million CAD Series B funding round, led by CEO Adam Keating. The company's strategic focus on expanding its team from 86 to 125 employees by the end of the year aligns with its goal of incorporating artificial intelligence (AI) into its engineering design collaboration and communication platform. This investment not only supports CoLab's growth trajectory but also underscores its commitment to leveraging cutting-edge technologies to enhance its software solutions and provide value to its users in the engineering industry.