11 Jun How can tech startups succeed in Michigan? Look to Blue Medora
How can tech startups grow in Michigan? Look to Grand Rapids-based Blue Medora LLC. Its founders and investors say it is a textbook example of how Michigan’s high-tech startup ecosystem can work.
Blue Medora makes software that monitors the performance of large IT companies’ cloud-based applications. Customers include IBM, Oracle, and VMware. Blue Medora made almost $10 million in revenue last year and is on track to double that this year.
The company was founded with a niche technology that could quickly generate cash flow. Then it got seed funding from two strong supporters of early-stage companies in Grand Rapids — Start Garden, a seed-stage venture capital fund and business incubator founded in 2012 by Rick DeVos, and the Grand Angels, an active angel network.
Its much larger Series B round of funding, of $8.6 million last year, was led by a larger regional VC, St. Louis-based Lewis & Clark Ventures, which further validated the company’s business model. With the $1.25 million the company raised in seed funding, it has now raised almost $14.5 million in equity funding.
“We believe Blue Medora is providing deep, game-changing insights that weren’t being addressed in the rapidly growing IT operational-analytics market,” Brian Hopcraft, managing director of Lewis & Clark Ventures said.