How can tech startups succeed in Michigan? Look to Blue Medora

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.

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