The Y Combinator alum claims more than 47,000 engineers are on the waiting list for its AI-powered collaboration tool.
based in Saint John CoLab Software has raised US$72 million ($101 million CAD) in Series C funding as demand for its artificial intelligence (AI)-powered engineering collaboration tool soars.
The round was led by Intrepid Growth Partners with participation from returning investors Y Combinator, Pelorus VC, Killick Capital, as well as three-time investor Spider Capital and Insight Partners, who increased their positions through super proportionate investments. Intrepid co-founder and partner Mark Shalgan will join CoLab's board of directors as a result of this round.
CoLab plans to make several major product and partnership announcements before the end of the year.
The lion's share came from CoLab's initial investment of about C$77 million, but about a third of that round came from shares acquired from early investors, according to CoLab. Globe and mail. The round reportedly values CoLab at approximately $500 million. When asked to comment, CoLab Chief Marketing Officer M.J. Smith called the round “all equity” and did not disclose its valuation.
Founded in 2017 by CEO Adam Keating and CTO Jeremy Andrews, CoLab enables multi-user cloud uploading and editing of 2D and 3D computer-aided design files. Engineering teams can submit their designs for review, including feedback and comments. This knowledge is collected by CoLab and applied throughout the company.
“Engineers will only share what they know if the process feels natural and valuable—and that’s the breakthrough CoLab has achieved,” Andrews said in a statement. “Without this, design expertise remains locked in people's heads.”
The tool also collects analytics on the average time spent completing reviews, reviewing feedback, and responding to common problems in the review process.
In March KoLab $5.6 million announced. CAD is providing financial support through an industry partnership with ExxonMobil to accelerate the development of new artificial intelligence products. The funding resulted in about 60,000 hours worked and the workforce grew to 131, a figure that has since increased to 165, Smith said.
The company says more than 47,000 engineers have been added to its waitlist for the product since launching its new AI peer reviewer, AutoReview, in June. The tool, trained in internal standards and guidelines, annotates drawings and 3D models to identify errors and inconsistencies.
CoLab said demand is driving its revenue growth. The company says its revenue will nearly triple by 2025. The company's clients include Ford, Lockheed Martin, GE Appliances and Schneider Electric.
“We have had teams of executives—not just engineering leaders, but also CEOs, CFOs, and cross-functional leaders—asking us to develop their AI strategies with them,” Keating said in a statement. “Many people are already making seven-figure bets with CoLab.”
The Globe and Mail reported CoLab's annual revenue to be between $15 million and $30 million, but Smith would not confirm that information. CoLab ranked 19th this year. Deloitte Technology Fast 50 listshowing a three-year revenue growth rate of 1,730 percent.
The Series C funding will be used to develop new AI agents, build integrations with other engineering and AI applications, expand partnerships and scale go-to-market teams, CoLab said in a statement. The company added that it plans to make several major product and partnership announcements before the end of the year.
CoLab was the first company from Atlantic Canada to accepted into the Y Combinator accelerator program. Since the accelerator's demo day in 2019, it has raised C$2.7 million. seed roundfollowed by US$17 million. Serie A round in October 2021 and US$21 million. Serie B round last year.
Image courtesy of CoLab.
