Colab Raises $17M Series A Funding - Collaboration Platform

CoLab Software Secures $17 Million in Series A Funding

Newfoundland-based CoLab Software, a provider of a web-based collaboration solution and issue-tracking system tailored for engineering teams, has announced the successful completion of a $17 million Series A funding round. The investment was spearheaded by New York-based firm Insight Partners, with contributions from both new and existing venture capital firms and angel investors associated with companies like Xometry, Onshape, GrabCAD, Bosch, Tesla, and Atlassian.

Platform Capabilities and Customer Base

Established in 2017, CoLab empowers manufacturing teams to seamlessly share and assess design files, facilitating real-time feedback. Currently, the platform serves a number of Fortune 500 clients, including prominent organizations such as Hyundai Mobis, Schneider Electric, and Johnson Controls.

Origins and Founding Principles

The concept for CoLab emerged from the experiences of founders Adam Keating and Jeremy Andrews. While constructing a hyperloop pod for SpaceX and contributing to the Model 3 program at Tesla, they observed a significant disparity in tooling between physical product development and software engineering.

“We encountered considerable inefficiencies and outdated processes,” explained CoLab co-founder and CEO Adam Keating in a recent interview with TechCrunch. “Our engineering aspirations were often overshadowed by the need to manage extensive administrative tasks.”

Addressing Communication Challenges

Keating detailed that processes were largely manual, with email serving as the primary means of team communication. This realization prompted the creation of CoLab, with the objective of enhancing collaboration within innovative engineering companies. Despite the conventional inclination to launch a technology venture in Silicon Valley, Keating and Andrews chose Newfoundland and Labrador, Canada’s easternmost province, as the company’s base.

Future Development and Automation

CoLab’s immediate focus is to enable engineers to concentrate on innovation and creation by maximizing automation in their workflows. This is being achieved through investments in real-time functionalities that promote efficient collaboration between design and manufacturing teams.

Core Features of the Platform

The platform is built around three key features: Drive, Track, and Reviews. The Drive feature allows users to organize their work independently of existing file systems and share files securely. CoLab’s Track feature provides a comprehensive overview of team activities. Finally, the Reviews feature facilitates collaborative design assessments, ranging from formal reviews to informal peer evaluations.

Team Growth and Diversity

Currently, CoLab employs a team of 54 individuals, primarily located in Newfoundland and throughout Canada. The company demonstrated its commitment to diversity by signing a gender diversity pledge in 2019, when female representation was at 10%. Today, women comprise 33% of the CoLab team. The recent funding will support a planned doubling of the workforce.

“We will be initiating the hiring process for 25 positions immediately, followed by another 25 roles shortly after the new year,” Keating stated. “The primary goal is to expand the reach of CoLab to a greater number of engineering teams.”

Allocation of Funds

In addition to personnel expansion, a portion of the funding will be allocated to marketing initiatives, an area where the company has historically invested minimally. The remaining funds will be directed towards the development of new products and features slated for release later this year and in early 2024.

Board Appointment

Concurrently with the funding announcement, CoLab revealed that Josh Fredberg, Managing Director at Insight Partners, will be joining the company’s board of directors.

“CoLab’s CoDesign tool represents a significant advancement for engineers globally,” Fredberg commented. “It is uncommon to encounter a product that so effectively addresses a widespread and technically complex challenge, a result of combining frustration with an entrepreneurial spirit. Adam, Jeremy, and their team are uniquely positioned to resolve a profession-wide issue with their leading-edge platform.”

Future Vision and Integration

Looking ahead, Keating highlighted the potential for a more robust data model within CoLab, which the company intends to explore. The long-term objective is to provide engineering teams with a comprehensive suite of tools that streamline and automate their daily tasks.

“Ultimately, we aim to integrate with the tools engineers already use,” Keating concluded. “We envision CoLab as a central hub, seamlessly connected to platforms like Slack, Microsoft Teams, and Jira.”