Digabit, http://digabit.com, announced today that it has completed a $9 million Series B preferred equity financing. The round was led by Baltimore-based QuestMark Partners, http://questm.com. Digabit’s existing institutional investors, Flywheel Ventures and High Country Ventures, also participated.
Digabit™ intends to use the additional capital to accelerate product development, and to enhance revenue growth via investments in sales and marketing. Part of the proceeds from the round will be used to further augment Digabit’s cloud platform.
In conjunction with the financing, QuestMark Partners’ Brian Matthews has joined the Board of Directors of Digabit. Brian has been a venture capitalist for nearly a decade. He seeks out growth investments in areas including enterprise SaaS, financial services, and healthcare IT. Brian’s work as an investor is aided by his experience in sales, operations, and business development, in the two successful technology startups with which he was involved prior to becoming a venture investor.
Alan Sage, Digabit’s CEO, stated that, “We consider Questmark to be an ideal capital partner for the next phase of Digabit’s growth. We were impressed at how quickly they apprehended the huge opportunity facing our company, and we were gratified by the collaborative approach they took with respect to the financing process itself. Raising money can be arduous and time-consuming for a startup, but Questmark made it easy.”
Regarding QuestMarks’s investment, Brian Matthews said, “Digabit is just the kind of opportunity we like. It is led by an outstanding executive team, which has built a mature product that addresses a large market, and has gained significant penetration—all on relatively little capital. Perhaps most important in our view is what we heard from Digabit’s customers. They simply love the product.”
Describing the opportunity facing Digabit, Alan Sage noted, “Most large equipment manufacturers still sell parts via phone, fax, or (at best) email. And, the information that they provide to their customers and dealers is created by cutting and pasting documents together, using legacy tools. Amazon-like e-commerce solutions have not gained traction in the manufacturing world because they are designed for selling widgets, not equipment parts and assemblies.”
Sage continued, “Digabit is committed to providing state-of-the-art SaaS offerings to help our customers sell more highly profitable aftermarket parts, while reducing costs across the board. The Series B capital will allow us to extend our technical lead, while expanding our sales and marketing capabilities to allow us to reach the thousands of equipment manufacturers, world wide, that need our solution.”
ABOUT DIGABIT, INC.
Digabit, Inc. provides innovative, cloud-based solutions to increase equipment manufacturers’ aftermarket parts revenues, and reduce their costs for creating, maintaining, distributing, and using technical information. Digabit provides solutions for manufacturing companies and asset intensive industries. More information, including product demonstrations, are provided at http://.digabit.com.
ABOUT QUESTMARK PARTNERS
QuestMark, http://questm.com is an expansion-stage venture capital firm, providing growth capital to exceptional management teams across the U.S. With over $900 million under management, QuestMark targets highly-differentiated, often category-creating companies with the commercial traction and strategic position to support long-term standalone success. Since its founding in 1998, QuestMark’s collaborative, insightful, and patient approach to company building has helped many entrepreneurial firms become market leaders, across a range of industries.
Alan Sage, CEO