PactSafe Inc., an Indianapolis-based tech firm that offers clients a cloud-based contracting platform, on Wednesday announced it has secured $5.5 million in venture capital.
That’s the fifth biggest venture capital deal announced in Indiana this year.
The round was co-led by Houston-based Mercury Fund and Salt Lake City, Utah-based Signal Peak Ventures, along with repeat investors Elevate Ventures and Vulpes Testudo Fund.
This announcement follows PactSafe’s $2.5 million seed round in November 2015.
“With this investment, we will continue our history of creating solutions that drive efficiencies and save our customers enormous amounts of time,” PactSafe founder and President Brian Powers, a former Taft Stettinius & Hollister attorney, said in a written statement. “Since PactSafe’s inception, we’ve processed millions of legal events, allowing our customer to save 1.8 million work hours by using our platform.”
PactSafe, which was founded in 2012 and has 12 employees, will focus on “continued development of its high-velocity contracting solution,” Powers, 43, said. He added that the firm will use the funds to expand its reach into enterprise software-as-a-service, e-commerce markets and other verticals.
Powers told IBJ that the infusion of cash means the company will be expanding its workforce.
“Growing our team will definitely be a use of funds, although headcount growth will be steady,” Powers said. “Initially, we plan to hire 15 to 20 people for the balance of 2018, and we anticipate most of that hiring to happen locally.”
The new hires will be focused on product development, engineering, and sales and marketing, Powers added.
In 2016, the company had eight employees, but announced it would be moving to a new, bigger office in preparation of adding another 91 employees by 2020.
PactSafe’s platform allows customers to import information from any system directly into a contract and track contracts in real time. PactSafe will continue enhancing its click-through workflow program interface, which is used by businesses like TiVo, Upwork, and Angie’s List to power millions of self-service online contracts every day, Powers said.
“We are very pleased to be joining a strong syndicate with our investment into PactSafe,” Ron Heinz, managing partner at Signal Peak Ventures, said in a written statement. “Upon initial review, we were easily attracted by the company’s technology, management team and the broad problem PactSafe is solving in the marketplace. We look forward to supporting the company’s growth and are very excited for its bright future.”
Adrian Fortino, managing director of the Mercury Fund, said his firm was attracted to PactSafe because it solves a “very difficult” problem.
“PactSafe is providing unparalleled solutions to the complexity of inefficiencies of online contract workflows,” Fortino said. “We are excited to be on board and be a part of PactSafe’s success.”