Carmel-based DriverReach LLC, a tech firm focused on the trucking industry, has landed $7.5 million in private equity funding that it plans to use to hire more employees and expand its product offerings.
The Series A funding round was led by Atlanta-based Fulcrum Equity Partners, with participation from Charlotte, North Carolina-based CreativeCo Capital.
Founded in 2016 by Jeremy Reymer, DriverReach has 40 employees, half of whom are locally based. The company offers a software platform that makes it easier for customers to recruit and retain commercial truck drivers. It has more than 350 customers around the United States. Reymer is the company’s CEO.
DriverReach says the investment will help fund its plans to boost its remote workforce by about 60 people over the next three years, with an emphasis on sales and marketing, product development and leadership positions. The company also plans to invest in research and development so that it can add more features and capabilities to its software platform.
DriverReach represents Fulcrum’s first Indiana investment, although it likely won’t be the last.
The firm had been wanting to invest in Indiana for some time and learned of DriverReach through TechPoint, the Indianapolis-based organization that supports the state’s tech industry.
This market was attractive because it has a thriving tech ecosystem, which can serve as a source of support to help individual tech companies succeed, Fulcrum partner Jim Douglass said.
“You want to be in an area that has an ecosystem that can foster the growth of the company, and Indiana is one of those areas,” he said.
As part of its investment, Douglass and another Fulcrum partner, Scott Dorfman, now have seats on DriverReach’s board of directors. Douglass said he and Dorfman plan to be in the Indianapolis area on a regular basis to work with DriverReach and help the company grow.
Being here should help Fulcrum find additional local companies it might want to invest in, Douglass said.
“We really like to participate in the markets and become active in the markets, and that’s how you find the next opportunity,” he said.
Douglass said Fulcrum’s investment targets are high-growth software-as-a-service companies based in markets with a healthy tech ecosystem but not a lot of investment capital. The company has also invested in companies in Georgia, Florida, North Carolina, South Carolina, Tennessee, Texas, Colorado, Arizona and Washington, D.C., among other locations. Most of its portfolio companies are east of the Rocky Mountains.
Before founding DriverReach, Reymer was the owner, president and CEO at Driving Ambition Inc., an Indianapolis-based staffing company focused on commercial truck drivers. Reymer sold Driving Ambition to Virginia-based TransForce in 2017.