Boulder’s VictorOps raises $12.2 million from investors

VictorOps, a Boulder firm behind technology to help companies better manage IT issues and software development, has raised another $12.2 million from investors, bringing its funding total to about $30 million. The new funds will help get the company to profitability, said CEO and co-founder Todd Vernon.

“Our market is a $10 billion market. It’s super undersold,” Vernon said. “The solution we provide, companies historically built themselves. They didn’t want to build it but there was no (options). We benefited from the people who wanted to buy a solution like this from us and as a result, we’ve been able to grow and we’ve raised more money. It’s the perfect equation for venture capital.”

VictorOps developed a platform to monitor a client’s technology operations and alert IT staff over web or mobile apps instantly to shrink downtime. Teams can then work together virtually to fix issues. The company built a niche for such real-time incident management as companies cut back their own resources or are growing so fast, they can’t hire enough help. VictorOps clients include Snapchat, Cisco and Intuit. New customers have increased 64 percent in the past year.

Vernon said that the funds will be used for customer acquisition, sales and marketing and continued product development. VictorOps, which employs 45 people, expects to hire another 15 to 25 employees next year.

The investment was led by new investor Shea Ventures, the venture arm of the homebuilder Shea Homes. But many of its investments have been in technology companies, including Sphero, SolarCity, Full Contact and Dollar Shave Club. Existing investors Costanoa Venture Capital and The Foundry Group also joined the Series B round.

“We were introduced to VictorOps over a year ago, and we’ve been impressed by both the market dynamics and VictorOps’ execution during that time,” Jason Schoettler, Shea Ventures’ managing director said in an e-mail. “Todd has a terrific team, and we are excited about backing him and the company’s vision. We feel they are at an inflection point, and we’re delighted to help fuel their growth.”