Beehive Industries has filled a $2.5 million Series A investment from St. Louis-based Advantage Capital.
The Lincoln-based startup provides infrastructure management and mapping software to utilities, city government and construction companies.
The company began in 2011 and has incubated in Nebraska Global, an investment fund that also provides space, resources and talent.
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Bill Sheldon, founder of Beehive, says the $2.5 million will accelerate the company’s growth, help it break into new verticals, get more office space and hire an additional 20-30 employees in the next year in marketing, sales and customer service. Currently Beehive has a team of 19.
Sheldon said Advantage Capital had been aware of what was going on and was interested in investing in Beehive a year ago, but the timing wasn’t right. When the timing did come together, the investment from a regional VC is validation for his idea, Sheldon said.
“Financing alone isn’t enough. It’s the perfect time to add a great partner like Advantage. They understand the problem, our solution and provide great input and a broader view,” Sheldon said. “We’re starting to see growth on a national scale and that kind of insight is very helpful.”
Sheldon said their network also would prove valuable—Advantage has invested in other GIS companies. Advantage also looks to invest in companies that can get new market tax credits, an economic development tool for getting money out to certain rural areas.
Sheldon also praised Nebraska Global for their investment in Beehive, but was proud to bring outside investment in to Nebraska. He said that will free up money for Nebraska Global to invest in other young startups.
“Bringing it from outside is an economic benefit,” he said.
Beehive had been solely funded by Nebraska Global until this point.
Patrick Smith, principal and co-founder of Nebraska Global, said Beehive embodies the Nebraska Global model.
“We assembled a team around a passionate founder with an idea and domain expertise, provided the initial funding, product development and support, and grew revenue into the seven figures to get it positioned for scaled expansion and a Series A round,” Smith said. “We now welcome Advantage Capital to the team.”
Sheldon said he welcomes any input or ideas on how to use the software. So far they’ve focused on utilities and small governments but said he sees many verticals including facilities management, campus infrastructure, medical, schools, managing fleets and more.
“If it has an infrastructure component and a spatial component, I’d love to hear about it.”
