Toronto-based government software startup Thentia has closed a $10 million CAD Series B round led by New York growth equity firm Spring Mountain Capital. The round, which consisted entirely of primary equity financing, also saw participation from existing investor BDC Capital.
Thentia intends to use the new funding to accelerate its go-to-market strategy and bring its cloud-based licensing software to more United States (US) government agencies. The startup plans to invest the capital in customer success, product development, marketing, and sales.
Thentia plans to use the funding to bring its cloud licensing software to more US government agencies.
Founded in 2014, Thentia provides its Thentia Cloud licensing software to governments. The startup’s tech aims to help government agencies improve user experiences and increase visibility into their own operations, by speeding up, simplifying, and automating the data and license management process.
A company spokesperson told BetaKit Thentia decided to raise funding now to meet “strong demand” the startup is seeing for its solution and “scale up to capture market share as rapidly as possible.” The new round brings Thentia’s total funding to date to $15 million.
“This investment positions us to focus on expanding in the US and achieving our most important goals, including becoming the state-supported cloud-based agency software provider across all 50 US states,” said Julian Cardarelli, Thentia’s CEO.
Cardarelli added that Spring Mountain’s portfolio and focus on government and enterprise tech will help Thentia bring its solution “to the many government agencies in the US who rely on outmoded systems to manage their data and licensing.”
Jamie Weston, Spring Mountain’s managing director, called Thentia Cloud “much-needed,” adding that his firm believes it will be “a must” for government agencies looking to deliver “the best user experiences while providing deep data visibility to their own organizations.”
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Spring Mountain provides growth equity financing to enterprise tech and healthcare companies. For Spring Mountain, the round represents the firm’s first investment from its third fund, SMC Growth Capital Partners III, and its first Canadian investment.
According to Weston, the American government tech (GovTech) space lags in terms of digital transformation, “with many US agencies relying on manual, paper-based systems and archaic processes to manage data and licenses.
Sean Brownlee, partner at BDC Capital’s Industrial, Clean and Energy Technology (ICE) Venture Fund, said Thentia’s solution “has successfully disrupted the underserved regulatory licensing industry.”
“Thentia has assembled a world-class, top-tier team of professionals and thought leaders in the GovTech space, and their success is evidenced in the impressive growth they’ve already achieved,” Brownlee added.
August was a busy month for Thentia: the startup closed a $3 million Series A round backed by BDC Capital; added Harry Cayton to its board of directors; and hired Steve Genders, formerly of BMO and IBM, as its VP of information systems and security.
Photo of US Capitol by Andy Feliciotti via Unsplash