IGM Technology, a Toronto-based company that sells financial software to local and provincial government agencies, has secured a “strategic growth investment” from Lead Edge Capital.
The amount of investment was not disclosed.
However, the statement said the funding marks IGM's “first institutional capital raise” and that the money will be used to “invest in products and the business.”
IGM provides a technology platform, Gravity, that government agencies and other organizations use to help with regulatory and transparency compliance, as well as related tasks such as budget management, lease accounting and account reconciliation.
IGM said in a statement that it is enjoying “significant revenue growth” thanks to clients using its management, budgeting and reporting software.
“At the core of Gravity are complex, multi-dimensional financial models that enable our clients to instantly produce professional, publisher-quality, automated financial reports and budgets to comply with complex and evolving regulatory standards,” Isaac Gleicher, founder and CEO of IGM Technology, said in a statement.
Lead Edge Capital describes itself as a growth equity firm focused on software, internet and other technology companies. The New York-based firm has invested in companies such as China-based e-commerce giant Alibaba Group and electronic signature supplier USign.
In the investment firm's view, mirroring other areas of government technology that are attracting similar investment, IGM's products offer public agencies an opportunity to upgrade their budgeting and reporting processes. This digitization promises nothing less than a steady, reliable revenue stream for investors.
“IGM addresses a critical and underserved market where thousands of government agencies and organizations with complex reporting requirements currently use in-house or manual processes,” Dan Lin, a partner at Lead Edge Capital, said in a statement.
Following the transaction, government technology veteran Paul Colangelo will join IGM's board of directors as non-executive chairman.
Atlas Technology Group acted as exclusive financial advisor to IGM Technology on the transaction. Shea & Company acted as exclusive financial advisor to Lead Edge Capital.
