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Involta raises $5.2 million

December 27, 2018

Involta, the Cedar Rapids-based information technology and consulting company, has successfully raised $5.2 million.

The $5.2 million is the first part of a larger round that will likely raise between $7.5 and $8 million total. Involta’s private equity group participated in the first $5.2 million and now existing investors will have the opportunity to invest in the rest of the round, Involta CEO Bruce Lehrman told Clay & Milk.

Lehrman says he hopes to wrap up the rest of the round by the end of the year.

The money raised from the round will be designated to Involta’s recent acquisition of IT|Lynk, an IT managed services firm based in Independence, Ohio.

“For us, it’s really about the evolution of services we provide to our clients,” Bruce Lehrman said.

In addition to acquiring IT|Lynk, Involta has acquired two other companies in the last year, BluPrairie and Kadium.

“BluPrairie and Kadium are really a way for us to add the public cloud capability to our portfolio, enabling clients to decide where they want their workload and to build a strategy around what makes the most sense in the new hybrid-IT world,” Lehrman said.

Involta’s recent acquistions are all part of an aggressive plan to expand their services going forward.

“We definitely wanted to do more work in the public cloud space and have more robust services,” Lehrman said. “So it really came down to can we build all that capability in-house or is it a faster path to do that through acquisition and we decided to do that through acquisition.”

Previous Coverage

Involta acquires Ohio-based firm IT|Lynk -Dec. 10, 2018

Involta acquires BluPrairie -Oct. 4, 2018

Tags: Involta raising capital startupiowa

Involta raises $5.2 million | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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