NuTech Solutions, which develops predictive analytics and profit optimization software, has obtained more than $2 million in third-round funding from a number of angel investors, many of whom have backed the company previously.
“This will help strengthen our balance sheet and give us more cash to expand our business and look for new deals,” NuTech Chief Executive Matt Michalewicz says. “We need to show our financial strength to potential clients so they know we’ll be around for a while and can handle their business.”
Michalewicz says NuTech began putting together the round, which brings its total outside funding to $14 million since its inception four years ago, two months ago after it acquired New Mexico-based BiosGroup, another analytical software firm. By sticking with its existing investors, the company was able to complete the round quickly amid a lousy environment for technology investing.
NuTech’s software uses artificial intelligence and simulations to create an environment and evaluate how the model changes over time and is affected by changes in conditions. The programs are designed to improve financial and operational performance by predicting customer behavior and making recommendations to take advantage of those behaviors.
Although the company already boasts a blue-chip roster of clients, including General Motors, ChevronTexaco, Bank of America, Proctor & Gamble, Boeing, Dupont and the Defense Department, Michalewicz says the company is only now making a push to expand its sales and marketing efforts.
NuTech has hired 12 salespeople over the past three months, up from three, and plans call for another 10 hires by the end of the year, he says.
“We’re being careful to hire only the best people, and they don’t grow on trees so it’s taking us time to do this,” he says.
The company expects to record its first profit this year, Michalewicz says, which means it would need future outside investments only to finance rapid expansion. He says a streak of doubling revenue every year since it began also is likely to continue into next year, although he declines to provide figures.
NuTech Solutions: www.nutechsolutions.com