Smartsheet Raises $1.25M from Madrona Venture Group, Others

Bellevue, WA-based Smartsheet has raised $1.25 million in Series B funding, says co-founder and executive chairman Brent Frei, on his blog. Investors included Madrona Venture Group and Frei himself. Smartsheet makes software that companies use to manage team-based projects and track outsourced tasks, as an alternative to Excel spreadsheets, e-mail folders, and the like.

Frei, on his blog, says he’s putting his money “where I know the team, product and plan are stable and growing.” He continues, “Our modest $1.25M B round should take us to profitability in 2010 and beyond. Plus, there’s no better time to double down on yourself than when the tailwinds are out of everyone’s sail and you have strong rowers.”

He touts his company’s capital efficiency, quality product, and strong customer base. “I’m looking forward to this year, even amidst the challenges due to a struggling economy,” he writes. “It’s a good bet to invest my own money in an extremely affordable, well-designed online service that will likely be the tool of choice for those downsized businesses trying to eek more productivity from fewer staff. It’s a great bet to invest in this team.”

Two months ago, Frei told me that Smartsheet aims to help workers collaborate better in multiple locations, and to become the “Google of team-task management.” So far, so good. According to Frei, the company (which he started in 2005) has registered more than 65,000 users in more than 30 countries.

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