Enroute Closes Series A, Looks for More as It Expands and Aims for Profitability
Early-stage tech financings are still chugging along, it seems. On the heels of yesterday’s news of a $5.25 million financing of Seattle stealth startup Doxo, I checked in with Keith McCall of Bellevue, WA-based Enroute Systems, a maker of parcel-shipping management software, to hear the latest on his company’s recent financing.
McCall, the company’s founder and CEO, says Enroute has closed an oversubscribed Series A round worth a total of $810,000. That includes more than $500,000 from Keiretsu Forum Northwest earlier this year, and a new investment (as of October) from W.R. “Ford” Smith, the founder of PetSmart. Other investors include Zino Society and Puget Sound Venture Club. (The Series A round also includes $60,000 that Enroute won in Zino Society’s investment forum this fall.)
Enroute makes a Web-based software platform that helps businesses choose the cheapest and fastest delivery service—international, national, or regional carriers—to ship their packages. McCall says the software reduces companies’ shipping costs by about 30 percent.
The startup has moved into new 4,500-square-foot digs in Bellevue—near the Burgermaster and Microsoft’s original offices—as of the start of November. It is now up to a dozen employees and has signed more than 50 business customers, including Zumiez, Natural Partners, Renton Western Wear, Theo Chocolate, BikeWagon.com, and Lumber Liquidators.
McCall, who previously founded Seattle-based e-mail and communications management firm Azaleos, says he expects Enroute to be profitable in the first half of next year, and is now focused on expanding its customer base.
With that in mind, he is already getting ready to raise more money. “For those investors who would like to join our existing angel investors today, we are immediately opening a $500K convertible note, which we anticipate converting to a Series B offering in 2010,” McCall says. He adds that the next formal capital raise “is targeted as a $3 million Series B.”
McCall says that next financing round will be focused on expanding the company’s shipping-management services to Asia and Europe. “We’re interested in continuing our momentum,” he says. “There’s huge opportunity for us to significantly reduce cost for businesses of all sizes.”