CoLab Software secures $21m in Series B funding to enhance engineering collaboration solutions

CoLab Software has successfully closed a Series B funding round, securing $21 million USD. The round was led by global software investor Insight Partners, with significant contributions from existing investors, including Y Combinator, Killick Capital, and Pelorus VC. This financial boost aims to propel CoLab’s expansion and technology enhancement, particularly in artificial intelligence, to support complex engineering tasks.

Expanding Impact in Engineering with New Technologies

Over the past two years, CoLab has witnessed a revenue surge, nearly 10x, through strategic partnerships with top-tier manufacturing organizations such as Ford, Schaeffler, and Komatsu. The CoLab Design Engagement System has been pivotal in these partnerships, enhancing the efficiency and quality of engineering design processes.

With this new funding, CoLab plans to extend its reach to new customers and further develop its technology offerings. The funds will also be invested in deepening existing customer relationships, evidenced by a remarkable 158% net revenue retention (NRR) over the last year. Additionally, CoLab is set to broaden its team, introducing 30-40 new roles in various locations, including their headquarters in St. John’s and remotely across Canada and the United States. Noteworthy executive roles to be filled include VP of Sales, VP of People, and VP of Customer Success.

Revolutionizing Engineering Collaboration

CoLab’s platform aims to revolutionize how engineering teams manage and collaborate on designs. “As products become more complex and teams more global, the need for sophisticated collaboration tools becomes crucial,” explains Adam Keating, Co-Founder and CEO of CoLab. He highlights the administrative challenges and risks associated with outdated tools, which CoLab is addressing through its innovative platform.

A significant part of CoLab’s strategy involves leveraging artificial intelligence. Jeremy Andrews, Co-Founder and CTO of CoLab, notes, “By integrating AI into our core platform, we enhance the decision-making process and automate routine tasks, pushing the boundaries of what our technology can achieve in the mechanical engineering sector.”

Future Developments and Industry Impact

Looking ahead, CoLab is gearing up to introduce new solutions at its inaugural user conference, The Design Engagement Summit, scheduled for August 27-29, 2024, in St. John’s. The event promises to showcase early product roadmaps and feature insights from industry leaders at companies like Schaeffler, Autoneum, and iRobot.

The interest in technology solutions for manufacturing and hardware engineering continues to grow, a trend supported by Josh Fredberg, Managing Director at Insight Partners and a member of CoLab’s Board of Directors. He comments on the industry’s swift adoption of cloud-based software and the potential of vertical SaaS to transform manufacturing outcomes and efficiencies.

This funding round not only underscores the potential of CoLab’s innovative solutions but also aligns with broader industry trends focusing on enhancing manufacturing and engineering efficiency through advanced technology.

CoLab Software’s approach to integrating AI into collaboration tools for engineering teams is a significant advancement in the field. By reducing the administrative load and enhancing decision-making, CoLab is poised to set a new standard in the industry. The success of this funding round reflects strong confidence in CoLab’s vision and its potential to lead transformative changes in manufacturing and engineering practices.