Brian Cruver and his team didn’t initially create AlertMedia’s emergency communications software for COVID-19 purposes, but when nearly 250 new customers joined in March, they realized they had a part to play.
“A global pandemic was not what we built it for, but this was a compelling enough event for customers to decide they needed us, and our team is working harder than ever to help them,” said Cruver, AlertMedia’s CEO.
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It also prompted the Austin-based company’s long-time investors to quickly close a $15 million round of Series C funding on Tuesday, so AlertMedia could help those companies. The investment was led by JMI Equity and included Next Coast Ventures and Silverton Partners.
Companies using AlertMedia’s software can communicate with employees through unlimited channels all at the same time with just a couple of clicks, Cruver said.
“We simplify communications all around the world, consolidating them into one experience,” he said. “We are very fortunate that our software is designed to be simple and intuitive, so the onboard and training is fast. Rather than a months-long backlog of implementation, we were able to have the 250 new customers up and running to use the software in a day.”
Over 90 percent of the new clients are using AlertMedia software to communicate about COVID-19, from informing about closures and changes in operations to instructions, Cruver said.
One of those clients is Phoenix-based air ambulance provider PHI Air Medical. The company is using the service to work with employees to ensure they are safe during emergency responses, as well as to monitor its crew, aircraft or ground units, according to Brad Olson, PHI’s emergency operations manager.
“We utilize AlertMedia on a daily basis to reach out to our employees who have come in contact with a confirmed or potentially affected COVID-19 patient,” Olson said via email. “We then send a notification to monitor each employee for 14 days after the transport to make sure they are not experiencing any adverse effects from the transport. If there is an issue that our management needs to know about, we can quickly notify them through AlertMedia.”
With the addition of the 250 clients in March, AlertMedia now supports more than 2,000 enterprise customers including HEB, Walmart, DHL, Greyhound and Healthgrades.
The Series C funding brings the company’s total raise since its 2013 inception to $57 million, according to Crunchbase data. AlertMedia last raised $25 million in January 2019 through a Series C, also led by JMI Equity.
AlertMedia’s recurring revenue in the first quarter reach $20 million, a 25 percent growth in a single quarter, Cruver said. Year-over-year growth has included doubling revenue for the past five years, as well as doubling valuation and customers, he added.
“This year, the company has been accelerating more, and that is why we are raising the rounds,” Cruver said. “This funding round–we don’t need the money–but we are padding the balance sheet to accelerate growth. Now that this pandemic has happened, we are pouring jet fuel on jet fuel at this point.”
The company has 150 employees and is hiring as fast as it can, he said. New employees are joining each week across its units, and it is looking to fill 20 different positions in Austin.
AlertMedia will also use the funding for potential acquisition opportunities. While there is not a timeline for this, Cruver said he is looking at competitors or complementary products that would be a good fit.
A natural progression
Bob Nye, general partner at JMI Equity, said the Series C was a natural progression for AlertMedia as it steps in to help companies during the COVID-19 pandemic.
“AlertMedia has been a wonderfully performing company since inception, and they have found a great product market fit to help companies communicate with employees and do it in a simple, easily scalable way. The market reception has been phenomenal,” Nye said. “In times like these, where we are all trying to do our part, AlertMedia is in a unique position to help.”
Illustration: Li-Anne Dias.