en.Wedoany.com Reported - Beacon Software Inc. has raised $225 million in a Series C funding round. The startup grows by acquiring and operating software businesses.
The company stated in a transaction announcement that HarbourVest and General Catalyst are the lead investors. General Catalyst previously participated in Beacon's $250 million funding round in November last year. The company's total external financing now exceeds $550 million. Toronto-based Beacon was co-founded in 2024 by Nilam Ganenthiran, former president of Instacart Inc., and venture capitalist Divya Gupta. The company acquires small, industry-specific software businesses that are profitable or near profitability, and generates returns by optimizing their financial operations.
The startup said its EBITDA has grown by more than 50% over the past year. During this period, it completed over six acquisitions. Beacon's portfolio spans multiple sectors. Its most recent acquisition is PowerUps Sports, which sells a platform for building sports club websites and managing game schedules. A few weeks ago, Beacon disclosed it had acquired RealStateAPI, which provides property data to insurance companies. Beacon described the deal as an eight-figure transaction. The company said it typically closes deals within 60 days of initiating the acquisition process. Acquired companies retain their brands and teams, and founders gain access to resources to expand adoption of their software products.
Beacon manages back-office functions such as accounting for portfolio companies, allowing employees to devote more time to growth initiatives. Teams can access external marketing and technical experts to improve products. Additionally, the company provides acquisition funding. Artificial intelligence plays a key role in the startup's portfolio optimization strategy. Beacon offers domain-specific datasets for software teams to enhance AI capabilities in their products. Earlier this year, the company partnered with OpenAI Group PBC to provide AI training resources for customers of its portfolio companies. "The cost of writing high-quality code is declining, creating a generational opportunity to modernize the technology infrastructure of underserved industries, which account for over 55% of U.S. GDP," said Ganenthiran. Beacon will use the proceeds from this funding round to strengthen its AI capabilities and acquire more software businesses. The company disclosed today that it is completing one acquisition per week.
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