Ellerston Capital led the startup funding round with a $27 million contribution, and OneVentures contributed an additional $7 million to the startup company.
"Phocas is Ellerston JAADE's 6th investment, and we are excited to be joining Myles and the entire Phocas team in supporting its growth objectives. We see great strength in the products that Phocas offers, leading cloud-based SaaS BI software specializing in Data and Financial Analytics,” said Toni Korsanos, an Investment Director of Ellerston JAADE, who is joining the board of the Phocas company. “Phocas has global reach and strong potential for growth especially in the US. We look forward to a great partnership with the Phocas team and stakeholders," she said.
The Success of the Phocas Startup
The company says its progress as a startup has been substantial, with the business reaching profitability and expecting to earn over $38 million by the middle of this year.
One of the things the Chief Executive Officer of Phocas, Myles Glashier, says makes the company unique is its focus on the consumer.
"Phocas always has a razor-sharp focus on the customer,” the business owner said. “As an agile organisation, we continue to respond to their needs. Company customers will benefit from this new investment as we expand the features and functionality of the core product for our clients' sales, purchasing and executive teams. We also continue to bring business intelligence to the finance function, making financial performance analysis a daily not a monthly activity.”
The Market for a Data Analytics Software Startup Company
Glashier’s belief that the future is bright for the Phocas startup is well-grounded. The global data analytics software business market was worth a collective $60.7 billion in 2018. The business market is expected, over the next three years, to grow at a compounded annual rate of about 13%, meaning the market for a startup like Phocas is alive and well.
Chandana Gopal, research director at IDC's Business Analytics Solutions, said one of the reasons for the growth of the market that houses a startup company like Phocas is that the digitization of business is always increasing.
“There are three significant shifts happening in the BDA software market that are reflected in this forecast: First, the increasing importance of data in the modern enterprise; second, the ongoing shift to public cloud; and third, growth of artificial intelligence/machine learning (ML) as enabling technology within data management and analytics software," she said.
Given all of this, one thing is clear: the data analytics business is going splendidly, and a business like Phocas is likely not going anywhere.
About the Author
Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.