Dallas Venture Capital Joins $ 30 Million Investment Round for Software Company CoreStack
A Dallas venture capital firm has joined a $ 30 million investment round for CoreStack, a cloud governance software company based in Bellevue, Wash.
Dallas Venture Capital previously led the software company’s $ 8.5 million first round in March 2020. CoreStack’s total funding is now $ 45 million.
“CoreStack is on the cusp of exponential growth,” said Dayakar Puskoor, Founder and CEO of DVC.
The most recent funding round was led by India-based Avatar Growth Capital.
DVC has been impressed with the CoreStack team, which can attract talent from the Seattle area of Microsoft and Amazon, two of the world’s largest cloud companies, Puskoor said.
CoreStack, founded in 2016, has 100 global corporate clients and a second office in Chennai, India, according to its website. Last December, the company planned to cross $ 20 million in revenue over the next year, according to Economic times.
The startup’s other venture capitalists include Indian venture capital firm Iron Pillar and Palo Alto-based Z5 Capital.
CoreStack uses DVC’s Advantage program, which helps companies implement product and technology strategy, executive mentorship, corporate governance, business development and talent acquisition.
DVC was launched in September 2020 by two Dallas-Fort Worth tech leaders, Puskoor and Abidali Neemuchwala, who were previously CEOs of Indian tech company Wipro, worth $ 8 billion annually. It has 10 employees in two offices, one in Irving and one in Hyderabad, India.
The venture capital firm focuses on early stage business-to-business companies that specialize in emerging technologies such as artificial intelligence and cloud-based software. He looks for companies that generate at least $ 1 million in annual revenue and makes investments in the range of $ 2 million to $ 5 million.
In December 2020, the company invested $ 3.5 million in Austin-based PNAR to help it grow its AI and augmented reality business that documents property damage through smartphones.
In April, it invested $ 1 million in Austin-based Rollick Inc., a digital platform and marketing department for sellers of RVs, boats and other recreational vehicles.
DVC has invested in more than 20 tech-focused companies and has five successful exits with a combined portfolio enterprise value of nearly $ 1 billion, according to its website.
He hopes to invest in four to five companies next year, Puskoor said.