SpringCM raises $25M for new hires, new data center

February 8, 2017

Chicago tech's 2017 funding wave shows no sign of slowing down.

SpringCM, a Chicago-based cloud software company, announced on Wednesday that it has raised a $25 million round from Texas investment fund Crestline Investors.

The company told Crain’s that the funding will be used to expand its Chicago-based technology team and make hires in sales and service. The company will also be upgrading its infrastructure with a data center in Europe.

SpringCM is the maker of a contract and document management application that is built on top of the Salesforce cloud platform, and is used by organizations like Blue Cross Blue Shield, the United States Department of Agriculture and Uber.

The company has gained enormous momentum in the last year, opening its first international office in May 2016 and raising a $17.5 million round that June. At that time, the company also added former Salesforce executive Dan Dal Degan to its board of directors.

Along with the $25 million round, the cloud software provider also announced that Degan will be taking the helm as its new CEO. Founder and former CEO Greg Buchholz will stay on as president and chief operating officer.

"When I joined the board, the plan was for me to spend most of 2016 on the board, and for Greg and me to work together and design a growth plan," said Degan. "Greg reached out to me and asked me to do this. I was very excited, and for nine months, we did that together."

Over time, Degan said, the pair reached the conclusion that the best path forward would be for the two of them to execute on that plan together.

To that end, Degan will head up SpringCM's client-facing operations, while Bucholz will continue to take point on development, finances and other internal operations.

SpringCM currently employs 120 people, the vast majority of whom are based in Chicago. Degan said that number will increase "substantially," but declined to share specific numbers.

A Chicago native, Degan has spent most of his career working for Silicon Valley companies, including an 11-year stint at Salesforce. Over the course of his 30-year career, he's become increasingly excited about the Chicago tech ecosystem.

"There are a lot of opportunities for talented young engineers, marketing and salespeople who seek a career in technology," said Degan. "You can make a great career at Chicago tech companies. It's on."

SpringCM's investors include Foundation Capital, North Bridge Venture Partners, Bluestem Capital, Square 1 Financial, Panorama Partners and Wellington Financial.

Image via Shutterstock.

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