LeanDNA, which makes software for manufacturers, will use the money to expand sales and marketing and broaden product development.
The company previously raised a seed round of funding led by Rony Kahan, co-founder of Indeed.
Next Coast Ventures announced in March that it had closed on an $85 million fund to invest in startups. The new firm plans to do 20 to 30 deals, with up to three-quarters of them in Central Texas.
The Next Coast fund is one of the largest raised in Austin in recent years. Last year, S3 Ventures announced a new $75 million fund to invest in tech startups. Meanwhile, Austin-based Silverton Partners is in the process of raising a new $100 million fund, according to securities filings.
LeanDNA was founded in 2011 and provides a platform that supports lean manufacturing. The company offers a suite of analytics tools and dashboards that monitor key information on inventory levels. The tools provide data that helps manufacturers reduce inventory levels, avoid shortages and become more efficient.
“We are excited to partner with Next Coast Ventures to expand our efforts in solving a pressing challenge for manufacturers,” said Richard Lebovitz, CEO of Lean DNA. “They are under constant pressure to reduce working capital while improving operational efficiency. LeanDNA provides a solution that solves these problems rapidly and creates insights our customers can immediately act upon.”
LeanDNA declined to say how many employees it currently has, but a spokesman said the company plans to add 15 people over the next quarter.
Meanwhile, Austin-based CM First Group said it has secured $1.2 million of new equity financing in a deal led by the Central Texas Angel Network and Lone Rock Technology Group. Capital Factory also participated in the round.
CM First Group provides analytical software and software migration services to IT departments and software development teams.
“Over our successful six-year history, we’ve helped more than 400 clients modernize billions of lines of code,” said John Rhodes, managing director of CM First. “The additional funding supports our continued growth and will enable us to help thousands more enterprises confidently modernize through the best possible understanding of their applications.”
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