Goldman, Sachs & Co is placing a big bet on LLamasoft, a downtown Ann Arbor-based startup that has been growing rapidly for years. The New York City-based investment banking firm is sinking $50 million into LLamasoft as part of its Series B in exchange for a minority investment and a seat on LLamasoft's board.
?Company leadership says it has been meeting with a who's who of private equity firms to further fund its growth and at the end of the day partnering with Goldman Sachs made sense because of the culture fit, the people working the deal, and access to large amounts of capital for future growth.
"We felt the most comfortable with Goldman Sachs in the end," says Toby Brzoznowski, co-founder & executive vice president of LLamasoft.
The 12-year-old company specializes in supply chain software that help optimize logistics for large corporations and organizations. Its customers include multi-national corporations in a large variety of industries, ranging from aerospace to pharmaceuticals.
The $50 million from Goldman Sachs will help fund numerous technology development and growth initiatives, such as investing in supply chains analytics and developing new applications for its customers. All of that is expected to spike LLamasoft's growth in the near term.
"We have averaged 50 percent growth over each of the last five years," Brzoznowski says. "That's revenue growth but you can’t do it without the people. We're adding a good deal of people every month."
LLamasoft has hired 75 people over the last year, expanding its employee base to a little more than 300 people worldwide. Just under 200 of them are based in downtown Ann Arbor, and about 60 percent of its new hires work in Ann Arbor. Brzoznowski is optimistic those number will remain consistent, if not increase in the not-too-distant future.
"We continue to add people at a rapid pace," Brzoznowski says.
Source: Toby Brzoznowski, co-founder & executive vice president of LLamasoft
Writer: Jon Zemke