Beacon raises $225M to acquire and optimize software companies
Beacon Software Inc., a startup that buys and operates software businesses, has raised $225 million in Series C funding.
The company stated in its announcement of the deal today that HarbourVest and General Catalyst were the lead inventors. The latter firm also backed Beacon’s previous $250 million round last November. The company’s total outside funding now exceeds $550 million.
Toronto-based Beacon was launched in 2024 by Nilam Ganenthiran, the former president of Instacart Inc., and venture capitalist Divya Gupta. It buys small, industry-specific software businesses that have either achieved profitability or are close to it. Beacon realizes a return on investment by boosting its portfolio companies’ financial performance.
The startup says that its EBITA, or earnings before interest, taxes, depreciation and amortization, has increased by more than 50% in the past year. It closed more than a half dozen acquisitions in that time frame.
