Agosto Inc., a cloud services and development company, has secured $6.5 million to increase headcount and fund business improvements.
Minneapolis-based Agosto helps public- and private-sector businesses leverage Google Cloud products. It also owns Skykit, a cloud-based digital content management system that hit the market in 2016.
The latest capital, which is a mix of credit and convertible note, came from San Jose, Calif.-based Bridge Bank and Stamford, Conn.-based SG Capital Partners. The company has thus far avoided equity investments, Agosto President Aric Bandy said.
“We don’t want to give up equity at this stage of our rapid growth,” Bandy said. “[The capital] gives us the ability to achieve the growth numbers and then look at some equity play down the road.”
Agosto was founded in 2001 and has tripled in headcount since 2016. It has 59 employees at its Minneapolis headquarters and offices in Chicago, Toronto, Houston, Nashville, San Francisco and Los Angeles.
The company has also nearly tripled in revenue since 2016. Mike Majerus, vice president of finance for Agosto, declined to disclose the company’s revenue numbers but said it has seen 30 to 40 percent year-over-year revenue growth since 2016. The company reported nearly $16 million in revenue that year, according to Business Journal research.
Agosto started out as an IT consultancy before moving into the Google Cloud space. Its clients include the state of Wyoming, Groupon, Jaguar Land Rover and the Library of Congress.