Jareva Technologies Secures $9M

Jareva Technologies Inc., a company that builds software intended to automate IT jobs, recently raised $9 million in its Series B round of venture capital financing.

Venture capital firms, Crest Communications Holdings> and Labrador Ventures>, led the round, joined by Satwik Ventures>. Greg Mockenhaupt, a partner at Crest Communications, and Sean Foote, director of Labrador Ventures, have both joined Jareva?s board of directors as part of the deal.

While it is relatively uncommon for two companies to lead a round, Foote said that in this case it is reasonable because the deal was done amongst friends and Labrador set the terms. “We have a close relationship with Crest,” he said. Crest also led the first round, which raised $1.5 million.

Not only is Labrador responsible for a little less than $3 million of the investment, it is also responsible for the name Jareva. Before the investment, the Chicago-based company was known as

“We wanted to get investors that had strategic value,” said Jagadish Bandlole, chief executive and founder of Jareva. “As of now we are well funded and can proceed with sales and marketing and get some revenue flowing.”

Revenue is expected to begin flowing in next couple of quarters, although Bandlole did not comment on when the company would reach profitability.

Foote said Labrador went in on the deal because the company?s technology could be “helpful to many of our previous investments and we have been talking with them about Jareva.” Right now, however, Jareva is talking to larger companies.”

The capital raised will be used for product development and to expand sales and marketing. The Sunnyvale Calif.-based company?s products are expected to launch within a couple weeks.

Although Foote said this second round investment is as late of an investment as Labrador would ever make, he also said that the Chicago-based venture firm usually exercises its pro-rada rights. However, he also suspects that Jareva will “be bought or go public before it has chance” to expand much more.

Danielle Fugazy can be contacted atStory Feedback.