Motionsoft, Rockville, Maryland, has secured $6 million worth of funding in a Series C investment from its existing investors, the company announced.
The Oct. 27 announcement came just three days after Motionsoft announced it had hired a new CEO, John Cramp, as Al Noshirvani, Motionsoft co-founder and chairman of the board, moved into the role of chief strategy officer.
The Series C included investments by existing investors Route Sixty-Six Ventures as well as from co-founders Al Noshirvani and Hossein Noshirvani, and Edison Partners. The money will be used to increase sales and to market MoSo, which is a software system for large health club operators, and MoSoClub, which is a cloud-based gym software system with integrated payment processing for clubs that have outgrown their existing member management software.
Motionsoft also will use the funds to hire more professional staff and grow the firm’s successful full service and accounts receivable offerings that launched in early 2016.
Motionsoft received $5.5 million in funding in 2010, and as it was securing the new round of funding, Noshirvani said that board members decided the company needed operational expertise, especially on the payment side, to help with its plans to ramp up the marketing of its full service solution in 2017.
"John's expertise is in the payment side of the house," Noshirvani said.
Looking toward the future, Noshirvani said Motionsoft is looking at product development related to data access and sharing among all the parties in the healthcare continuum.
"There's a huge opportunity there," Noshirvani said. "And I think some of the value that MoSo has as a product will enable us to continue to provide information around our mantra of 'Get them, keep them, know them' to our customers so they can more effectively make decisions in regard to behavior patterns that ultimately impact retention and attrition."
Once a company gets to the point of getting Series C funding, talk often emerges of a possible public offering or a purchase of another company. Cramp didn't speak directly to a future public offering.
"My philosophy is you build businesses for the long term," Cramp said. "You make the right investments to deliver value to your customers, your shareholders and employees for the long haul. That's exactly what we are doing. In regards to when that investment is materially received is really a matter of timing in the industry."
Motionsoft acquired software company Conexion in 2009, and Cramp did not rule out purchasing another competitor.
"Clearly there is some movement to consolidate in this industry," Cramp said. "That's not surprising. I'm confident we are going to be in the mix of creating value and delivering long-term results, which is one of my views of the future here."
He added: "We will look at every option to grow the company and to drive value appreciation. The evidence of the C Series is indicative of investors who continue to support the company, and my experience is you create value and deliver results. And being able to raise additional capital to put to work in a platform that Motionsoft has built and is performing within is pretty straightforward. How those cards play out, only time will tell.