Quebec’s Coveo Raises $18 Million from Tandem Expansion Fund and Others

Quebec-based Coveo announced today that it has secured $18 million in funding. The round was led by Tandem Expansion Fund, Canada’s largest late-stage technology investment firm. All major existing investors also participated in the round, including BDC Venture Capital, Propulsion Ventures SEC and Fonds de solidarité FTQ.

The funding will support Coveo’s expansion “as the market continues to heat up for solutions that enable actionable insight from Big Data,” the company says.

Coveo’s advanced search technology redefines how people access fragmented information and collaborate around the social enterprise. Organizations are increasingly data-rich but insight-poor, fueled in large part by the data variety explosion, the inability to integrate information from legacy systems, exponentially growing social media, and the move of many organizational systems to the cloud. Coveo brings together this collective knowledge for every user, giving them actionable insights into customers, products, projects, people and more.

Coveo has grown significantly during the past several years, including several year–over-year quarters in 2012 of 80 to 100% growth in license revenue, according to the company, and has been operating “at or close to profitability.”

“Our investment philosophy is to find great companies at a stage where they are ready to take their growth to the next level,” explains Andre Gauthier, managing director of the Tandem Expansion Fund. “Coveo has invested heavily in its technology, the market timing is a perfect storm for solutions that enable greater insight into highly fragmented data, and its customers rave about the ROI of the technology. We think Coveo is about to experience explosive growth.” Andre will join Coveo’s board of directors.

“Companies are struggling mightily with big, fragmented data, and are recognizing the need for powerful information access and consolidation technologies like never before,” notes Louis Têtu, CEO of Coveo. “This is a major shift brought on by the need to better engage with customers, ensuring that every customer experience is more relevant and additive. The goal of the social enterprise is to connect customers and people at the center of all operations, and this is what Coveo enables through information.”