Wilmington-based Electronic Lab Logs announced Monday it has secured a $2 million lead investment from venture capital firm Rockmont Partners.

That funding is part of a larger $3 million Series A round, which will allow the startup to grow its staff and invest in new and existing products, Lab Logs CEO Daniel Summers said Tuesday. Lab Logs is a digital platform that offers an alternative to paper logs to track maintenance and compliance in clinical laboratory settings.

The company, which began software development in 2017, has received recognition in the local and state startup ecosystem in recent years. In 2020, Lab Logs won a Coastal Entrepreneurship Award and an NC IDEA SEED grant, and it was one of two Wilmington-area startups selected to present at CED Venture Connect in Raleigh earlier this year.

In addition to Rockmont Partners’ $2 million investment, Lab Logs recently closed on another $650,000 in combined funding from Greenville, South Carolina-based VentureSouth, Atlanta-based Gray Ventures and several angel investors, Summers (pictured at right) said.

“So we're at $2.65 million now,” he said, “and we expect to close the rest in the coming weeks.”

The money will be used to grow the company’s sales team and invest in current products along with a new product line that will provide tracking for those using the platform.

“Right now, we track instrument maintenance and QC and all that,” Summers said, “and now we'll be moving into even tracking the accreditation and compliance for the users.”

The company’s news release called the investment from Rockmont Partners a “significant milestone" that will "help accelerate the company's growth trajectory and innovation, enabling it to expand its market reach and enhance its offerings.”

According to the release, Rockmont Partners targets SaaS businesses with "established market fit and a path to profitability in the healthtech and fintech industries."

Summers wrote in the release that Rockmont's "support and expertise will be instrumental as we continue to revolutionize the way clinical labs manage maintenance and compliance data, replacing outdated paper logs with our efficient, digital solution."

The release notes that Lab Logs has experienced “exponential growth” in the past three years, expanding from 12 clinical lab customers to more than 150 national and international customers. The company’s annual recurring revenue has grown an average of 49% each year during the three years, according to the release.

That growth rate drew Rockmont Partners to invest in Lab Logs, Bo Bartholomew, a managing partner at the venture capital firm and a new Lab Logs board member, wrote in the release.

“Lab Logs’ impressive growth is what caught my eye,” he wrote. “We firmly believe that we will be able to leverage our past operating experience in SaaS business models to help the company as they continue to grow, expand and capture new and exciting markets.”