An Akron tech startup called 7signal attracted $2 million in investments last year, and has raised another $1.1 million so far this year.
The latest infusion of money: $250,000 from the nonprofit economic development group JumpStart Inc.
JumpStart, which invests in startups in the region, said Wednesday that it has agreed to invest that amount in 7signal, which specializes in wireless technology for the health-care industry and higher education.
It was about two years ago that 7signal moved to the U.S., setting up shop in the city’s business incubator known as the Akron Global Business Accelerator. The facility is in the former B.F. Goodrich complex on South Main Street downtown.
7signal, which now has eight employees, was founded by a Finnish engineer who previously worked in Finland for mobile telephone giant Nokia.
Jeff Reedy, CEO of 7signal Solutions Inc., said that JumpStart invested because it “saw that we were getting traction in the market, getting more customers, and we were building a good team.”
7signal’s software makes wireless communications connect easily and operate more reliably inside buildings such as hospitals.
Such software is important as doctors, nurses and other hospital staff rely more on such things as smartphones to receive information and to communicate with others, 7signal representatives have said.
“We have really expanded our customer base in the last three or four months,” Reedy said.
The company has seven hospital customers — including Akron General Medical Center and Akron Children’s Hospital — and seven university customers.
Reedy said the company has beefed up its sales staff thanks to the $250,000 from JumpStart and some other investment funds. The staff now includes three sales people.
Reedy, who joined the startup in mid-January, previously headed Overture Networks, a networking company headquartered in North Carolina.
JumpStart’s Mark Smith said health-care clients are “just a small slice of the potential customer base for 7signal.” The market for 7signal’s technology includes manufacturing and distribution operations that use wireless communications inside their facilities, he said.
7signal has dubbed its software Sapphire.
JumpStart, with offices in Cleveland, has invested in these area startup companies: ABS Materials Inc. of Wooster, maker of a product that removes contaminants from water; and Echogen Power Systems LLC of Akron. Echogen developed a system to recycle waste heat from industrial processes.
Earlier this year, 7signal received money from an investment fund called Akron BioInvestment Funds, designed to boost Akron’s tech industry.
While the city of Akron initiated this fund, there’s no city cash in the organization. Investors — who chipped in money to create the fund — include companies, such as Akron’s FirstEnergy Corp., and nongovernmental institutions.
Reedy has declined to say how much money 7signal received from the for-profit Akron BioInvestment Funds.
7signal also has received capital from the North Coast Angel Fund, a Mayfield Heights enterprise formed by individual investors; and Columbus-headquartered Ohio TechAngel Funds. Ohio TechAngel has more than 200 investors and partner groups throughout the state.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com.
