Detroit-based LevelEleven, a spinoff from Pleasant Ridge-based Internet marketing firm HelloWorld, has raised $2 million in new venture capital funding, primarily from current investors.
Among the new investors in LevelEleven, a sales motivation software company in the Detroit Venture Partners portfolio, are the Dallas Angel Network and the Florida-based Tamiami Angel Fund.
The funding is in the form of a convertible note, which converts into equity once Series A funding is secured. Founder and CEO Bob Marsh said he expects LevelEleven to secure Series A funding within the next year.
DVP was the lead on this latest round of funding, Marsh said.
The company will use the funding to expand its marketing campaign and hire five to 10 new sales and marketing employees in addition to the 26 employees it will have by the end of next month.
“We are a great example of the startup technology boom happening in Detroit,” Marsh said. “The company has been around less than two years and has rapidly expanded.”
LevelEleven has raised $5.5 million in venture capital to date, Marsh said.
The company, located in the Madison Building downtown, has 175 customers that include Comcast,PointRoll, Stanley Black & Decker, Tapjoy and eBay, according to a news release.
LevelEleven focuses on what is called enterprise gamification. Its lead product is an add-on software for users of Salesforce, a sales tracking software that gives companies new ways to motivate salespeople to make calls, book meetings and close deals.
Last quarter was Michigan’s best in 14 years in venture capital investing.
According to the quarterly Money Tree report issued last month by PricewaterhouseCoopers and theNational Venture Capital Association, $114.2 million was invested by venture capitalists in 11 Michigan companies in the second quarter. That dwarfed the first-quarter figure of $37.6 million invested in 14 companies.
Last quarter’s was the highest since the first quarter of 2000, when $143 million was invested in 17 companies.