Jan. 17, 2024

A second round of investment in less than a year is signaling strong momentum for a Sioux Falls startup.

Prismatic, an integration platform for business-to-business software companies, today announced $22 million in Series B funding to continue driving its platform innovation.

Kansas City-based Five Elms Capital led this funding round, which is the growth equity firm’s second investment in Prismatic in less than a year.

“Modern B2B SaaS (software as a service) teams juggle a growing expectation to integrate with the other software their customers use. Fulfilling these requirements is costly, time-consuming and frustrating, but Prismatic’s embedded integration platform (embedded iPaaS) provides a seamless, scalable experience that enables teams to focus on innovation,” Michael Zuercher, CEO and co-founder of Prismatic, said in a statement.

“Amid SaaS industry challenges, Prismatic’s consistent, strong quarterly growth demonstrates the pivotal role integrations play in the future of SaaS.”

The $22 million in funding primarily will fuel the expansion of Prismatic’s research and development, fostering innovation and enhancements to the embedded iPaaS platform, the company said. Its embedded integration designer is expected to drive more versatility in the ways SaaS teams can build, manage and embed integrations.

It follows $8.9 million in Series A funding announced in early 2023.

“Prismatic’s stellar growth since its Series A, achieved in less than a year, has solidified the indispensable role of embedded iPaaS in B2B SaaS companies,” said Austin Gideon, principal at Five Elms Capital. 

“We are seeing intense demand across our portfolio of B2B software companies for a platform to help augment integration capabilities. Scaling software companies are able to realize strong returns on investment by utilizing Prismatic’s platform, allowing teams to remain focused on delivering new products to customers. Partnering with this team again for the Series B gives us the opportunity to make meaningful advancements and improvements in the future of SaaS.”

The startup was recognized by software review site G2 as the No. 1 momentum leader in its most recent quarterly report, which said Prismatic is “outpacing industry growth by delivering innovative solutions that meet the evolving needs of users” and “pushing the boundaries of the market.”

“Prismatic has been a game-changer for our team,” said Colton McCormack, lead software engineer — integrations at Sisu, a client of Prismatic. “The platform’s intuitive low-code builder, marketplace and robust monitoring capabilities allow us to deliver complex integrations faster and more reliably than ever before. Whether quickly wiring up an integration using pre-built components or developing custom logic, Prismatic gives us the flexibility and customer support we need.”

 Zuercher previously founded a public safety software company, which went on to be acquired. Prismatic has about 50 team members, including about 10 in Sioux Falls, but the company is fully remote, so there’s no physical office space.