August 14th, 2017 (Bloomington, IN) – More and more apps and software services are billing by usage and consumption. Cheddar, a company whose usage based API simplifies billing for software companies, today announced $1.25 million in seed funding led by M25 Group. Cheddar is one of the first technology companies based in Bloomington, Indiana to raise institutional venture capital from outside sources. Funding came from multiple midwestern firms including Connectic Ventures in Cincinnati; Harbor Street Ventures, Warhawk Ventures and M25 Group in Chicago; SixThirty and Cultivation Capital in St. Louis, as well as Little Engine Ventures and Elevate Ventures from Indiana.
Until Cheddar, software developers were required to build or integrate usage tracking, customer communications, pricing management, overage handling, payment processing, revenue optimization and SaaS reporting into their software. Cheddar consolidates these complexities into a few API calls centered around usage. “Now teams can be up and billing immediately and at a fraction of the cost of what SaaS companies are used to,” said Mike Trotzke, CEO of Cheddar.
Marc Guyer and Mike Trotzke founded Cheddar in 2009 as part of their venture studio, SproutBox. While initially built to speed the development of startups at SproutBox, Cheddar has grown organically to bill millions each month. “Cheddar was built in Bloomington because of our access to talent, low cost of doing business, and the creativity we find in the startup community,” said Trotzke, “We’re thrilled to be one of the first of what we predict to be many venture-backed SaaS firms in Bloomington.”
“By building one of the best environments for starting or growing a business, Indiana is now seeing new tech companies like Cheddar grow from a great idea into a quickly-growing business,” said Jim Schellinger, Indiana Secretary of Commerce. “That momentum is helping advance Indiana as a national leader for tech employment, where we’re attracting top talent and increasing access to capital. We look forward to seeing what’s next for Cheddar here in Indiana.”
This seed financing allows Cheddar to actively market nationally to both startups and enterprises. “We’re fired up to bring the advantages we’ve experienced with Cheddar to the rest of the Midwest and beyond.”
Mike Trotzke, CEO
Cheddar (formerly CheddarGetter) is a usage based billing platform for SaaS companies. Based in Bloomington, IN, Cheddar’s unique combination of real time usage tracking and billing automation revolutionizes how hundreds of companies monetize. For more information about Cheddar, visit www.GetCheddar.com.