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The latest investment for the Trillium Group LLC is a multimillion-dollar injection this week in ClearMomentum Inc., a Canandaigua-based developer of financial analytics software for companies that report finances.
Trillium officials would not disclose the exact amount of the investment, which comes from the Trillium Lakefront Partners III Fund. The agreement was signed Monday, with the funding in place Tuesday.
Trillium becomes the second-largest shareholder behind ClearMomentum founder John Grabski, who started the company in 2005. Trillium declined to say how big a stake it now has in ClearMomentum because of the investment.
Grabski previously founded Penn Yan-based electronics manufacturer Badger Technologies Inc. and supply chain management software firm Supplystream Inc., now located near Cleveland.
The company generates some $1 million in revenue annually and could double that in four years, Trillium general partner Kevin Phelps said. ClearMomentum employs 12 people.
"The market for this kind of software is enormous," he said. "It is feasible that this could be a $50 million software company within six or seven years."
Phelps said he thinks ClearMomentum could become an attractive target for acquisition if annual revenue surpasses $10 million.
"Once a company exceeds $10 million, they become attractive to another company because they can have an impact on their operations," he said. "When it gets to there we have an exit strategy to go out and introduce it to the right kind of people that would be interested in buying it."
Grabski and ClearMomentum colleague John Roach developed the ClearMomentum software, which Trillium uses.
"Technically, it's probably a little bit early-stage for what we typically would do with that (Lakefront Partners) fund," Phelps said. "But given the fact that we had the previous understanding of the product, and with several other factors that...