CoLab AI, an artificial intelligence (AI) engineering software company, may seek additional capital within 12 to 18 months, said co-founder and CEO Adam Keating.

The St. John’s, Canada-based company would look to raise at least USD 100m, Keating said.

Though CoLab still has the “vast majority” of its USD 72m Series C money, additional funds could accelerate growth in the rapidly evolving space and potentially support M&A, he added.

CoLab provides cloud-based software that helps engineering and manufacturing teams review product designs, collaborate on changes, and resolve issues faster during product development.

The company has eight-figure annual recurring revenue (ARR) and is projecting more than USD 100m by the end of 2027, according to Keating. Its customer net retention rate is more than 150%, and its customer acquisition cost payback period is less than 12 months, which is “uncommon for enterprise sales,” he said.

Industry multiples can reach upwards of 10x to 20x forward-looking ARR, the CEO noted.

CoLab has raised approximately USD 110m in capital, completing its Series C in November 2025. Investors include Intrepid Growth Partners, Insight Partners, Y Combinator, Liquid 2 Ventures, FundersClub, Panache Ventures, Spider Capital, Killick Capital, and Pelorus Venture Capital.

The company serves large enterprise manufacturing companies in verticals including automotive, industrial, medical devices, semiconductors, data centers, aerospace, consumer products, and heavy equipment. Business is “fairly balanced” across the US, Canada, and Europe, Keating said.

CoLab’s hundreds of customers include Lockheed Martin, GE Appliances, Johnson Controls, Ford, ASM International, and TE Connectivity. This week, the company announced a multimillion-dollar AI contract with Canadian business jet manufacturer Bombardier.

Keating and CTO Jeremy Andrews, both 31 years old, founded the business in 2017.

CoLab has grown organically to date but is now interested in acquisitions of companies with “deep, specific domain expertise” in niche areas such as electronic computer-aided design, Keating said. The company is initially focused on tuck-ins but may pursue larger deals as it scales.

It would consider targets in the US and Europe, according to Keating, who said CoLab plans to expand in Asia over the next few years and could possibly acquire a team there.

According to Keating, CoLab’s primary competition is the status quo. He noted adjacent players as computer-aided design (CAD) and product lifecycle management (PLM) vendors such as Autodesk, PTC, Siemens, and Dassault Systèmes.

Last year, in one of the largest deals in the engineering software sector, Synopsys acquired simulation software company Ansys for approximately USD 35bn, while Siemens acquired simulation and design software provider Altair Engineering for roughly USD 10bn in cash. Keating expects those transactions to spur further consolidation in the AI engineering space as buyers increasingly expand into adjacent sectors.

CoLab has around 205 employees and expects closer to 300 by the end of this year, Keating said. It uses law firm McInnes Cooper.

The company has no near-term exit plans, according to Keating, who noted an initial public offering or sale to a strategic buyer as the most likely outcome.