First outside investment in 30 years makes life sciences software company a unicorn

Most software start-ups seek venture capital funding in their early stages. MasterControl, which provides quality and manufacturing software to life science companies, has waited nearly 30 years. Now, with its first outside investment, for $150 million from Sixth Street Growth, the under-the-radar company is worth $1.3 billion, CEO Jon Beckstrand told Forbes.

“Over the past 30 years, we have tried to grow as fast as possible and break even in cash flow,” says Beckstrand. "It's been interesting telling the story to potential funding partners over the past year."

Founded in 1993 as a document control company, Salt Lake City-based MasterControl got its start for years, eventually attracting more than 1,100 customers worldwide, including giants like Pfizer PFE and Thermo Fisher Scientific TMO. Its annual recurring revenue, or ARR, a metric preferred by software companies that operate on a subscription basis, is over $100 million. Its annual revenue for accounting purposes is expected to be between $120 million and $140 million for 2022.

MasterControl's software aims to simplify processes for pharmaceutical and medical device companies. Its original product was designed to help customers navigate the Food and Drug Administration's arduous regulatory approval procedures, while the new software works to root...