The amount of the investment was unspecified, but Troy Pearsall, executive vice president of technology practices at In-Q-Tel, said the firm typically structures 80% of its investments as non-equity "work programs" that support specific technology developments.

Adapx provides a software platform for capturing notes, drawings on maps, and other handwritten field work and integrating that information with software such as Microsoft Office OneNote, Autodesk and AutoCAD architecture drawings, and ArcGIS mapping software. People can write on regular paper or a map with a compatible digital pen and the data is then downloaded to a computer.

Pearsall said In-Q-Tel invested in Adapx not only for its ability to support government agencies, but also because the technology has broad applications in the private sector.

"That's very important to us," Pearsall said. "We're looking for companies that serve commercial markets analogous to our customers' needs."

Adapx has already seen strong uptake in the GIS and mapping industry as well as in architecture and construction industries, both of which often need to do extensive information collecting in the field, said Ken Schneider, chief executive of Adapx.

The In-Q-Tel funding provides a stamp of approval that should open doors to a new variety of public-sector agencies as well as private-sector security firms, Schneider said. In-Q-Tel's rigorous vetting process for its investments is well-known in the industry, Schneider said.

Pearsall declined to discuss specific uses of the Adapx technology by the CIA or other agencies, but said more efficient information-gathering and sharing is a priority.

"Their note-taking software really helps in information sharing, which clearly is one of the big challenges facing the intelligence community at the moment," Pearsall said.

As a strategic investor, In-Q-Tel doesn't have to worry about financial returns as much as traditional venture firms, but rather focuses on specific technology needs in the market, Pearsall added.

The 45-employee company is not profitable but is targeting mid-next year to become profitable, Schneider said, declining to discuss revenue details or valuation.

In December, the company received $10 million in Series A funding co-led by OVP Venture Partners and Paladin Capital Group. The company also announced the appointment of Ken Schneider, as new chief executive. 

By Tomio Geron
http://www.adapx.com