In a significant milestone in startup success, Henrico-based software company, Blue Ocean Brain, was recently acquired by Texas-based e-learning company HSI. Founded by Claire Herring, Gemma Brooks and Laura Howard in 2010, Blue Ocean Brain developed a digital professional skills development technology that offers over 1000 courses to midsize and Fortune 500 companies globally. The terms of the acquisition were not disclosed, but the sale is expected to provide the financial backing needed for the company’s growth. The acquisition by HSI aligns with Blue Ocean Brain’s business model and growth goals, especially given the recent boom in the digital learning space due to the pandemic-induced shift to hybrid and remote work models.
Introduction
From Richmond Times-Dispatch By
Founding of Blue Ocean Brain
The co-founders of Blue Ocean Brain are (from left to right) Laura Howard, Gemma Brooks and Claire Herring. Photo credit: Josh Muir
Claire Herring, Gemma Brooks and Laura Howard had an idea in 2010 to create engaging online professional development tools for employees.
Growth of Blue Ocean Brain
It took the three female founders of Henrico County-based Blue Ocean Brain three years to finalize and begin marketing their digital professional skills development technology. The business has grown ever since, now offering more than 1,000 courses to midsize and Fortune 500 companies across the world to provide as a training tool for their employees.
Acquisition by HSI
Last month, the trio sold their company to Texas-based e-learning company HSI. Terms of the deal were not disclosed.
Impact of the Sale
The sale should provide Blue Ocean Brain with the financial backing to grow the business, said Herring, who had been the company’s CEO and remains its chief learning officer.
“We just felt like they would be a great partner because they’re backed by substantial private equity, but they’re also strategic and they’re in our space,” she said about HSI.
Selection Process and Future Growth
The co-founders began receiving a lot of interest in their business beginning about 18 months ago — largely because the digital learning space was flourishing coupled with the pandemic-induced shift in the working world as companies began having a hybrid work or work-from-home schedule, she said.
In June, they began working with Transact Capital Partners, a Henrico-based mergers and acquisitions advisory firm, to seek potential buyers.
Alignment with HSI’s Goals
Blue Ocean Brain’s business model fits in with HSI’s growth goals, Herring said.
Blue Ocean Brain offers thousands of microlearning lessons on workplace topics such as diversity, equity and inclusion, leadership, handling change and communication. The company’s e-learning tools are used by businesses in all major industries in more than 50 countries around the world.
Company Expansion and Future Plans
Blue Ocean Brain has 45 employees, and is adding more, Herring said.
The company’s offices in the Innsbrook Corporate Center are growing from about 8,000 square feet to about 12,000 square feet to handle the additional workers.
“We thought [the sale] would be great for people so Blue Ocean Brain as a brand will still be in the market, all our people are not only protected, I think they’ll have new opportunities for growth,” Herring said.
Howard, who had been the company’s chief revenue officer, continues in a role to drive its sales strategy. Brooks, who was the chief operating officer, remains in an operational leadership role.
Partnership with Lighthouse Labs
In 2014, Blue Ocean Brain was in the first cohort group of Lighthouse Labs, a nonprofit business accelerator in Richmond that provides mentoring and equity-free funding to small, new companies.
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