Scalable computing systems developer Liquid Computing Inc. has received a VC round worth US$27.7 million to support its expansion in North America and Europe.

Since the beginning of this year, the Ottawa-based company has grown more than 20 per cent to 85 employees. With this new round of funding, it is looking to hire even more staff, including software developers, sales representatives and customer support staff.

The company is making a big push to expand its sales in North America and Europe, and is hiring new sales representatives for its European locations.

By next year, Liquid Computing hopes to grow to about 140 staff in total, says CEO Brian Hurley.

"We have a tremendously interesting product, and we'd like to build support for sales and operation support," he says.

Although the funding will mostly be spent in the hiring of new staff, the company will also be investing in the ongoing testing of its new products.

Ken Wigglesworth, senior managing director of lead investor Newbury Ventures Canada, says the Liquid Computing deal was a "very rare opportunity" in which to invest, despite reports of shrinking available venture capital in Canada.

"It's an extremely rare opportunity to invest in a company that's going to change the computing landscape," says Mr. Wigglesworth. "It's very dramatic."

Liquid Computing's vice-president of human resources, Mel Mulligan, says the company is going to need some top talent to fill the positions it is creating here and abroad.

He adds, "This new money is a huge endorsement to what we're doing, and for the employee base it's a reflection of the good work they've been doing over the past 12 to 24 months."

Mr. Hurley says the company expects to go for another round of funding in 2008 to strengthen its balance sheet and support sales growth.

Newbury Ventures was joined by existing investors Vengrowth, ATA Ventures, Business Development Bank of Canada, Export Development Canada, Axis Investment Fund Inc. and Dr. Adam Chowaniec, who serves as chair of Liquid Computing's board.