Galway-based software start-up Altocloud has raised $2 million in venture capital funding to scale up its US business.

The funding round, led by Delta Partners, Digicel Group and ACT Venture Capital, brings total investment in Altocloud to $3 million.

Altocloud chief executive Barry O’Sullivan said the funding will be used to grow the company’s US business, and increase employee numbers.

At present, the start-up employs 12 people in Ireland and three in the US. He hopes to increase this number to 25 by year-end, hiring seven new staff in Ireland and three in the US.

“We are currently hiring software engineers and product managers in Ireland, and sales people in the US,” he said.

The company has also announced the commercial availability of its predictive communications platform for customer sales and engagement.

The software-as-a-service solution combines machine learning with real-time communications, and delivers tailored chat, voice, video and content so customers get the information and help they need at exactly the right moment.

Mr O’Sullivan said the cloud-based software helps businesses communicate better with customers, so customer can avoid “that horrible automated voice that says press one for this, press two etc”.

“There is a better route to digital customer engagement than yesterday’s 1-800 numbers, random chat pop-ups and disjointed telephone conversations,” he added.

Companies doing business online can reach out to prospects at a timewhen they’re most interested, to drive increased sales.

Mr O’Sullivan said Altocloud has just come out of beta testing with 20 customers including AppDynamics, ThinkHR, Moxi Works and Smyths Toys.

Founded in 2013, Altocloud is based in Galway and Silicon Valley. The company previous received an investment of $1 million from Enterprise Ireland and angel investors.