The Adapx digital pen software allows intelligent note taking in the field.

It took Adapx CEO Ken Schneider a good six months to raise his company's second round of venture funding. But the persistence paid off, with the Seattle maker of digital pen software today announcing a $9 million round led by new investor UV Partners.

Second round funding deals are some of the toughest to pull off these days. Companies in that stage typically have a developed product, but have not quite achieved significant customer adoption. Winning those first customers in this economic climate can be especially difficult. 

But Adapx has been reeling them in, with Schneider saying the company exceeded sales targets last year. More than 500 organizations -- including Holland America, the Port of Seattle and Emcor -- are now using the company's software to automate the traditional pen and paper note-taking process. 

The technology allows soldiers, construction workers, geologists and others to collect information in the field utilizing a digital pen, with the Adapx software integrating that data with Microsoft Office, Autodesk, ArcGIS and other programs. 

"I think this space is taking off," said Schneider, a former Microsoft manager who expects sales to grow by more than 200 percent this year.

About half of the company's sales are tied to military or government contracts such as NASA, the Port of Seattle and the U.S. Army, which is using the technology to collect and manage field notes in connection with GIS mapping systems.

With more federal dollars expected to flow into the economy, Schneider said Adapx could benefit even more.

"We are already seeing activity pick up because of the stimulus package," he said. "The flow down of the Obama administration money is directly related to the markets we are in. It is going into infrastructure -- the building of dams, bridges, roads ... where there are large groups of mobile workers dealing with huge amounts of paper in the field -- on CAD drawings, on maps, on forms."

Adapx' low-end product starts at $349 -- including the digital pen. The enterprise product that integrates with mapping systems, Excel or Autodesk costs $1,495. Replacement pens cost $200.

Schneider declined to discuss the terms of the new financing round or say whether it was set at a higher valuation than the previous $10 million round led by  OVP Venture Partners, Paladin Capital and others. The company and the investors were satisfied with the valuation, he said.

This is likely the last round of funding the company will raise, with Schneider anticipating profitability by the middle of next year.

"I always think about money as the last money in," said Schneider, when asked if the company will need to raise more capital. "Absolutely, every CEO out there should be thinking about a B round or a C round being the last money in, and we certainly think about it that way."

Other makers of digital pen technologies also are doing well. Just two weeks ago, Oakland, Calif.-based Livescribe -- maker of the Pulse smartpen -- announced $18.6 million in funding from VantagePoint Ventures and others.

Livescribe is more focused on the consumer and education market, with Schneider saying he's very happy to see the success of the product.

"The key difference is that we are focused on enterprise and federal sector use cases," he said.

Adapx employs about 45 people, with about 30 percent in engineering and development. It plans to add five new employees this year. As part of the funding round, Jim Dreyfous of UV Partners is joining the board.