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StorageCraft Funding: $187 Million, New CEO Joins From Dell SonicWall

StorageCraft CEO Matt Medeiros

New StorageCraft CEO Matt Medeiros joins from Dell SonicWall

StorageCraft has scored $187 million in private equity funding from TA Associates, and named Dell SonicWalll security veteran Matt Medeiros as its new CEO, the data protection and backup company said today. The StorageCraft private equity funding is the latest in a growing list of investment dollars flowing toward MSP-centric software companies.

UPDATED: January 13, 2016, 12:25 p.m. ET: ChannelE2E’s interview with Matt Medeiros and VP Curt James.

Funding from TA Associates is expected to be official later this month. Financial terms, ownership percentages and valuations have not been disclosed — though we’d welcome industry leaks with the details.

StorageCraft’s backup, disaster recovery and data protection solutions are supported on-premises by 8,000 VARs, and available on a subscription basis from 3,100 managed services providers (MSPs), the company said.

TA's Jonathan Meeks

TA’s Jonathan W. Meeks

Just how big is StorageCraft’s industry footprint? The company serves more than 10,000 MSPs either directly or indirectly, according to Jonathan W. Meeks, managing director of TA Associates and now a StorageCraft broad member. That lofty figure likely includes StorageCraft key OEM agreements and partnerships with many key MSP industry software providers.

Medeiros, meanwhile, joins StorageCraft from Dell SonicWALL, a business he has led since 2003. (Ironically, Dell Security named a new sales leader — FireEye’s former channel chief — yesterday.) Previous roles for Medeiros include key positions at Apple Computer, NeXT Computer and Phillips Electronics. He succeeds co-founder and former CEO Jeff Shreeve. ChannelE2E is working to determine if Shreeve remains with the company.

StorageCraft Funding, Growth Plans

Curt James

Curt James

StorageCraft will levarage the TA Associates investment to accelerate its international business — while continuing to focus specifically on channel partners, according to Medieros. StorageCraft veteran Curt James remains VP of marketing and business development for the international push.

It’s been awhile since I caught up with James. From about 2010 to about 2012, James has previously told me, StorageCraft’s revenues were growing more than 100 percent annually. I don’t know if StorageCraft has been able to maintain that growth rate in recent years but I’m poking around for clues.

Anecdotal evidence suggests StorageCraft has remained a growth business. The company in April 2015 opened a new Draper, Utah-based headquarters — a125,000-square-foot facility. Moreover, StorageCraft in 2015 opened an international headquarters in Cork, Ireland. Plans for a Japan office were also underway in 2015, though we don’t know if the office has opened its doors. 

MSP Software Attracts Private Equity Dollars

A growing list of MSP-focused software and cloud companies have attracted private equity and venture capital dollars in recent months.

Datto, for instance, raised $75 million in Series B funding and achieved a $1 billion-plus valuation in late 2015. That business continuity provider has also maintained profitability during its growth. Other PE- or venture-backed MSP industry players include Autotask, Continuum, eFolderKaseya and LogicNow. Also, SolarWinds, which owns the N-able MSP software platform, also is shifting from a publicly traded company to a private equity-owned business. And Ninja MSP, another startup, may announce funding sometime this month. (Side note: What funding deals did I forget to mention?)

Still, the overall MSP software industry has lived a mixed life. The private equity dollars show plenty of investor interest, but in some areas they reveal the industry’s inability to launch larger, high-profile IPOs (initial public offerings).

Nevertheless, companies like StorageCraft have strong track records of growth. And private equity funding from TA Associates should potentially accelerate that growth.

Note: ChannelE2E is scheduled to speak with StorageCraft leadership about the funding today and will update our coverage throughout the day.

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