Despite turbulent times on Wall Street, venture capital firms and angel investors remain interested in MSP software companies. The latest evidence: Liongard has raised $10 million from Updata Partners, TDF Ventures and existing early-stage investors. The deal’s valuation was not disclosed.
Liongard’s automation software provides MSPs with unified visibility across customer IT stacks — including on-premises, hybrid and cloud systems. Roughly 2,000 MSPs run the software to speed customer onboarding, improve security, track change management and more.
Liongard previously raised $17 million in Series B funding in May 2020. Total funding since 2019 or so is likely around $33 million, according to ChannelE2E’s ongoing coverage of the company.
Venture Capital Funding and the “Path to Profitability”
The latest funding comes at a key time for both Liongard and the MSP software market. Amid rising interest rates, high inflation and falling SaaS valuations on Wall Street, numerous startups have revised their financial models. Instead of driving revenue growth at all costs, most software startups increasingly focus on a faster path to profitability.
In some cases, the updated business plans involve some headcount cuts. In Liongard’s case, the MSP software provider has generated growing revenue, but also confirmed some staff cuts in early June 2022.
Fast forward to present day (June 30, 2022), and Liongard has confirmed its next round of funding to “expand growth and set the company on a stronger path to profitability,” the company said today.
Liongard CEO Joe Alapat
In a prepared statement, CEO Joe Alapat said:
“Since working with our first MSP partners, we’ve seen time and again the power of visibility into IT data, reducing the time they spend researching customer issues and allowing them to respond faster than their peers. This investment enables us to continue to achieve our vision of delivering visibility into each element of the IT stack.”
Added Carter Griffin, a general partner at Updata:
“We are excited to deepen our commitment with Liongard. With its leading data platform for MSPs we expect continued fast-paced growth.”
Updata Partners is a technology-focused growth equity firm in Washington D.C. with over $1.5 billion in committed capital.
TDF Ventures invests in seed and Series A stage start-ups focused on software, infrastructure and services (SaaS, IaaS, XaaS). The company’s latest fund — a $150 million war chest — focuses on business process automation, vertical SaaS, cybersecurity, cloud services, and more. www.tdfventures.com.