Auvik Networks has raised CAD$15 million (about US$11.79 million) in Series B funding. The network RMM (remote monitoring and management) software provider will use the funds to fuel product development, MSP partner initiatives, and expansion from the U.S. into Europe, Auvik CEO Marc Morin told ChannelE2E.
Auvik specializes in network-centric RMM for switches, routers, firewalls and WiFi controllers. The cloud-based software has caught on with hundreds of MSPs, and Auvik expects to have about 1,000 MSPs onboard by the end of this year, Morin says. Moreover, Auvik's own headcount will grow from about 50 employees to 70 employees as 2017 gives way to 2018, he estimates.
Auvik originally planned to raise the Series B later this year, but existing investors Celtic House Venture Partners and Rho Canada Ventures were eager to move up the timeframe because of the company's growth, Morin says.
Auvik's New Investor, Next Moves
The process also attracted a new lead investor -- OpenView Venture Partners-- to the Series B round. That's a particularly important point. OpenView previously funded Intronis -- the MSP-centric cloud backup company that Barracuda Networks now owns. The Auvik funding reinforces OpenView's belief in the MSP sector -- and its evolution beyond the early days of RMM, backup and PSA (professional services automation).
Some venture capitalists don't necessarily understand MSP sales and business models, and the overall industry. But OpenView understood the model from the investor's Intronis days, and the VC was "eager" to get back into the sector, Morin says.
Auvik has spent the past 1.5 to 2 years getting MSPs to understand where network monitoring fits into their businesses. Going forward, the company will go deeper into network management rather than just network monitoring, Morin says.
Most of Auvik's MSP base is in North America so far, though about 10 percent of the partner base is in Europe. Referring to Europe, Morin says: "It’s time for us to lean into that market."
The company also wants to fund partner success initiatives that help MSPs to grow their businesses. "Our success and MSP success are intertwined," Morin says. "So we really want to focus on MSP success."
Auvik Partnerships, Competition
Instead of competing head-on against traditional PC and server RMM tools, Auvik frequently partners with them. Two examples include Auvik's work with ConnectWise Automate (formerly LabTech Software) and Continuum RMM.
Still, Auvik isn't alone in the network-centric RMM market. Among the potential rivals to watch:
- Within the enterprise midmarket, SolarWinds offers a range of network monitoring and management tools, The company's SolarWinds MSP business unit could someday promote those tools to its base...
- Datto recently acquired Open Mesh Networks and is building out a managed network infrastructure business for MSPs. Datto VP John Tippett is driving the networking push.
- Kaseya offers Traverse for network, cloud and distributed data center infrastructure monitoring, with Version 9.5 set to ship this quarter.
- Ninja MSP -- another RMM provider -- licensed Dell PackeTrap technology in 2016 to promote network monitoring to its base. Ninja, by the way, also expects to have about 1,000 MSPs in its ecosystem this year. We'll share more details about Ninja's growth and strategy, soon.
Even amid those rivalries, Auvik appears to be in growth mode. Armed with fresh funding, Morin intends to further accelerate that company growth.