Auvik Networks has raised CAD$20 million (roughly US$15.58 million) in Series C financing as the company continues to expand its network-centric RMM (remote monitoring and management) platform for MSPs, Auvik confirmed this morning.
OpenView led the Series C round, with participation from return investors Celtic House Venture Partners and Rho Canada Ventures. The Series C financing arrives after a Series B round in August 2017 raised CAD$15 million (roughly US$11.79 million).
It sounds like Auvik's growth has outperformed investor expectations since last year's Series B round. Ricky Pelletier, a partner at OpenView and Auvik board member, put it this way in a prepared statement:
“The Auvik team has more than executed against plan since we made our initial investment in the company last August. It’s been clear since then that with increased network reliance and complexity, the need for a product like Auvik has never been more critical. We are thrilled to double down to help Auvik ensure that no MSP is left in the dark again.”
Auvik Networks: Market Focus, Growth Strategy
Auvik's cloud-based RMM software allows MSPs to monitor such network infrastructure as switches, routers and firewalls. The company's software is widely considered complementary to PC- and server-centric RMM tools from ConnectWise, Continuum, Datto, Kaseya and SolarWinds MSP, among others.
The latest funding round will help to drive the Canadian company's international expansion. For instance, a dedicated office in the United Kingdom is coming soon -- along with an executive leader for that region.
In an email exchange with ChannelE2E, Auvik CEO Marc Morin provided more details about the Series C funding round and next moves for the company. Here's a recap of the conversation...
Auvik Networks CEO Marc Morin: His Perspectives
ChannelE2E: How long have you been exploring a Series C round, and what prompted the journey to take another funding round?
Morin: We weren't actively looking to raise another round, but our existing investors were very excited about our growth and future prospects. The raise will fuel further market and product expansion.
ChannelE2E: You've doubled both your partner base and employee headcount in the past year, according to today's announcement. Are you seeing any shifts in terms of (A) size of MSP embracing Auvik and/or (B) location/country in which the MSP is headquartered?
Morin: We’re seeing a lot of larger MSPs embracing Auvik as the broader market recognizes the importance of network management. Our emerging partners—both in North America and abroad—represent our fastest-growing market segment. We’re investing heavily in programs to support their growth.
ChannelE2E: What is Auvik's current headcount, roughly?
Morin: We're roughly 115 people worldwide.
ChannelE2E: Are there opportunities to do integrations beyond traditional PSA and RMM systems – any other areas you're looking at? For instance, ServiceNow up in the midmarket, etc.
Morin: Yes, we're working with integrators and network providers who are looking to add networking management to their product offerings.
ChannelE2E: What international offices (if any) do you have, and what international offices do you plan to open next?
Morin: We have people in the UK now and a dedicated office is in the works. In a couple of weeks, we'll be announcing our new managing director for the UK.
Auvik Networks: Potential Competition?
Auvik has certainly carved a strong niche for itself, but competition in the market may intensify over the next few months. Plus, the lines between various RMM offerings could blur. A few examples:
- Kaseya is now integrating its Traverse network monitoring platform into the company's flagship RMM offering, called VSA.
- LiveAction, led by former Datto Chief Revenue Officer Brooks Borcherding, is pushing hard into midmarket and enterprise service provider network monitoring.
- LogicMonitor, recently acquired by Vista Equity Partners, focuses on performance monitoring.
- NinjaRMM's platform has some network-centric features, and chatter about a potential funding round has swirled for several months.
- SolarWinds is expected to extend its midmarket network monitoring tools into the company's SolarWinds MSP business unit.
Many of those tools don't necessarily compete head-on against Auvik, but the list may foretell future competitive moves in the market.