Venture Capitalist Mainsail Partners Emerges As MSP, MSSP Software Investor -

Mainsail Partners is the latest venture capital firm to increasingly support MSP- and MSSP-centric software startups.

Mainsail's latest move involves investing $37 million into Apptega, which develops an MSSP-friendly platform designed to simplify cybersecurity and compliance. Mainsail also backs Syncro — the fast-growing provider of cloud-based RMM (remote monitoring and management) and PSA (professional services automation) software led by Datto veteran Emily Glass.

About Mainsail Partners

Mainsail Partners has offices in San Francisco, California and Austin, Texas. The venture capitalist says it invests in fast-growing, bootstrapped software companies. The firm has raised over $1.3 billion and invested in more than 50 companies since 2003. The company's current software investment portfolio also includes:

Centerbase, a provider of legal practice management software;

ServiceTitan, a home and commercial services software provider;

Fullbay, a provider of software for heavy duty repair shops; and

Nexus Systems, a provider of Web-based procure-to-pay applications.

Earlier investments (no longer held) include:

Cash Management Solutions (CMS) for revenue management services;

FairWarning security software;

FieldRoutes for field service management businesses; and

SentryOne server optimization software.

MSP Software Market: Growing -- And Consolidating?

The overall MSP software market appears healthy, based on quarterly financial statements from Datto and N-able released in February 2022. Still, we could see heavy M&A activity soon. Datto apparently is exploring a potential company sale, and rival Kaseya is exploring a financial event that may include an IPO.

Meanwhile, numerous MSP software startups remain in rapid growth mode. Fast-growth names to know include Addigy, Atera, Gradient, Liongard, SuperOps.ai, and Zomentum. Also, NinjaOne is generally growing faster than its rivals and forcing increased competition vs. the likes of ConnectWise, Datto, Kaseya and N-able. Shift your eyes to the pure play MSP security market, and startups like Blackpoint Cyber and Huntress have gained critical mass.