Call it fuel for the fire.
Waterloo-based Auvik Networks today announced a successful Series C raise of CDN$20 million to support “a massive growth phase” that has seen it double in size in less than a year.
“We’re doing really well. Companies like our product. We’re just trying to suck the air out of the room and grow as fast as is prudent,” said Auvik CEO and co-founder Marc Morin.
An existing investor, OpenView Venture Partners, based out of Boston, led the round, supported by return investors Celtic House Venture Partners of Toronto and Rho Canada Ventures of Montreal, a division of U.S.-based Rho Capital Partners.
Last August, Auvik completed a Series B round of CDN$15 million, also led by OpenView, money that was targeted at European expansion.
“The Auvik team has more than executed against plan since we made our initial investment in the company last August,” said Ricky Pelletier, Partner at OpenView and Auvik board member. “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 [managed service provider] is left in the dark again.”
Auvik makes a software-as-a-service tool that managed service providers (MSPs) use to keep IT networks running smoothly. Many small-to-medium businesses outsource the management of their IT and internet networks to an MSP. Auvik’s cloud-based product simplifies and automates network monitoring and management.
At the time of the Series B, nine months ago, Auvik had 52 employees and Morin said he was aiming to double that within 18 months. He’s well ahead of schedule: The company now has 120 employees and he said the company hopes to reach 150 before the end of the year.
“We’re on a massive growth phase,” Morin said. “We have been for the past couple of years. We expect to continue that for the next few years, or at least for the foreseeable future. [The Series C raise] will be to support and further expand on that.”
Morin said the company wasn’t necessarily planning on raising money. But he wasn’t about to turn it down when it was offered.
“We had our plan. We had all the financing we needed,” he said. “It just came through that everyone [was] excited about what we’re doing, the fact we’re executing on what we said we were [going to do], and there was an opportunity to further accelerate.
“I say, take the money when it’s being offered.”
Morin has a well-established pedigree in the Waterloo Region tech ecosystem. The co-founder of video networking pioneer PixStream, which sold to Cisco in 2000 for US$369 million, Morin is also co-founder of Waterloo broadband services company Sandvine. He formed Auvik in 2012 with Alex Hoff and former BlackBerry CTO David Yach.
A Series C raise often heralds a potential exit as investors look for a return. Morin said his plan, for now, is to keep his head down and continue building Auvik.
“I talk to everybody,” said Morin. “You never know. If a merger makes sense, and that accelerates our mandate, that’s great. But it’s really about making sure we’re achieving our mandate.
“I always say you build a company based on a product that people want. Go after a real market. There are always people who are interested, knocking on the door. I probably get calls every month.
“You never build companies for those purposes, but if someone thinks they can add value to your company more than you can, then they buy you, otherwise you keep on the journey.
“I wouldn’t say there’s a predetermined outcome. But make no mistake: I’ve taken institutional money. They want their money back. You have to come up with liquidity one way or the other.”
