Startup LogicMonitor Raises $130 Million for Global GrowthBy
Providence Strategic Growth invests in data-center manager
Customers include JetBlue, Zendesk and National Geographic
LogicMonitor Inc., which helps companies manage their technology systems in data centers, has raised $130 million to help expand its product lineup and global reach.
With the funding, the Santa Barbara, California-based company has raised more than $150 million, Chief Executive Officer Kevin McGibben said in an interview. The investment came from Providence Strategic Growth, the growth equity affiliate of Providence Equity Partners, which has more than $45 billion in assets. The cash infusion will help the company bolster engineering, expand sales and marketing and boost its overseas presence, including in Europe.
“It’s huge for us,” McGibben said. “We’ve been waiting to take on a much bigger investment until the time we felt like we were really ready -- to make those bigger investments to build a much more significant player in the space.”
LogicMonitor helps companies manage computer servers, storage and networking in their own data centers or in the cloud. The company, which competes with rivals such as International Business Machines Corp. and Hewlett Packard Enterprise Co., has almost doubled sales the past two years, he said. It has more than 1,000 customers, he said, including JetBlue Airways Corp., Zendesk Inc., National Geographic and Trulia Inc.
The funding comes amid sluggish investments for startups this year as concerns grow about valuations and profits. During the first quarter, venture capitalists invested $12.1 billion in 969 U.S. deals -- little changed from $12 billion in 1,021 deals a year earlier, according to the MoneyTree Report from PricewaterhouseCoopers LLP and the National Venture Capital Association, based on data provided by Thomson Reuters.
While McGibben wouldn’t comment on profitability, he said LogicMonitor has a healthy financial model and has good momentum, helping it stand out as an investment.
“We’re not trying to increase our burn month over month -- quarter over quarter -- growth at all costs,” he said, while declining to comment on a valuation. “We’re actually trying to build a long-term, valuable company.”
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