Can managed services providers (MSPs) attract venture capital and angel investment dollars? The answer is absolutely yes. The latest example: Adar IT, a Chicago-based MSP focused on cloud services, has secured $2.4 million in Series A financing led by MK Capital.
Adar IT focuses on small and midsize business (SMB) customers that need cloud services. Adar IT's Private Cloud virtualizes a customer's entire IT infrastructure. Customers can access their entire virtual desktop from anywhere, including a tablet or smartphone. The company says:
"With the Adar IT cloud, your servers, desktops and software are housed in three multi-million dollar, state-of-the-art, self-sufficient facilities called data centers. Each one is protected 24/7 by high-level physical security."
Among the sound bites from the funding announcement:
- Adar IT co-founder and CEO Vadim Vladirmirsiy said his company is "a next-generation managed service provider that cares deeply about the customer experience."
- MK Capital General Partner Bret Maxwell said Adar IT delivers incredible customers satisfaction. "Adar is offering a solution today for small and medium size enterprises that historically was only available to much larger entities at a significantly higher price point," he asserted.
- BOSI Global has emerged as Adar IT’s new operating partner. "In a world where entrepreneurs chase Series A funding with marginal revenues and no profits, it is refreshing to see [ADAR IT] build a thriving high-growth company with substantial profits first," BOSI Global CEO Charlie McClary said.
Talkin' Cloud is checking to see if Adar IT has its own intellectual property or "secret sauce" that attracted venture capital dollars. Many MSPs are simply white labeling cloud services or using off-the-shelf software to build private clouds. That's a good base strategy. But to attract venture capital or angel dollars, the best MSPs are developing their own software or intellectual property to improve end-user experiences or automate customer onboarding and management.
Follow CJ Arlotta on Twitter @cjarlotta for further updates on the story above.