Autotask Raises $6 Million for Global Expansion
Autotask has raised $6 million in venture capital and private equity to fund global expansion, a spokesman has confirmed. Also, a report from Albany, N.Y., quoted Autotask CFO Vince Zumbo (pictured), about the new financing. Even before the funding arrived, Autotask apparently spent $1 million on its European expansion this year, the report stated. Here are some perspectives for Autotask’s community of managed services providers and VARs.
Autotask CEO Mark Cattini described the company’s global expansion strategy to MSPmentor back in September 2011. The effort included opening an office and adding headcount in the UK, and localizing Autotask’s cloud-based software for multiple international markets. At the time, Cattini indicated that Autotask did not “need” to raise money, but if there were opportunities to accelerate the rocket ship through more funding, Cattini said he’d explore the opportunity.
A $6 Million Bet
Fast forward to the present. Autotask has apparently raised $6 million in new funding from JMI Equity, North Atlantic Capital and the Hamilton Lane private equity firm, the report stated. (Side note: The funding will not be used for former employee cash-outs.) Total funding since Autotask launched 10 years ago is now $20 million. The Albany report suggests Autoask’s board approved an effort to raise new money from existing investors earlier this year.
In the report, CFO Zumbo said Autotask will likely grow its headcount from the current 200 employees to roughly 250 to 275 employees in the next year.
Also of note: The report said Autotask’s 2010 revenues were about $20 million, but it did not estimate 2011 revenues. Autotask’s international revenues are up 80 percent this year, the report said, but actual dollar amounts apparently were not disclosed.
New Management, New Direction
Autotask has evolved dramatically in the past year. Co-founder and former CEO Bob Godgart and other veterans exited the company as Cattini, Zumbo and other new leaders built the international expansion plan.
Many of the major PSA (professional services automation) software suppliers have evolved their strategies in recent quarters. ConnectWise, through investments in LabTech Software and Quosal, is building a business management software suite for VAR and MSPs, though all software partners are welcome to plug in, ConnectWise has stated. And Tigerpaw Software continues to make investments on major software enhancements, including a forthcoming cloud move.
Autotask, meanwhile, seems to be doubling down on its core SaaS platform, while refining and enhancing it to serve international markets.