In Antiquity, craftsmen created exquisite mosaics by thoughtfully selecting and organizing individual stones that together, formed a greater, synergistic whole. Metaphorically, this artistic process can also aptly describe how a high-achieving startup should assemble an investor syndicate in later stage financing rounds, particularly when preparing to meet strategic needs for its next growth phase, and how the right mix of investment partners can help to get there faster and deeper.
Last week, Moogsoft publicly announced the closing of its new Series C funding of $30M (read the press release here). It’s no secret in Silicon Valley that the fundraising environment in 2016 has tightened compared to a year ago. In short, investment monies are still available but the decision criteria to release them have been raised. If a company’s performance isn’t clearly exceeding expectations for the stage it’s in, the company had better get ready for a rude awakening in terms of valuation, terms, and total funding. At the same time, companies that are clearly exceeding expectations will continue to garner investor choices, and the opportunity exists to design a solid mosaic of new investors that can catapult current market momentum to much greater levels.
The past 12 months have been very good for Moogsoft in terms of product innovation, customer adoption, and building for organizational scale. Not only are we taking significant market share from the likes of IBM Netcool, CA Spectrum, and BMC Event Manager, Moogsoft is also fortifying market leadership in key customer segments like Digital Enterprise and Cloud Service Providers. Here is a summary of our key company milestones over the past year:
- Accomplished 350% bookings growth in FY15 across all customer segments, with international sales contributing to over 40% of total revenue.
- Achieved an 80% increase in new client acquisitions across multiple industry verticals including: Digital Enterprise, Traditional Enterprise, Managed Service Providers, and Government Agencies.
- Increased number of managed production hosts to over 3,000,000.
- Launched strategic OEM and reseller agreements with Cisco, working with Cisco to help service providers effectively manage an unprecedented real-time and collaborative demand on IT and Network Operations on their path to virtualization.
- Launched strategic OEM and reseller agreement with HCL.
- Established eco-system partnerships with leading monitoring vendors like Splunk, Elastic, New Relic, AppDynamics, and Dynatrace.
- Developed over 90+ event source integrations for leading application, network, database, storage, and server event sources.
- Implemented a three-week agile release process so customers continuously received innovative features and new capabilities.
- Introduced SaaS, on premise, and hybrid-cloud versions of the Incident.MOOG platform.
- Appointed several key executives from top global technology companies such as AppDynamics and Glassdoor.
The Smart Money
We’ve all heard the cliché that it’s important to raise “smart money,” if you can. This often means different things at different funding stages for a company. In simple terms, the “smarts” in early funding stages often focuses on executive mentorship and operational support. In later stages, as the go-to-market is validated and the business begins to scale, the “smarts” should lean towards extending global networks, i.e. for broadening access to partner resources and executive-level customers. This is where the value of strategic corporate investors can be the highest.
Strategic corporate investors have matured tremendously in how and why they invest, and they are different from traditional VCs in helping grow a business. There first needs to be strategic rationale for the corporate investor (e.g. strategy support, customer introductions). They usually bring more domain expertise than a typical VC—their network, industry knowledge, operational expertise. They are often global in reach, and can help companies to accelerate their global aspirations. And finally, because of their unique and deep industry insight—since they are strategically positioned within the industry—they can shave months off the time it takes to develop a commercial relationship within their company and with their customer base. In this way, they are best considered as partners.
Building a solid investor mosaic starts with understanding priority needs to realize the next phase of the business’ growth, and then partnering with potential investors that can help to get there. At Moogsoft, we identified two key needs to continuously satisfy our broadening customer base for the future:
- Expand Our Ability to Serve Global Enterprise Customers: We have experienced clear validation by the adoption of the Global 2000 as customers, across a variety of verticals. Now we want to scale resources and support these global deployments even further, not only across North America and Europe, but now on to Asia, the Middle East, and the rest of the world.
- Expand Our Ability to Serve Global Mobile and Cloud Operators: Moogsoft has already demonstrated clear success with several large operators, and now we are ready to replicate that success across many more multi-national mobile operators, cloud and datacenter service providers.
With this in mind, we craftily selected new strategic investors to participate in our Series C that can help to fulfill our priority needs faster—companies that consistently exceed their growth goals. Moogsoft is fortunate to have this luxury, and it has taken advantage of it, building a solid investor mosaic with the perspective of a visionary designer and a skilled craftsman. Think of your investor syndicate as an exquisite work of art, one that will help you build a masterpiece of a maturing company.
Read all about Moogsoft’s Series C Round at MarketWired.com.
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