Big Money: 5 Private Equity And Venture Capital Investments In The Channel

Funding Frenzy

Venture capital firms and private equity partners have taken a strong interest in solution providers in recent years, particularly in the managed services and cloud markets. Here’s a look at five big money deals in the channel in the past two years.

For more on financing, read the rest of CRN's Channel Financing Week content.


Private equity firm Blackstone Group recently agreed to buy a majority stake in Accuvant, a security systems integrator.

Together with Blackstone, Accuvant's current management team and existing shareholder Sverica International, a private equity firm, also will invest in the deal. Although financial terms of the deal were not disclosed, according to a report from The New York Times, the deal was worth $225 million, including debt financing. Denver-based Accuvant, which provides security software, hardware and services, said it will use the capital to further expand the business and develop new security services.

Cloud Sherpas

Cloud services provider Cloud Sherpas received $40 million in Series B funding back in December 2012. The funding round was led by global VC firm Greenspring Associates and Australia-based Queensland Investment Corporation. Previous Series A investors Columbia Capital and Delta-V Capital also invested in the latest round. The Boston-based company provides cloud services and SaaS solutions from Google, and other cloud application providers. Cloud Sherpas said it would use the funding to further geographic expansion outside the U.S. and to fuel its acquisition strategy.

Single Digits

Single Digits entered a financial agreement with San Jose, Calif.-based Bridge Capital Holdings, a holding company for Bridger Bank, in April 2013 to advance and support its capital growth in expanding its high-speed guest Internet and wireless network solutions.

Single Digits said it planned to use the capital to support the expansion of its back office infrastructure, delivery of applications services into verticals beyond hospitality and services industries. Previously in 2012, the Bedford, N.H.-based networking solution provider secured $10 million in funding from Tudor Growth Equity.


In one of the biggest solution provider investments in recent history, data management services firm Utopia scored a whopping $50 million in 2012. The round was led by FTV Capital and included Liberty Mutual Insurance.

The company, based in Mundelein, Ill., used the funding to help expand its big data managed services business and move into new markets. As part of the deal, FTV Capital Partner Brad Bernstein and FTV Principal Liron Gitig joined Utopia’s board.


Vazata, which was named to CRN’s Next-Gen 250 list in 2012, raised $13 million in funding in late 2012, led by Altpoint Capital Partners and with additional funding from existing investors Ballast Point Ventures and Vazata Founder and CEO Lance Black (pictured).

The Plano-Texas-based company, which provides managed cloud hosting and data center services, said it planned to use the funds increase its geographic presence and grow its vStructure Infrastructure-as-a-Service platform. Today, the company has grown to become a co-location and cloud service provider and was named to CRN’s Data Center 100 list in 2013.