SaaS Alerts Allocates Big Chunk of $3 Million Financing Round to MSP Investments

SaaS Alerts has opened a new round of funding to capitalize on its nine-month growth, and has introduced what it calls an industry-first MSP investment opportunity as part of it.

This latest round will raise up to $3 million of growth capital, designed to expand SaaS Alerts’ sales and marketing efforts. It will also further product development to incorporate many of the features requested by its MSP partners. The company has grown significantly since launching in January, and now supports more than 200 MSPs and over 60,000 end users on its platform.

Round of Funding Strategy

As with its initial funding round, SaaS Alerts seeks to secure those investors who truly understand the unique challenges and fast evolution of MSPs The company tapped the MSP software and IT services community to complete this round.

SaaS Alerts has allocated up to $500,000 of the current round specifically for MSPs who are interested in participating. 

SaaS Alerts’ Jim Lippie

“Over the years, the MSP community has observed countless software companies being funded by both venture and private equity, and has witnessed many of those deals resulting in strong financial exits,” said Jim Lippie, CEO of SaaS Alerts. “Meanwhile, the MSPs who have given their hard-earned dollars and valuable feedback to help fuel some of those companies have received little in return for their contributions. We’d like to provide those MSPs who believe in solving for the problems and pain points experienced by the IT services community – and especially those which relate to the growing cybersecurity threat landscape – the opportunity to not only benefit from the SaaS Alerts platform itself, but to also profit from its successful growth by becoming an investor. We feel that providing MSPs the opportunity to grow the company with us and to financially benefit from that is consistent with our goal to become the most MSP-friendly software company in the ecosystem.”  

Breaking Tradition

When companies get funding, they often go traditional routes, Lippie said. For instance, they go to a venture capital firm or for corporate equity. If they’re further along, they can leverage venture debt or bank debt. They seem to never include MSPs as potential investors.

“Being in this industry for a long time, I’ve found that a lot of these industries are doing pretty well,” said Lippie. “They know what they want from their vendor community. They know what they want for their products. If they believe in something, and they have an opportunity to invest in it, we should give them that opportunity.”

Fulfilling a Dream

Lippie has wanted to provide this opportunity from the beginning, after the company got its first round of funding. 

“When I first started at SAS Alerts, we had just raised our first convertible $500,000 note. I had the thought then; when, in the future, we needed subsequent funding rounds, I wanted to bring MSPs into the mix. So, this is something I have been thinking about now for a couple years. This is something I wanted to be able to provide.”

To participate, interested parties need only demonstrate that they either own or work for an MSP. They also need to prove that they are an accredited investor. 

Founding members of Channel Angels, Gerwai Todd and Kevin Blake will co-lead the investment on behalf of SaaS Alerts. Those interested in the SaaS Alerts investment opportunity can register for an informational webinar.