Tideway Secures $27 Million in Series C Funding
Scottish Equity Partners Leads Round Following Year of Explosive Growth
NEW YORK & LONDON--(BUSINESS WIRE)--Tideway, one of the fastest growing providers of IT automation software, today announced the completion of a $27 million Series C round of financing led by new investor Scottish Equity Partners (SEP). The Series C round funding brings the total equity investment in Tideway to $37.5 million, including follow-on investments from APAX, senior management and other existing investors.
“Companies with dynamic applications, and there are fewer companies that don't have such applications, cannot afford for them to go down, and ADM will become part of the infrastructure to support and maintain applications.”
Tideway will use the proceeds to drive new customer acquisition, expand its partner ecosystem, power continued product innovation and meet escalating market demand for data center optimization. Demand is being fueled by the current economic climate, in which global enterprises are seeking to reduce IT costs and operational risk while remaining competitive with new product and service offerings.
Fearghal O’Riordain, a Partner with SEP said: “Tideway has already demonstrated a clear leadership position with the most widely deployed application dependency mapping (ADM) solution in the industry. The market is still in an evolutionary phase with much innovation and growth still to come. Tideway is very well positioned to capitalize on that and to secure its position as the dominant player in an expanding category.”
The Series C funding follows a year in which Tideway doubled its installed customer base and dramatically increased revenue. The company’s growth was driven by significant new customer acquisitions across a range of verticals including financial services, telecommunications, manufacturing, pharmaceuticals and government.
In October 2007 the company launched Tideway Foundation 7.0, whose customizable automation capability offers the broadest, deepest, most up-to-date coverage of vital data center technologies and business applications. Tideway was recently named in the list of Top 10 Enterprise Management Tools by Network Computing, based on the strong performance of Foundation.
In a December 2007 article in Network World titled The Top Three IT Technologies that Matter for 2008 – and Beyond, Evelyn Hubbert, senior analyst at Forrester Research noted that in the coming year, ADM will become less secondary and more primary for companies wanting proactive management of business-critical applications. “Companies with dynamic applications, and there are fewer companies that don't have such applications, cannot afford for them to go down, and ADM will become part of the infrastructure to support and maintain applications.”
Richard Muirhead, Founder and CEO of Tideway said: “Enterprises today need a fresh alternative to the traditional legacy IT management framework vendors who are often hamstrung by M&A activity, which leaves them more focused on integration than innovation. This round allows us to continue meeting demand for simple solutions that help firms large and small cut data center costs and reduce operational risk.”
About Scottish Equity Partners (SEP)
SEP is a leading European venture capital firm with offices in London and Glasgow. The team has been investing together for 15 years and has a strong history of helping the most talented European entrepreneurs build world-class companies in the information technology, healthcare and energy-related technology sectors. SEP was recently named Venture Capital Firm of the Year. Previous investments include CSR, Atlantech Technologies, Wolfson Microelectronics, and Searchspace. SEP’s current portfolio includes leading-edge technology companies picoChip, ip.access and Zeus. Recent investments include: fabless semiconductor companies Gigle and Powervation; Pan-European delivery solutions company Kiala; flight search engine Skyscanner; virtualisation leader VirtenSys; IT analytics specialist Sumerian; medical device pioneer Stentys; and oil services technology company Futuretec. Recent exits include the $275 million sale of MTEM to PGS which has just been named Technology Venture Exit of the Year.
Further information on SEP and portfolio companies can be found at www.sep.co.uk
About Tideway Systems
Tideway Systems provides a shared platform for technologists to visualize and report on the data they need to make informed decisions. Tideway Foundation™ software continuously maps application relationships to physical and virtual infrastructure, including the dependencies between them. This single, automated view of application topology enables enterprises to cut costs, reduce risk and better manage change. Tideway is rated as a category leader by prominent analyst firms. Clients include Dresdner Kleinwort, ING, Linklaters and Mizuho Bank. For more information, visit www.tideway.com.