Software company LogicMonitor said on Thursday it raised $130 million, marking its largest funding round by a wide margin and setting up the California company for an Asia expansion.
LogicMonitor, a software-as-a-service, or SaaS, company that helps businesses monitor their data centers and flag possible problems, raised $130 million from Providence Strategic Growth, an investment arm of Providence Equity Partners, the company said in an interview.
Prior to this funding, LogicMonitor, founded in 2007, had raised $21 million, a relatively small sum compared to some other high-growth software companies.
“We had been flying kind of low and fast under the radar,” said Kevin McGibben, company president and chief executive.
He attributed the company’s cautious fundraising and spending habits to its location in Santa Barbara, a beach town roughly 300 miles south of Silicon Valley.
“Because we are out of the Silicon Valley bubble … it has been easier for us to look at our business and say we want to build the leading company in our space, but let’s do so prudently,” McGibben said.
He declined to provide the company’s new valuation, but said it is “not in the range of being a unicorn but we are content to not be so,” referring to the name given to venture-backed companies worth $1 billion or more.
LogicMonitor helps companies monitor their data center operations, both in physical data centers and in the cloud, and keep tabs on how applications are performing. If a problem appears, the software sends text messages and email alerts to the company’s IT team.
LogicMonitor has about 160 employees and more than 1,000 paying customers, including JetBlue, Citrix, National Geographic and Trulia, according to a company statement.
McGibben said the company’s revenue has on average doubled each year for the past five years. He declined to provide specific numbers.
The fresh funding will be used for research and development, engineering, marketing and an expansion into Asia and the South Pacific next year. McGibben said it is likely the financing will be the company’s last private round before an IPO, but he is not planning to join the public markets for at least a couple more years.