Avatara has closed $10 million in investor financing to enhance development of its CompleteCloud infrastructure product, and to accelerate sales and marketing efforts.
The investor group was led by Bank Street Capital Partners and Post Road Group. CompleteCloud offers hardware refresh, storage, support, disaster recovery, security, software license and full mobility services.
Rob McCormick, Avatara’s founder and CEO, tells Channel Partners his company has been rapidly growing its partner network for CompleteCloud.
“The influx of capital allows Avatara to continue that growth curve while enhancing our support programs for our partners,” he said. “Specifically for our partners, this would include enhanced lead generation, training and sales support.”
The investment validates CompleteCloud as a “leading option in the rapidly growing cloud infrastructure space,” and allows the company to focus entirely on product enhancement and channel growth with no continuing need for additional capital, McCormick said.
“Since the introduction of our partner channel six years ago, Avatara has doubled our revenue every year because we sell completely through our channel,” he said. “We value the relationships and partnerships we’ve built with our partners and we know this is the way we are not only going to grow our business, but theirs as well.”
Avatara’s solution allows partners to pursue larger businesses than they’ve previously been able to go after, easily targeting 30-600 users, McCormick said.
“They can pursue industries they haven’t been able to before — [health care], defense contractors, banks, engineering/architecture firms, multilocation manufactures or distributors,” he said. “Partners earn healthy MRR, which stays on the books since we have a 94% retention rate with our clients.”
Also, dedicated regional sales managers help find and win new deals, McCormick said.
“Some partners like actually pitching prospects, where others know it isn’t their strength and prefer to have their Avatara sales rep do the pitch so they can take a more consultative role in those meetings.,” he said.
“Our partnership with Avatara has transformed our business in ways we didn’t anticipate and has allow us to go after opportunities we wouldn’t have been able to go after without them,” said Michael Hladczuk, CEO of Integrated Technology Services. “In two years with them we have built our CompleteCloud revenue to over $3 million annually. It has been the best partnership move we’ve ever made.”