Apptega has successfully raised $15m in a combination of growth equity and third-party debt from Mainsail Partners.
According to CRN, this significant financial boost aims to advance Apptega’s development of technology that delivers continuous compliance and enhances in-house IT security and compliance automation.
Apptega specialises in lifecycle compliance solutions tailored specifically for managed service providers (MSPs). The company’s innovative platform helps streamline security and compliance processes, making them more accessible and manageable for MSPs aiming to offer these services to their clients.
The fresh funds are earmarked for several strategic areas, including ramping up the company’s research and development in artificial intelligence. This advancement will allow MSPs to deliver more efficient and profitable security and compliance guidance. “The investment will help take large language models and knowledge-based work and workflows, and the basics of being able to do things through a service provider lens, and invest it in our products so that we can continue to drive costs out,” Apptega CEO Dave Colesante explained.
In addition to enhancing product capabilities, the investment will also support Apptega’s operational expansion with a focus on increasing annual recurring revenue through channel partners. The goal is not only to boost revenue but also to foster better customer retention and improve gross margins for MSPs.
During this period of growth, Apptega has been recognised as a leader in the Security Compliance Software category by G2 for 12 consecutive quarters. The company is also experiencing a significant increase in the number of partners, with the total almost tripling over the past two years. Furthermore, Apptega has ambitious plans for revenue growth, targeting a 30 percent increase in 2024 and aiming to double this figure by 2025.
“The funding is for us to double down on investments in the channel,” Colesante shared. “It’s being able to package up compliance-as-a-service with our partners and do the same on the security scoring part.”
Prior to this funding, Apptega has consistently raised capital to fuel its growth and product development, marking a continued trajectory of success and innovation in the FinTech space.
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