Sourced Group closes first financing round, raises $20 Million
Toronto-headquartered IT consultancy Sourced Group recently closed a $20 million financing round. This marks the first institutional investment for the privately held company, which has been self-funded since its founding in 2010.
Round 13 Capital, a Toronto-based venture capital firm focused on growth-stage technology companies, led the round, which also featured participation from Comerica Bank and HSBC. As part of the investment John Eckert, cofounder of Round 13, will join Sourced’s board of directors.
The consultancy has seen strong growth since its founding nearly a decade ago, driven by accelerating demand for cloud transformations. Sourced specializes in cloud strategy and implementation for regulated industries, including financial services, healthcare, telecom, and aviation.
The firm has booked a 267% increase in revenue and a four-fold increase in headcount over the past three years. Sourced is the only Canadian-owned firm with an AWS Premier Consulting Partner designation, and is also a Microsoft Gold Partner and Google Cloud Premier Partner.
With the market for cloud consulting growing exponentially, and projected by Gartner to reach $317 billion by 2022, Round 13 jumped at the opportunity to back the growing firm. “Sourced is well-positioned to meet the rapidly increasing demand for secure and compliant cloud-based IT services in regulated industries worldwide," John Eckert, cofounder of Round 13 Capital, said. "Having achieved trusted advisor status with their clients, we believe Sourced has a brand and track record that is second to none. We are thrilled to fund their next leg of growth and look forward to working closely with management to achieve their goals.”
The $20 million financing round will allow Sourced to make more aggressive global growth plans – funding potential acquisitions, accelerating product development, and expanding sales and marketing efforts. The company currently has offices in Toronto, Singapore, and Sydney.
"We've just scratched the surface when it comes to cloud computing in large, security-conscious organizations," Jonathan Spinks, CEO of Sourced, said. "It's a fundamentally different way of consuming IT that impacts people, tools, and processes across the enterprise.
“Our methodologies and intellectual property enable clients to rapidly and securely adopt public cloud platforms at scale so that they can speed innovation and reduce costs. We're excited to be partnering with Round 13 Capital, Comerica Bank, and HSBC. Having their financial support and expertise will help us execute our vision and fuel our continued growth."
