June 24, 2019 – St. Louis, MO – Avatara, a leading provider of outsourced IT and private cloud-based infrastructure and application solutions to businesses, announced the closing of a $10 million growth investment from an investor group led by Bank Street Capital Partners and Post Road Group. The investment will be used to enhance development of Avatara’s CompleteCloud product offering and to accelerate sales and marketing efforts as the Company solidifies its national reach.
Rob McCormick, Founder and Chief Executive Officer of Avatara, stated, “After years of building Avatara organically with internally generated capital, this investment positions us to drive explosive growth as we take advantage of the transformational adoption of private cloud and outsourced IT solutions by small to midsize businesses nationwide. We are excited to partner with Bank Street and Post Road and are looking forward to significant growth of our business.”
Ben Scully, President of Avatara, stated “We experienced record growth in 2018 as our channel partners have recognized that Avatara’s CompleteCloud is an ideal solution for their customers that are looking for a security-first private cloud infrastructure. CompleteCloud’s all-inclusive model has taken off in security conscious industries such as healthcare, defense contracting/manufacturing, engineering, and financial services. This investment will enable us to accelerate our focus on the channel partner community and better serve our customers across the country.”
The IT managed services sector is experiencing rapid growth as the implementation of remotely hosted cloud services and applications is increasingly replacing in-house server-based applications. Companies are increasingly focusing on core business competencies, and, as the complexity of IT services grows, companies are outsourcing IT to outside experts. Avatara’s product portfolio of private cloud services provides SMBs and mid-market IT the ability to meet their security and compliance needs without the necessary in-house security knowledge and expertise; additionally, eliminating the need for upfront capital expense of refreshing aging hardware and managing an IT infrastructure at their site.