GroundWork Open Source Secures $12.5M Series C

By David Smagalla 2/6/2007 - Venture Wire

GroundWork Open Source Inc., an open source-based IT operations management company, has raised a $12.5 million in an oversubscribed Series C round of financing.

The Series C round was led by new investor Jafco Ventures, according to company spokeswoman Lindsay Mecca. The new financing also included new investor SAP Ventures as well as existing backers Canaan Partners and Mayfield Fund.

Tom Mawhinney, general partner with Jafco Ventures, has joined the company's board as a result of the round, said Mecca.

Proceeds from the round will be used to extend GroundWork's worldwide adoption, as well as to grow its partner network and to broaden its product portfolio, according to a press statement issued by the company.

Based in San Francisco, GroundWork develops and enhances open source systems and network management software. The company's flagship product, GroundWork Monitor, is designed to enable businesses to monitor network availability and performance through an online interface.

The company said that it has had a 400% increase in subscription revenue during 2006 while surpassing the 200 customer milestone.

Customers of its GroundWork Monitor Professional edition include the Royal Bank of Canada, Shopzilla Inc., the University of North Carolina, Sierra Pacific Industries and Yodlee Inc.

Mecca added that company has raised $24 million in total venture backing.