Spiceworks raises £34m investment funding to spur business expansion

Spiceworks, the social business platform for IT professionals, has raised $57 million in investment funding to aid business expansion and improve technology platforms.

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Spiceworks, the social business platform for IT professionals, announced it has raised $57 million (£35m) in investment funding to aid business expansion and improve technology platforms.

The funding round was led by Goldman Sachs, with participation from existing investors, and adds to $56 million (£34m) that Spiceworks has already raised in investments since 2006. The funding is expected to precede an initial public offering (IPO) for the company.

Spiceworks combines free network management, network monitoring and help desk software with a Facebook-like community of IT professionals. Members can use the platform to discuss issues, share advice and information on particular technologies and services, and get quotes from vendors for new products.

Spiceworks currently has five million IT professionals across 200 countries using its service, including a substantial presence in Europe. The company opened offices in London in 2011,

The company now expects to invest in the development of a new technology platform which will also support an app store. This will allow users to integrate a range of applications produced by vendors and independent developers into the central Spiceworks platform to help manage their entire IT environment.

Investments will also be made in marketing and sales to provide more insight into how IT professionals buy technology services, and improve connections between vendors and their customers.

Following the funding round, David Campbell, managing director of Goldman Sachs’ merchant banking division, has been installed on the Spiceworks board.

“The emergence of professional networks like Spiceworks represents the next wave of social innovation,” said Campbell. “Spiceworks has a unique platform for technology brands to directly access a rapidly-growing, critical, and underserved market of IT professionals that commands over $525 billion of spend today.”

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