Delaware’s SevOne nets $50M in venture capital

Employees in SevOne’s software development department work at the company’s Pike Creek office on Monday afternoon.(Photo: KYLE GRANTHAM/THE NEWS JOURNAL)

One of Delaware’s fastest growing companies is about to grow even faster.

SevOne, a network infrastructure monitoring company based in Pike Creek, landed a $50 million investment deal this week – funding the privately-held company will use to develop new software and expand its reach around the globe.

“We’ll be investing the money … to enhance our patented technology,” said CEO Jack Sweeney. “I think you’ll see we’re going to continue to hire as we try to meet our customers’ demands.”

SevOne’s ability to attract private investment for research and development, along with an expanded global presence, has helped fuel the company’s astonishing growth in recent years – as well as cement its status as one of Delaware’s biggest success stories.

Launched in 2005 by a handful of University of Delaware graduates, SevOne’s annual revenue hit $64.5 million in 2014 – the fourth straight year the company has reported a jump of at least 60 percent.

After an intense hiring campaign, the company now employs about 500 people worldwide, with about 200 working at headquarters off New Linden Hill Road in Pike Creek.

In the coming months, many of those workers will begin moving into SevOne’s new 50,000-square-foot space at University of Delaware’s Science, Technology and Advanced Research campus – a facility frequently described as a small-scale version of Google’s legendary campus in Mountain View, California.

“I think you’ll say, yeah, we’re making a stab at it,” Sweeney said. “We’re doing it the Delaware way and not the Silicon Valley Way … But we’re trying to make it a cool, fun place to work.”

The latest round of venture capital secured by SevOne was supplied by five venture capital firms – four of which are located in Boston – including Westfield Capital Management and Bain Capital Ventures, along with Brookside Captial, HarbourVest Partners and Osage Venture Partners of Bala Cynwyd, Pennsylvania.

This week’s cash infusion is the third round of private financing SevOne has received since 2007.

Three years ago, the company received a $150 million from Bain Capital, the Boston-based global private equity firm co-founded by former Republican presidential candidate Mitt Romney.

Sweeney was the managing director at Bain until mid-2013 when he replaced former SevOne CEO Michael Phelan, who became an adviser.

Osage Venture Partners and other private investors contributed $1.5 million in 2007. Osage managing partner Robert S. Adelson now sits on SevOne’s board of directors.

SevOne’s software monitors data centers and networks for some of the largest companies in the world. The company’s software helps predict Internet bottlenecks that can slow down everything from hottest Youtube video and Netflix show to stock exchanges.

Its client list includes leading broadcast and cable companies, global investment services, telecommunications providers, device manufacturers, data centers and federal government agencies.

In addition to Delaware, the company also has offices in Philadelphia, Boston, London, Hong Kong and Moscow.

Sweeney this week said he believes SevOne will eventually become a publicly traded company.

“That’s how we’re building the company – for long-term sustainability,” he said. “And that’s what this money will do for us.”

He declined, however, to give a timetable for when the company might offer begin to offer its first round of shares.

“I don’t like to give out forecasts I can’t meet,” he said. “But I can tell you everything we’re doing in Delaware and at the other SevOne locations are centered around making sure we’re ready if the opportunity does present itself. We will be ready.”

Contact small business reporter Scott Goss at (302) 324-2281, sgoss@delawareonline.com or on Twitter @ScottGossDel.