Manchester-based digital archive company MirrorWeb said it got a $63 million growth equity investment from U.S. firm Mainsail Partners.
The investment will enable MirrorWeb to further accelerate product development and continue to grow its customer success organization, as it helps financial institutions and other regulated companies manage increasing regulatory demands.
“Regulators have never been more focused on ensuring the integrity of financial markets, protecting investors and preventing systematic risk to our economy,” said David Clee, co-founder and CEO of MirrorWeb.
“Mainsail’s investment and operational resources will help us continue to support financial institutions as they navigate this environment and to meet their compliance and digital preservation needs.”
As part of the deal, UK private equity firm Maven said it has sold a significant majority of its investment in MirrorWeb, generating a strong return on its initial investment.
The Maven funding helped MirrorWeb enter the US market, with Clee relocating to Austin, Texas.
As part of the Mainsail Partners investment, David Farsai and Garret Jackson of Mainsail Partners will join the MirrorWeb Board of Directors, along with Romir Bosu, the CEO of Nadavon Capital Partners.
Mainsail Partners has offices in Austin, Texas and San Francisco.
“MirrorWeb’s robust and user-friendly SaaS platform is trusted by organizations globally to help them keep pace with the proliferation of communication channels and proactively improve their compliance management,” said David Farsai, Partner at Mainsail Partners. “We are excited to partner with the MirrorWeb team to continue to deliver the product innovation and support that helps customers meet their regulatory goals.”
Garret Jackson, Vice President at Mainsail Partners, said: “MirrorWeb has demonstrated a commitment to delivering strong customer service and innovative products. We look forward to working with Dave, Phil, and the entire team to double down on this focus, bringing peace of mind to customers facing increasing regulatory pressures.”
Jeremy Thompson, Partner at Maven, said: “This transaction is an excellent outcome for Maven’s client funds, the management team and the business. MirrorWeb’s story demonstrates what an ambitious Manchester-based business can achieve when a talented leadership team is provided with the right support and funding.
“As well as generating significant cash proceeds, the structure of the deal also allows the Maven VCTs to retain an equity stake in MirrorWeb post-transaction, this was a key objective based on our knowledge of the business and the team who we expect to continue to deliver strong growth and shareholder value.
“It has been an absolute privilege to work with this team, led by David Clee, who have successfully opened up the US market. David’s decision to relocate to the US demonstrates his entrepreneurial drive and is a testament to his leadership.”
Clee added: “Maven supported us when we were a small start-up business, they believed in us as a management team and could see the potential in what we were trying to build. Following that original investment, they continued to support us through multiple follow-on funding rounds which were critical to the development of both our product and our commercial strategy.
“Throughout the six years we have worked together, Maven have provided genuine and valuable advice that has helped us to grow the business. The relationship between Maven and MirrorWeb has been a true partnership and I’m proud of what we have achieved together.”
Maven Capital Partners is a subsidiary of Mattioli Woods plc.