Gradient MSP raises $12.7 million CAD to launch automated billing solution

A screen capture of Gradient MSP's team in a virtual video conference through Zoom.

Calgary-based Gradient MSP has raised $12.7 million CAD ($10.25 million USD) in its all-equity Series A funding round led by Anthos Capital with participation from StoneMill Ventures, Gula Tech Adventures and Accelerate Fund III.

A brainchild of long-time business and technology entrepreneur Colin Knox, Gradient MSP was launched in 2020, and provides a business automation and integration platform for managed service providers (MSPs).

According to Knox, MSPs don’t have access to the technology needed to make better business decisions or solve administrative challenges. Gradient MSP’s field research found that the average MSP is missing out on up to 10 percent of their monthly recurring revenue billings.

“To top of the list, they are not capturing or being paid for all the services they deliver,” Knox said. “Gradient MSP is on a mission to change this reality on a global scale in 2022.”

Backed by fresh financing, Gradient MSP intends to use its new capital to launch its automated billing reconciliation solution, hire 30 team members, and expand its partner resources. According to the startup, the recent round brings Gradient MSP’s total funding to date to $13.75 million.

RELATED: MSP Corp secures $35 million from BDC Capital, CIBC to fuel acquisition efforts

Knox has led tech startups in Canada for more than a decade, working at the intersection of MSPs and IT.

Knox founded XCEL Professional Services Ltd. in August 2009, providing services such as strategic consulting and managed cloud infrastructure until the company was acquired by F12.net in May 2016.

In 2011, Knox launched Passportal, a cloud-based privileged password and documentation management solution for MSPs. Passportal was eventually acquired by SolarWinds in April 2019. Knox then joined N-able, a subsidiary of SolarWinds, to continue Passportal’s product development under SolarWinds’ ownership.

“When we see founders starting their second and third companies in Alberta, that’s a sure sign our tech sector is maturing,” Kristina Williams, CEO of Alberta Enterprise Corporation told BetaKit.

Alberta Enterprise published a report in April 2021 that found there are currently 3,083 tech companies operating in the province with 68 percent of Albertan founders having previous experience in establishing a startup.

Image courtesy of Gradient MSP

Charlize Alcaraz

Charlize Alcaraz

Charlize Alcaraz is a journalism student at Ryerson University and the business and technology editor at The Eyeopener, Ryerson's largest independent newspaper.