Tercera Portfolio Company Growth Outpaces the IT Services Industry in 2023

News provided by

Jan 30, 2024, 09:30 ET

Recently named an "Investment Trailblazer", Tercera celebrates its third year supporting technology professional services firms and announces a number of milestones

CHICAGO , Jan. 30, 2024 /PRNewswire/ -- Tercera, an investment firm supporting growth-stage IT services firms, today reported that its portfolio of cloud-focused consultancies and managed service providers grew more than 30% year-over-year – more than three times the growth rate of the overall IT services market in 2023. The firm also received the 2023 Investment Trailblazer award by Tech Trailblazers for its innovative approach to investing.

Tercera, one of the only growth equity firms dedicated exclusively to technology services, has developed a reputation for identifying fast-growing software ecosystems with strong services potential, and investing in the leaders within those ecosystems.

Four of Tercera's portfolio companies have been designated Partner of the Year by their strategic software partners in the last 18 months, a designation that highlights their traction and market leadership. These include:

BeyondID as Okta's Americas Partner of the Year
Hakkoda as Snowflake's America's Innovation Partner of the Year
Orium as commercetools' Enterprise Partner of the Year
Valiantys as Atlassian's Partner of the Year

"We're privileged to work with some of the best services leaders in technology, and extremely proud of the results they've achieved during what was a tough economic year for many," said Chris Barbin, CEO of Tercera. "The performance of our portfolio shines a light on the significant market opportunity for IT services companies –a market poised for greater growth with the rise of AI."

Tercera tracks the top cloud ecosystems and AI adoption

In 2023, Tercera released its second annual Tercera 30 report, highlighting nine new promising ecosystems. Tercera's investments currently service 14 of the software ecosystems covered in the Tercera 30 – including Atlassian, Azure, Box, Databricks, Drata, commercetools, Contentstack, Dataiku, Fluent Commerce, Google, Okta, OneStream, Salesforce, Snowflake and Stripe.

AI was a consistent theme across the Tercera 30, and plays a role in four of the six trends that Tercera believes will impact services firms in 2024. Read here for more on these 2024 trends.

"AI is expected to provide significant tailwinds for IT professional services companies in the next few years," continued Chris Barbin. "Those who can effectively harness it will grow faster than their peers and be seen as a partner of choice."

Tercera expands its Advisor Community

In 2023, Tercera also added four new advisors to its highly regarded Advisor community, a curated group of proven professional services specialists and executives who act as an extension of the Tercera team. Mike Epner, Asna Jadeja, Rich Lyons, and Reem Seghairoun bring a wealth of knowledge, decades of cloud and consulting experience, and relevant industry connections to help Tercera portfolio companies with their strategies and growth tactics.

Useful Links
Dive into the Tercera 30: https://tercera.io/the-tercera-30/
Read more about the AI journey for services firms: https://bit.ly/3Ojw9kY
More resources of IT services firms: https://tercera.io/resources/
Follow Tercera on LinkedIn: https://www.linkedin.com/company/tercera-io/

About Tercera
Tercera is an investment firm founded to accelerate the growth of people-centric businesses. Specializing in the $1 trillion IT services market, the Tercera team is composed of invested operators who know first-hand what it takes to build and scale a successful cloud services business. Tercera is on a mission to identify the ecosystems and service providers that will lead the cloud's third wave, and provide them with the capital, counsel and connections they need to scale faster.

SOURCE Tercera