Sourcepass Funding, Investors & Competitors

Sourcepass has raised $135M across 2 funding rounds, most recently a $65M undisclosed-stage round in May 2023.

Last Sourcepass funding round

$65M

Undisclosed stage · May 2023

Cumulative funding Sourcepass raised

$135M

across 2 funding rounds

Key investors in Sourcepass

  • Metropolitan Partners
  • Wedge Venture Partners

Sourcepass Overview

About Sourcepass

Sourcepass is a managed IT services provider for small and mid-sized businesses, handling cloud infrastructure, cybersecurity monitoring, productivity tools, and digital transformation through strategic acquisitions in the IT sector.


Founded

2021

HQ

United StatesNew York City, NY

Status

Privately held

Customer focus

B2B

Revenue model

Services

Sourcepass Funding History

Sourcepass has raised a total of $135M across 2 funding rounds.

Sourcepass' first fundraising round was a $70M undisclosed-stage round in March 2022. The most recent completed round was a $65M undisclosed-stage round in May 2023.

Sourcepass funding rounds

Sourcepass funding rounds
DateStageInvestorsRaisedDeal Summary
May 2023Undisclosed stageMetropolitan Partners (lead)$65MSourcepass is an IT Services and Cybersecurity provider focused on serving small and medium-sized businesses (SMBs) across North America. The company helps SMBs access innovative IT solutions and modernize their technology operations to remain competitive in a shifting technology landscape. On May 2, 2023, Sourcepass closed a Series A funding round of $65 million in additional funding, bringing total funding to $135 million. The round was led by Metropolitan Partners Group, a NYC-based private investment firm, with participation from angel investors and other institutional capital sources. Metropolitan Partners has been a key investor across multiple funding cycles, investing over $2 billion across more than 150 investments to date. The capital was designated to advance Sourcepass' strategic initiatives, including the acquisition of Proxios to expand physical presence in the mid-Atlantic states and broaden client base in healthcare, legal, and non-profit sectors. The company was also launching Quest, an AI-powered consumption platform designed for digital transformation of client operations. Sourcepass reported 2022 revenue of $100 million. The company had completed multiple acquisitions as part of its growth strategy, including Network Solutions and Technology, Inc. (NST) in early 2022 as part of a $70 million funding round. By the May 2023 round, Sourcepass was executing on a strategy of selective acquisitions and expansion of its go-to-market approach for SMB IT services procurement.
Mar 2022Undisclosed stageMetropolitan Partners (lead); Wedge Venture Partners$70MSourcepass is a managed IT services provider targeting small and medium-sized businesses (SMBs) across North America, focusing on revolutionizing IT services through acquisitions and a modern digital ecosystem. In early March 2022, coinciding with its acquisition of Network Solutions and Technology, Inc. (NST), which brought ~155 employees and a multi-state footprint, Sourcepass closed a $70 million funding round structured as debt and equity. The round was led by Metropolitan Partners Group, a New York-based private credit firm providing senior-secured loans, with participation from Wedge Venture Partners and several angel investors. The funding and NST acquisition positioned Sourcepass to accelerate growth, including targeting seven acquisitions in 2022, investing in go-to-market strategies for easier SMB IT procurement, and expanding its technology footprint. NST served as the platform for future integrations, retaining its employees and locations in New York, New Jersey, Connecticut, and Tennessee. Company leadership, including Chairman Chuck Canton, emphasized selective investor choice and alignment with Metropolitan Partners' passion for the mission. Later in July 2022, Sourcepass acquired SSD Technology Partners and Total Technology Solutions, increasing its revenue run-rate to $50 million and employee count to over 300, while adding expertise in cybersecurity, cloud, and verticals like legal, healthcare, and financial services. This reflects post-round traction in its roll-up strategy, with further acquisitions like CompuWorks and A.D.B. Services in 2023 extending its footprint.

Who has invested in Sourcepass?

2 investors have backed Sourcepass across its funding rounds, including Metropolitan Partners and Wedge Venture Partners.

Lead investors include Metropolitan Partners.


Sourcepass Investors

Investors in Sourcepass by funding rounds participated
InvestorHQRoundsRoleFirst check

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Acquisitions by Sourcepass

Sourcepass has acquired 12 companies to date.

Last acquisition by Sourcepass was on February 27th 2024. Sourcepass acquired Big Green IT for undisclosed valuation.


Latest Acquisitions by Sourcepass

Big Green IT
ADB Services
CompuWorks
machineLOGIC
Description
Big Green IT is a Denver-based managed IT services provider offering cybersecurity, cloud migration, and network infrastructure support to small and medium businesses. It delivers 24/7 monitoring through its NOC, endpoint protection via partnerships with Cisco and Microsoft, and data backup solutions using Veeam technology across Colorado.
ADB Services is a Houston-based managed services provider supporting IT infrastructure for law firms, medical practices, security firms, and enterprises. Services include cloud migration, cybersecurity, and 24/7 helpdesk from its data centers in Texas. Founded in 1998, the company deploys Microsoft Azure and Cisco solutions for clients across the southern US.
CompuWorks delivers managed IT services to small and mid-sized businesses from its location in Colorado Springs, Colorado. The provider handles helpdesk support, cybersecurity management, backup and disaster recovery, strategic planning, and IT project execution. CompuWorks offers co-managed options allowing in-house teams to retain control while accessing expert augmentation for compliance and infrastructure optimization.
machineLOGIC is a Denver-headquartered IT provider offering managed services, cloud architecture, and talent solutions to small and mid-sized businesses since 2001.
HQ CountryUnited StatesUnited StatesUnited StatesUnited States
HQ City
San Diego, CA
Atlanta, GA
Pittsfield, MA
Denver, CO
Deal Date27 Feb 20243 Oct 20233 Oct 202330 May 2023
Valuationundisclosedundisclosedundisclosedundisclosed
EV/Revenue
EV/EBITDA

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Sourcepass Competitors

Sourcepass competitors include listed companies like Infosys, HCLTech, Cognizant and Capgemini, and private ones like Groot Systems and Deel.

Public and private companies comparable to Sourcepass
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
InfosysIndiaIndiaPublicly listed$20B$4.8B$44B2.1x
HCLTechIndiaIndiaPublicly listed$14B$2.7B$35B2.3x
CognizantUnited StatesUnited StatesPublicly listed$21B$4B$27B1.3x
CapgeminiFranceFrancePublicly listed$26B$3.3B$20B1.1x
Groot SystemsNamibiaWindhoekPrivate--$30B-
DeelUnited StatesSan Francisco, CAPrivate$1.7B-$17B10.0x

Sourcepass Public Comps

Sourcepass is still privately-owned, but its public comps include Palantir, IBM, Accenture, Automatic Data Processing, Tata Consultancy Services, Infosys, Fujitsu, NEC, HCLTech and DCI Indonesia.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Palantir$4.5B$1.5B93.4x58.5x287.3x98.0x
IBM$68B$17B4.0x3.9x16.4x14.2x
Accenture$70B$12B1.6x1.5x9.6x8.0x
Automatic Data Processing$22B$6.4B5.0x4.9x17.0x16.8x
Tata Consultancy Services$28B$7.1B2.7x2.6x10.7x9.7x
Infosys$20B$4.8B2.1x2.1x8.9x9.1x
Fujitsu$22B$3.4B1.8x1.9x11.9x12.7x
NEC$23B$3.3B1.8x1.8x12.7x11.9x

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Common questions about Sourcepass

When was Sourcepass founded?Sourcepass was founded in 2021.
Where is Sourcepass headquartered?Sourcepass is headquartered in New York City, NY, United States.
Is Sourcepass publicly listed?No, Sourcepass is a private, VC-backed company.
How much funding has Sourcepass raised?Sourcepass has raised $135M across 2 funding rounds.
What was Sourcepass' last funding round?Sourcepass' last funding round was a $65M undisclosed-stage round in May 2023, led by Metropolitan Partners.
Who are Sourcepass' investors?Sourcepass' investors include Metropolitan Partners and Wedge Venture Partners.
Which companies are comparable to Sourcepass?Companies comparable to Sourcepass include Infosys, HCLTech, Cognizant, Capgemini, Groot Systems and Deel.
How many companies has Sourcepass acquired?Sourcepass has acquired 12 companies, including Big Green IT, ADB Services, CompuWorks, machineLOGIC and PROXIOS.
What was the largest acquisition by Sourcepass?The $70M acquisition of Suite3 in March 2022 is the largest acquisition Sourcepass has made to date.

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