Business software maker Mavenlink Inc. has laid out an aggressive local expansion plan as it eyes an initial public offering.
The company, which makes cloud-based software to help service companies manage projects, plans to nearly double employment within 18 months to more than 320 workers at its Irvine headquarters in the Spectrum area.
Mavenlink recently signed a five-year lease to occupy 6501 Irvine Center Dr.—part of Newport Beach-based Irvine Co.’s Discovery Business Center office park—in a move that will nearly double its local footprint to 64,000 square feet when renovations are completed in the next month.
“That’s where we’ll add the next head count,” Chief Executive Ray Grainger told the Business Journal. “We’re fully at capacity at the current space.”
Mavenlink was the 18th largest software maker in OC with 165 local employees through July, according to Business Journal data. The hiring projections would place them in the top 10 and within striking distance of the five largest employers in the key technology segment.
The software maker last year added about 170 jobs, with recent expansions into the U.K. and Australia, as well as domestic ramp ups at its offices in Boston, San Francisco and Salt Lake City, where it has a software development center.
It employs about 310 companywide.
Demand for its suite of products that help service companies keep track of project workflows continues to surge as more businesses rely on external consultants and service providers, according to Grainger.
“We’re an electronic medium that brings all the talent together,” he said.
It’s won awards like Gartner’s “Cool Vendor” prize in 2015 and the American Business Awards’ Gold “Stevie” for new product software product in the cloud application/service category last year.
One customer is Chicago-based Navigant Consulting Inc. (NYSE: NCI), which uses Mavenlink’s software to bring their global consulting teams together on a single platform to streamline resource planning, staffing, services delivery, and collaboration.
Cornerstone OnDemand Inc. in Santa Monica (Nasdaq: CSOD) leverages the Mavenlink software to coordinate its global network of service delivery teams, making successful implementations of its workforce management software and financial performance more predictable.
Boston-based AMP Agency has used the software to integrate recent acquisitions and make faster, higher-quality decisions.
Experienced Execs
Mavenlink’s local hiring push recently included two key executives with experience at publicly-traded companies.
Chief Financial Officer Piero Broccardo, who held the same title at Irvine-based Accurate Background, has also held key leadership roles at Irvine-based networking gear maker Lantronix Inc. (Nasdaq: LTRX) and Hines Nurseries that included strategic planning and SEC reporting duties.
Pam DeMond, senior vice president of human resources, counts similar roles at Mophie Inc., a Tustin-based smartphone battery case maker that was sold in 2016 for at least $100 million to rival Zagg Inc. (Nasdaq: ZAGG) in Utah, as well as Oakley Inc. in Foothill Ranch, Yum Brands Inc.’s Taco Bell, and Macy’s Inc.
“We have always run this company with the intention to become a public company and we wanted to bring in the right people that could help us to do that,” Grainger said. “With the addition of Piero and Pam, our executive team is complete and when the time comes, we will be ready to take on the next chapter of this company.”
Guessing Game
The company doesn’t disclose its annual sales, making it difficult to estimate a value it might receive on Wall Street.
Mavenlink is believed to be one of the fastest-growing private companies in Orange County, but getting a true read is challenging.
Grainger did say he expects revenue to increase 60% this year, a similar uptick as the last few years.
Two fast-growing Irvine-based software companies may provide a rough estimate for revenue.
Business analytics software maker Alteryx Inc. (NYSE: AYX), which employs 627, including 180 at its Park Place headquarters, boosted sales 53% last year to $132 million. Security software maker Cylance Inc., one of the closest watched companies here, grew revenue more than 90% in its last fiscal year to over $130 million. It employs 840, including 382 at its Irvine office.
One indication of its value are its top tier backers.
Mavenlink has raised $84 million since its 2008 inception, including a $39 million Series D round in 2016 led by Goldman Sachs (NYSE: GS).
“In all likelihood we will seek additional investor capital in the next 18 months,” Grainger said.
It has several prominent OC backers as well as a number of current and former managing partners of Accenture PLC (NYSE: ACN), where Grainger spent 18 years as managing partner running the technology and aerospace business from the global consultancy’s El Segundo office.
Local Touch
Private-equity firm Carrick Capital Partners, which has offices in Newport Beach and San Francisco, has invested at least $26 million in the software maker.
Carrick co-founder and Managing Director Jim Madden in a Business Journal May article praised Grainger and his team for finding “a great niche.” Mavenlink is Carrick’s fastest-growing company, it said.
In fact, Madden has long known Grainger, having interviewed him more than 30 years ago for a job at Accenture when he was finishing his studies at Harvey Mudd College in Claremont.
Even though the pair didn’t stay in contact for decades, Madden was one of the first calls Grainger made in the run-up to Mavenlink’s launch. Madden liked the idea and helped him raise $7 million through their combined networks.
One of Madden’s first calls to potential investors was to Vinny Smith, who ran Aliso Viejo-based Quest Software Inc. at the time.
Smith, who oversaw more than 70 acquisitions and investments at the business software maker, liked the idea so much that he wanted to acquire Mavenlink outright for $25 million.
Talks progressed until details like earnouts and benchmarks ultimately derailed the deal.
Quest in 2011 ended up leading Mavenlink’s $3.9 million Series A round instead. That minority stake was ultimately acquired by Goldman Sachs.
The backing included a board seat, which Quest filled by nominating Madden, who still sits on the board.
Steve Unterberger, managing director of operations at Carrick Capital, is also a director.
Mavenlink in 2012 completed Aliso Viejo-based Octane’s LaunchPad accelerator, which helps startups formalize business plans, initiate marketing campaigns, and learn how to access and utilize capital, among other benefits.
