Rewst, a Tampa-based automation platform for managed service providers, has raised $31 million in a Series B funding round, its latest raise since 2022.
Palo Alto-based Meritech Capital led the round and joined existing investors OpenView, TDF Ventures and Florida Funders. Rewst plans to hire in Tampa, and the new capital helps fund the added employment, which is typically the most expensive part of running the company, CEO and founder Aharon Chernin said. Rewst also wants to develop its latest product further, called Application Platform.
Chernin closed on the Series B round in the same way as he did the previous round, he said. The venture capital firm reached out, and the company was a strong fit. Now, the infusion of cash is a way to return to focusing on what he cares about, he said.
“To me, it’s a relief, but not because we needed [the money],” Chernin said. “We weren’t even looking for it. It’s because now I can focus on my customers instead of focusing on closing an investment round.”
Meritech shared its excitement to be on board — they see Chernin as a founder uniquely positioned to win the market, said Alex Clayton, general partner at Meritech Capital.
“The tailwinds behind Rewst in the MSP space are massive; the technology surface area is growing,” Clayton said in a statement. “MSPs are forced to do more with less. Automation is the key to unlocking efficiency, happy customers and increased bottom lines.”
Chernin founded Rewst in 2020 to bring robotic process automation to the managed service provider industry. Its product is software that managed service providers buy to, for example, automate how they prioritize a service ticket by integrating with Slack and OpenAI. Today, the company sells to more than 700 managed service providers internationally. Rewst closed a $21.5 million Series A round led by Boston-based venture firm OpenView in 2022 and raised $2.5 million in 2021.
OpenView garnered attention from the venture capital world and the managed service provider community when it closed its seventh fund in December 2023 with plans to return the raised capital to its limited partners. But Rewst’s board members from OpenView are active, and the fund closure has had no impact on his business, Chernin said.
Managed service providers represent an undercurrent of the Tampa technology scene, comprising an ecosystem of vendors, software, services and tools. Chernin’s previous company, cybersecurity startup Perch, was acquired by Tampa unicorn ConnectWise in 2020 for an undisclosed amount. But, even with the prospering regional MSP ecosystem and growing attention, Chernin isn’t out to land another deal.
“I’ve already had an exit,” Chernin said. This time, he wants to “make the team happy, make the clients happy and automate stuff.”
