AppDirect Raised $100 Million Funding from CDPQ

The company plans to leverage CDPQ's investment to enhance its Capital Invest fund, bringing together tech providers, advisors, and buyers.

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San Francisco- and Montreal-based platform AppDirect has successfully raised $100 million from CDPQ to fuel the expansion of its financing program for small- and medium-sized tech businesses. AppDirect operates a platform connecting buyers, sellers, and IT advisors to facilitate the purchasing, selling, and management of technology.

AppDirect’s Capital Invest program is designed to empower technology advisors, offering a loan program to provide upfront payments to tech businesses. Through the program, firms can submit their business data from the past three years, and AppDirect responds with an all-cash offer, along with back-office support and provider contracts based on the firm’s annual recurring revenue. The loan structure involves annuity payments to AppDirect, ensuring a continuous revenue stream after the loan’s closing.

Emanuel Bertolin, Chief Revenue Officer at AppDirect, emphasized the need for technology merchants to have fast access to capital for accelerating growth in the dynamic market. The Capital Invest program aims to support technology advisors in expanding their businesses or investing in the future, enhancing access to innovative capital options.

Founded in 2009, AppDirect was established by Nicolas Desmarais and Dan Saks with the goal of creating a platform that simplifies the connection between business owners and technology, particularly cloud tech. The company’s tools enable businesses to monetize or purchase tech products across various channels and devices. AppDirect’s platform serves as a marketplace where tech advisors refer or resell business solutions to customers, and tech providers develop, provision, invoice, deploy, and support services.

AppDirect generates revenue through its monetization services and transaction fees from products and services traded on its platform. The company launched the Capital Invest program in 2021, and with the recent $100 million investment, the program’s total size reaches $180 million. AppDirect has raised nearly half a billion dollars in debt and equity from investors, including JP Morgan Chase, Mithril Capital Management, and Inovia Capital.

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