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SOCIAL MEDIA NEWS: Spiceworks raises funds for its social media expansion

Social business network for the IT sector, Spiceworks closed a $25 million (£15 million) financing agreement with two new investors, private equity investment firm, Adams Street Partners, and venture capital firm, Tenaya Capital. 

The funding deal is part of a long-term plan to support the expansion of Spiceworks’ business model. This will include integrated commerce within the company’s social business network for IT professionals and technology vendors.

Jeff Diehl, partner of Adams Street Partners, said, “What Groupon and Facebook are doing for commerce in the consumer market, Spiceworks is doing for IT buying in the business market. The company’s unique blend of IT business applications, community and commerce has created a powerful social marketplace and more efficient channel for the technology industry.”

Over the next year, Spiceworks plans to deliver more social commerce capabilities, such as group purchasing deals, integrated request for quote with the leading technology vendors, and the purchasing of IT products and services built directly into the workflow of the application. 

Scott Abel, co-founder and CEO of Spiceworks, commented, “The average business in the Spiceworks network spends over $275,000 annually on technology. By marrying social networking, IT management and commerce, we’re transforming how businesses will discover, research, and buy products and services in the trillion dollar IT industry.”

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