A social network for technology purchases raises $25 million

Topics: Adam Street Partners, capital investment, funding round, Information research, Jeff Diehl, Scott Abel, social network, Spiceworks, Spiceworks.com, Tenaya Capital

Spiceworks, which operates an online social network for information innovation professionals, said today it had raised $25 million in capital investment. The company plans to use the funding to expand its business and furthermore integrate e-commerce into its social network offerings.

Spiceworks says it helps some 1.4 million members discover and buy $244 billion worth of research products and services each year. At Spiceworks.com, members can create purchase lists, renew warranties and buy cloud-computing services from vendors.

"The average business in the Spiceworks network spends over $275,000 annually on research," says Scott Abel, co-founder and CEO of Spiceworks. "By marrying social networking, I.T. management and commerce, we’re transforming how businesses will discover, technology and buy products and services in the trillion dollar I.T. industry."

What Groupon

"What Groupon and Facebook are doing for commerce in the consumer market, Spiceworks is doing for I.T. buying in the business market," says Jeff Diehl, partner at Adams Street. "The company’s unparalleled blend of I.T. business applications, community and commerce has created a powerful social marketplace and more efficient channel for the research industry."