April 28, 2011, 3:55 PM

A social network for technology purchases raises $25 million

Spiceworks, which has 1.4 million members, plans to boost its e-commerce capabilities.

Lead Photo

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

Spiceworks says it helps some 1.4 million members discover and buy $244 billion worth of technology 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 technology,” 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, research and buy products and services in the  trillion dollar I.T. industry.”

Adam Street Partners, Tenaya Capital and existing Spiceworks investors led the funding round, the company’s fourth.

“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 unique blend of I.T. business applications, community and commerce has created a powerful social marketplace and more efficient channel for the technology industry.”

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