In the world of venture capital, we often talk about the long game. We invest in potential, in teams, and in visions that may take years to fully realize. Today, I'm thrilled to share a story that exemplifies this journey: LiveAction's acquisition by BlueCat Networks.

The Early Days: A Vision Born in Hawaii

Back in 2014, when most startups were flocking to Silicon Valley, LiveAction took a different path. Spinning out from Department of Defense work, the founding team gathered for a retreat on the North Shore of Oahu. It wasn't just about sun and surf (though I'm sure there was plenty of that). This was where the DNA of LiveAction was formed.

The team crafted a vision that would guide them for years to come: "to deliver kickass solutions to simplify the network while providing our team members an awesome personal and professional life." It wasn't just about building great tech; it was about building a great company.

Why We Invested

At Sway Ventures, we're always on the lookout for companies that aren't just riding trends but creating them. LiveAction's approach to network observability and intelligence caught our attention for a few reasons:

1. Domain Expertise: Their DoD background gave them unique insights into complex network challenges.

2. Market Opportunity: As networks grew more complex, the need for better observability tools was clear.

3. Team Dynamics: The founding team's commitment to both technological excellence and a strong company culture resonated with us.

Leading their Series A wasn't just a financial decision; it was a bet on a team we believed could go the distance.

The Growth Journey

Over the past decade, we've watched LiveAction transform from a small, Hawaii-based tech company into a global leader in network observability. It hasn't always been smooth sailing (it never is in startups), but the team's resilience and ability to innovate consistently impressed us.

Key milestones along the way included:

• Expanding from government to enterprise clients

• Developing industry-leading packet capture and analysis capabilities

• Being recognized as a Strong Challenger and Outperformer in the 2024 GigaOm Radar Report

The Power of Ecosystem

No startup succeeds in isolation. LiveAction's journey was supported by a network of investors, advisors, and partners:

• Referentia Systems, Inc. provided the initial launchpad

• Cisco Investments joined us in the Series A, bringing strategic insights

• Insight Partners later provided growth capital and expertise

• Countless advisors, including Tom Schodorf, offered guidance through the ups and downs

This ecosystem support was crucial in navigating the challenges of scaling a deep tech company.

The Exit: More Than a Financial Win

BlueCat's acquisition of LiveAction is more than just a successful financial exit for us at Sway Ventures. It's a validation of the team's vision and hard work. It's proof that you can build a world-class tech company outside of traditional tech hubs. And it's a reminder of why we do what we do as VCs – to support teams in turning bold visions into reality.

The synergy between LiveAction's observability solutions and BlueCat's network infrastructure management tools promises to create even more value for enterprise customers. It's exciting to think about what the combined entity can achieve.

Lessons for Founders and Investors

LiveAction's journey offers some valuable takeaways:

1. Vision Matters: A clear, compelling vision can align a team through years of hard work.

2. Culture is Key: LiveAction's commitment to their team's well-being was a differentiator in talent retention and productivity.

3. Patience Pays Off: In deep tech, it often takes years to realize the full potential of an investment.

4. Ecosystem Support: The right investors and advisors can provide more than just capital.

Looking Ahead

As LiveAction begins its new chapter as part of BlueCat, I'm filled with pride for what the team has accomplished and excitement for what's to come. To everyone who has been part of this journey – the founders, the employees, our co-investors, and the customers who believed in the product – congratulations.

This exit is not just a win for LiveAction and its investors; it's a win for the entire ecosystem of entrepreneurs working on complex, technical challenges outside of traditional tech hubs. It shows that with the right team, vision, and support, you can build a world-class company anywhere.

Here's to the next generation of founders who will be inspired by LiveAction's story. We can't wait to see what you'll build.