Seva snares $2.4M seed investment to find info across cloud services

Seva, a New York City startup, that wants to help customers find content wherever it lives across SaaS products, announced a $2.4 million seed round today. Avalon Ventures led the round with participation from Studio VC and Datadog founder and CEO Olivier Pomel.

Company founder and CEO Sanjay Jain says that he started this company because he felt the frustration personally of having to hunt across different cloud services to find the information he was looking for. When he began researching the idea for the company, he found others who also complained about this fragmentation.

“Our fundamental vision is to change the way that knowledge workers acquire the information they need to do their jobs from one where they have to spend a ton of time actually seeking it out to one where the Seva platform can prescribe the right information at the right time when and where the knowledge worker actually needs it, regardless of where it lives.”

Seva, which is currently in Beta, certainly isn’t the first company to try and solve this issue. Jain believes that with a modern application of AI and machine learning and single sign-on, Seva can provide a much more user-centric approach than past solutions simply because the technology wasn’t there yet.

The way they do this is by looking across the different information types. Today they support a range of products including Gmail, Google Calendar, Google Drive,, Box, Dropbox, Slack and JIRA, Confluence. Jain says they will be adding additional services over time.

Screenshot: Seva

Customers can link Seva to these products by simply selecting one and entering the user credentials. Seva inherits all of the security and permissioning applied to each of the services, so when it begins pulling information from different sources, it doesn’t violate any internal permissioning in the process.

Jain says once connected to these services, Seva can then start making logical connections between information wherever it lives. A salesperson might have an appointment with a customer in his or her calendar, information about the customer in a CRM and a training video related to the customer visit. It can deliver all of this information as a package, which users can share with one another within the platform, giving it a collaborative element.

Seva currently has 6 employees, but with the new funding is looking to hire a couple of more engineers to add to the team. Jain hopes the money will be a bridge to a Series A round at the end of next year by which time the product will be generally available.


By Ron Miller

Truphone, an eSIM mobile carrier that works with Apple, raises another $71M, now valued at $507M

Truphone — a UK startup that provides global mobile voice and data services by way of an eSIM model for phones, tablets and IoT devices — said that it has raised another £18 million ($23.7 million) in funding; additionally securing £36 million ($47 million) more “on a conditional basis” to expand its business after signing “a number of high-value deals.”

It doesn’t specify which deals these are, but Truphone was an early partner of Apple’s to provide eSIM-based connectivity to the iPad; and it will also be offering a service for new iPhone XS and XR models, taking advantage of the dual SIM capability. Truphone says that strategic partners of the company include Apple (“which chose Truphone as the only carrier to offer global data, voice and text plans on the iPad and iPhone digital eSIM”); Synopsys, which has integrated Truphone’s eSIM technology into its chipset designs; and Workz Group, a SIM manufacturer, which has a license from Truphone for its GSMA-accredited remote SIM provisioning platform and SIM operating system.

The company said that this funding, which was made by way of a rights issue, values Truphone at £386 million ($507 million at today’s rates) post-money. Truphone told TechCrunch that the funding came from Vollin Holdings and Minden Worldwide — two investment firms with ties to Roman Abramovich, the Russian oligarch who also owns the Chelsea football club, among other things — along with unspecified minority shareholders. Collectively, Abramovich-connected entities control more than 80 percent of the company.

We have asked the company for more detail on what the conditions are for the additional £36 million in funding to be released and all it is willing to say is that “it’s KPI-driven and related to the speed of growth in the business.”

For some context, Truphone most recently raised money almost exactly a year ago, when it picked up £255 million also by way of a rights issue, and also from the same two big investors. The large amount that time was partly being raised to retire debt. That deal was done at a valuation of £370 million ($491 million at the time of the deal). Going just on sterling values, this is a slight down-round.

Truphone, however, says that business is strong right now:

“The appetite for our technology has been enormous and we are thrilled that our investors have given us the opportunity to accelerate and scale these groundbreaking products to market,” said Ralph Steffens, CEO, Truphone, in a statement. “We recognised early on that the more integrated the supply chain, the smoother the customer experience. That recognition paid off—not just for our customers, but for our business. Because we have this capability, we can move at a speed and proficiency that has never before seen in our industry. This investment is particularly important because it is testament not just to our investors’ confidence in our ambitions, but pride in our accomplishments and enthusiasm to see more of what we can do.”

Truphone is one of a handful of providers that is working with Apple to provide plans for the digital eSIM by way of the MyTruphone app. Essentially this will give users an option for international data plans while travelling — Truphone’s network covers 80 countries — without having to swap out the SIMs for their home networks.

The eSIM technology is bigger than the iPhone itself, of course: some believe it could be the future of how we connect on mobile networks. On phones and tablets, it does away with users ordering, and inserting or swapping small, fiddly chips into their devices (that ironically is also one reason that carriers have been resistant to eSIMs traditionally: it makes it much easier for their customers to churn away). And in IoT networks where you might have thousands of connected, unmanned devices, this becomes one way of scaling those networks.

“eSIM technology is the next big thing in telecommunications and the impact will be felt by everyone involved, from consumers to chipset manufacturers and all those in-between,” said Steve Alder, chief business development officer at Truphone. “We’re one of only a handful of network operators that work with the iPhone digital eSIM. Choosing Truphone means that your new iPhone works across the world—just as it was intended.” Of note, Alder was the person who brokered the first iPhone carrier deal in the UK, when he was with O2.

Truphone has not released numbers detailing how many devices are using its eSIM services at the moment — either among enterprises or consumers — but it has said that customers include more than 3,500 multinational enterprises in 196 countries. We’ll update this post as we learn more.


By Ingrid Lunden

Snowflake scoops up another blizzard of cash with $450 million round

When Snowflake, the cloud data warehouse, landed a $263 million investment earlier this year, CEO Bob Muglia speculated that it would be the last money his company would need before an eventual IPO. But just 9 months after that statement, the company announced a second even larger round. This time it’s getting $450 million, as an unexpected level of growth led them to seek additional cash.

Sequoia Capital led the round, joined by new investor Meritech Capital and existing investors Altimeter Capital, Capital One Growth Ventures, Madrona Venture Group, Redpoint Ventures, Sutter Hill Ventures and Wing Ventures. Today’s round brings the total raised to over $928 million with $713 million coming just this year. That’s a lot of dough.

Oh and the valuation has skyrocketed too from $1.5 billion in January to $3.5 billion with today’s investment. “We are increasing the valuation from the prior round substantially, and it’s driven by the growth numbers of almost quadrupling the revenue, and tripling the customer base,” company CFO Thomas Tuchscherer told TechCrunch.

At the time of the $263 million round, Muglia was convinced the company had enough funds and that the next fundraise would be an IPO. “We have put ourselves on the path to IPO. That’s our mid- to long-term plan. This funding allows us to go directly to IPO and gives us sufficient capital, that if we choose, IPO would be our next funding step,” he said in January.

Tuchscherer said in fact that was the plan at the time of the first batch of funding. He joined the company, partly because of his experience bringing Talend public in 2016, but he said the growth has been so phenomenal, that they felt it was necessary to change course.

“When we raised $263 million earlier in the year, we raised based on a plan that was ambitious in terms of growth and investment. We are exceeding and beating that, and it prompted us to explore how do we accelerate investment to continue driving the company’s growth,” he said.

Running on both Amazon Web Services and Microsoft Azure, which they added as a supported platform earlier this year, certainly contributed to the increased sales, and forced them to rethink the amount of money it would take to fuel their growth spurt.

“I think it’s very important as a distinction that we view the funding as being customer driven in the sense that in order to meet the demand that we’re seeing in the market for Snowflake, we have to invest in our infrastructure, as well as in our R&D capacity. So  the funding that we’re raising now is meant to finance those two core investments,” he stressed

The number of employees is skyrocketing as the company adds customers. Just eight months ago the company had around 350 employees. Today it has close to 650. Tuchscherer expects that to grow to between 900 and 1000 by the end of January, not that far off.

As for that IPO, surely that is still a goal, but the growth simply got in the way. “We are building the company to be autonomous and to be a large independent company. It’s definitely on the horizon,” he said.

While Tuchscherer wouldn’t definitively say that the company is looking to support at least one more cloud platform in addition to Amazon and Microsoft, he strongly hinted that such a prospect could happen.

The company also plans to plunge a lot of money into the sales team, building out new sales offices in the US and doubling their presence around the world, while also enhancing the engineering and R&D teams to expand their product offerings.

Just this year alone the company has added Netflix, Office Depot, DoorDash, Netgear, Ebates and Yamaha as customers. Other customers include Capital One, Lions Gate and Hubspot.


By Ron Miller

Egnyte hauls in $75M investment led by Goldman Sachs

Egnyte launched in 2007 just two years after Box, but unlike its enterprise counterpart, which went all-cloud and raised hundreds of millions of dollars, Egnyte saw a different path with a slow and steady growth strategy and a hybrid niche, recognizing that companies were going to keep some content in the cloud and some on prem. Up until today it had raised a rather modest $62.5 million, and hadn’t taken a dime since 2013, but that all changed when the company announced a whopping $75 million investment.

The entire round came from a single investor, Goldman Sachs’ Private Capital Investing arm, a part of Goldman’s Special Situations group. Holger Staude, vice president of Goldman Sachs Private Capital Investing will join Egnyte’s board under the terms of the deal. He says Goldman liked what it saw, a steady company poised for bigger growth with the right influx of capital. In fact, the company has had more than eight straight quarters of growth and have been cash flow positive since Q4 in 2016.

“We were impressed by the strong management team and the company’s fiscal discipline, having grown their top line rapidly without requiring significant outside capital for the past several years. They have created a strong business model that we believe can be replicated with success at a much larger scale,” Staude explained.

Company CEO Vineet Jain helped start the company as a way to store and share files in a business context, but over the years, he has built that into a platform that includes security and governance components. Jain also saw a market poised for growth with companies moving increasing amounts of data to the cloud. He felt the time was right to take on more significant outside investment. He said his first step was to build a list of investors, but Goldman shined through, he said.

“Goldman had reached out to us before we even started the fundraising process. There was inbound interest. They were more aggressive compared to others. Given there was prior conversations, the path to closing was shorter,” he said.

He wouldn’t discuss a specific valuation, but did say they have grown 6x since the 2013 round and he got what he described as “a decent valuation.” As for an IPO, he predicted this would be the final round before the company eventually goes public. “This is our last fund raise. At this level of funding, we have more than enough funding to support a growth trajectory to IPO,” he said.

Philosophically, Jain has always believed that it wasn’t necessary to hit the gas until he felt the market was really there. “I started off from a point of view to say, keep building a phenomenal product. Keep focusing on a post sales experience, which is phenomenal to the end user. Everything else will happen. So this is where we are,” he said.

Jain indicated the round isn’t about taking on money for money’s sake. He believes that this is going to fuel a huge growth stage for the company. He doesn’t plan to focus these new resources strictly on the sales and marketing department, as you might expect. He wants to scale every department in the company including engineering, posts-sales and customer success.

Today the company has 450 employees and more than 14,000 customers across a range of sizes and sectors including Nasdaq, Thoma Bravo, AppDynamics and Red Bull. The deal closed at the end of last month.


By Ron Miller

Foursquare picks up $33 million Series F investment

Foursquare has today announced the partial close of a $33 million Series F financing, with $25 million already closed out and another $8 million inbound, according to the blog post.

The round was co-led by Simon Ventures and Naver Corp, with participation from Union Square Ventures, an existing investor.

Over the past four years, Foursquare has pivoted from a consumer-facing social application to an enterprise platform, giving brands, retailers and ad platforms a way to get accurate, location-based data about their customers and their conversion rates.

Foursquare CEO Jeff Glueck told TechCrunch that more than 90 percent of Foursquare’s revenue comes from the enterprise side of the business. Two of the company’s most popular products are Attribution and the Pilgrim SDK.

With Attribution, Foursquare allows retailers and publishers to effectively track the impact their media has on conversion at offline locations. Using a panel of 25 million, non-incentivized users, these brands and retailers can track their own impact, as well as make more informed campaign decisions using insights around foot traffic and visit history of certain demographics.

The Pilgrim SDK, on the other hand, allows brands and partners to deliver highly relevant notifications and other experiences to their own users by leveraging Foursquare’s troves of location data.

Foursquare customers include Tinder, AccuWeather, Spotify, Hilton and iHeartMedia, and that doesn’t include the long list of brands — Uber, Apple, Microsoft, Samsung and Twitter — whose platforms are powered by Foursquare location.

According to Glueck, one of Foursquare’s greatest advantages is that they can offer the same high-level capabilities as their competitors, such as Facebook and Google, while focusing solely on the value they’re delivering to partners.

“The success of Google or Facebook or Amazon makes them great companies but unreliable partners,” said Glueck. “The truth about these walled gardens is that they can change their terms and conditions on a whim. They’re not partner-oriented. They’re seeking domination. It’s important for an independent developer community to be able to partner with a company that has the same capabilities.”

Foursquare currently includes more than 100 million places in more than 150 countries on their platform, which powers apps that collectively serve more than 1 billion consumers.

This latest round, which increased the company’s valuation, brings Foursquare’s total funding to $240 million.


By Jordan Crook

Instana raises $30M for its application performance monitoring service

Instana, an application performance monitoring (APM) service with a focus on modern containerized services, today announced that it has raised a $30 million Series C funding round. The round was led by Meritech Capital, with participation from existing investor Accel. This brings Instana’s total funding to $57 million.

The company, which counts the likes of Audi, Edmunds.com, Yahoo Japan and Franklin American Mortgage as its customers, considers itself an APM 3.0 player. It argues that its solution is far lighter than those of older players like New Relic and AppDynamics (which sold to Cisco hours before it was supposed to go public). Those solutions, the company says, weren’t built for modern software organizations (though I’m sure they would dispute that).

What really makes Instana stand out is its ability to automatically discover and monitor the ever-changing infrastructure that makes up a modern application, especially when it comes to running containerized microservices. The service automatically catalogs all of the endpoints that make up a service’s infrastructure, and then monitors them. It’s also worth noting that the company says that it can offer far more granular metrics that its competitors.

Instana says that its annual sales grew 600 percent over the course of the last year, something that surely attracted this new investment.

“Monitoring containerized microservice applications has become a critical requirement for today’s digital enterprises,” said Meritech Capital’s Alex Kurland. “Instana is packed with industry veterans who understand the APM industry, as well as the paradigm shifts now occurring in agile software development. Meritech is excited to partner with Instana as they continue to disrupt one of the largest and most important markets with their automated APM experience.”

The company plans to use the new funding to fulfill the demand for its service and expand its product line.


By Frederic Lardinois

GitLab raises $100M

GitLab, the developer service that aims to offer a full lifecycle DevOps platform, today announced that it has raised a $100 million Series D funding round at a valuation of $1.1 billion. The round was led by Iconiq.

As GitLab CEO Sid Sijbrandij told me, this round, which brings the company’s total funding to $145.5 million, will help it enable its goal of reaching an IPO by November 2020.

According to Sijbrandij, GitLab’s original plan was to raise a new funding round at a valuation over $1 billion early next year. But since Iconiq came along with an offer that pretty much matched what the company set out to achieve in a few months anyway, the team decided to go ahead and raise the round now. Unsurprisingly, Microsoft’s acquisition of GitHub earlier this year helped to accelerate those plans, too.

“We weren’t planning on fundraising actually. I did block off some time in my calendar next year, starting from February 25th to do the next fundraise,” Sijbrandij said. “Our plan is to IPO in November of 2020 and we anticipated one more fundraise. I think in the current climate, where the macroeconomics are really good and GitHub got acquired, people are seeing that there’s one independent company, one startup left basically in this space. And we saw an opportunity to become best in class in a lot of categories.”

As Sijbrandij stressed, while most people still look at GitLab as a GitHub and Bitbucket competitor (and given the similarity in their names, who wouldn’t?), GitLab’s wants to be far more than that. It now offers products in nine categories and also sees itself as competing with the likes of VersionOne, Jira, Jenkins, Artifactory, Electric Cloud, Puppet, New Relic, and BlackDuck.

“The biggest misunderstanding we’re seeing is that GitLab is an alternative to GitHub and we’ve grown beyond that,” he said. “We are now in nine categories all the way from planning to monitoring.”

Sijbrandij notes that there’s a billion-dollar player in every space that GitLab competes it. “But we want to be better,” he said. “And that’s only possible because we are open core, so people co-create these products with us. That being said, there’s still a lot of work on our side, helping to get those contributions over the finish line, making sure performance and quality stay up, establish a consistent user interface. These are things that typically don’t come from the wider community and with this fundraise of $100 million, we will be able to make sure we can sustain that effort in all the different product categories.”

Given this focus, GitLab will invest most of the funding in its engineering efforts to build out its existing products but also to launch new ones. The company plans to launch new features like tracing and log aggregation, for example.

With this very public commitment to an IPO, GitLab is also signaling that it plans to stay independent. That’s very much Sijbrandij’s plan, at least, though he admitted that “there’s always a price” if somebody came along and wanted to acquire the company. He did note that he likes the transparency that comes with being a public company.

“We always managed to be more bullish about the company than the rest of the world,” he said. “But the rest of the world is starting to catch up. This fundraise is a statement that we now have the money to become a public company where we’re not we’re not interested in being acquired. That is what we’re setting out to do.”


By Frederic Lardinois

Fresh out of Y Combinator, Leena AI scores $2M seed round

Leena AI, a recent Y Combinator graduate focusing on HR chatbots to help employees answer questions like how much vacation time they have left, announced a $2 million seed round today from a variety of investors.

Company co-founder and CEO Adit Jain says the seed money is about scaling the company and gaining customers. They hope to have 50 enterprise customers within the next 12-18 months. They currently have 16.

We wrote about the company in June when it was part of the Y Combinator Summer 2018 class. At the time Jain explained that they began in 2015 in India as a company called Chatteron. The original idea was to help others build chatbots, but like many startups, they realized there was a need not being addressed, in this case around HR, and they started Leena AI last year to focus specifically on that.

As they delved deeper into the HR problem, they found most employees had trouble getting answers to basic questions like how much vacation time they had or how to get a new baby on their health insurance. This forced a call to a help desk when the information was available online, but not always easy to find.

Jain pointed out that most HR policies are defined in policy documents, but employees don’t always know where they are. They felt a chatbot would be a good way to solve this problem and save a lot of time searching or calling for answers that should be easily found. What’s more, they learned that the vast majority of questions are fairly common and therefore easier for a system to learn.

Employees can access the Leena chatbot in Slack, Workplace by Facebook, Outlook, Skype for Business, Microsoft Teams and Cisco Spark. They also offer Web and mobile access to their service independent of these other tools.

Photo: Leena AI

What’s more, since most companies use a common set of backend HR systems like those from Oracle, SAP and NetSuite (also owned by Oracle), they have been able to build a set of standard integrators that are available out of the box with their solution.

The customer provides Leena with a handbook or a set of policy documents and they put their machine learning to work on that. Jain says, armed with this information, they can convert these documents into a structured set of questions and answers and feed that to the chatbot. They apply Natural Language Processing (NLP) to understand the question being asked and provide the correct answer.

They see room to move beyond HR and expand into other departments such as sales or customer service that could also take advantage of bots to answer a set of common questions. For now, as a recent YC graduate, they have their first bit of significant funding and they will concentrate on building HR chatbots and see where that takes them.


By Ron Miller

UIpath lands $225M Series C on $3 billion valuation as robotics process automation soars

UIPath is bringing automation to repetitive processes inside large organizations and it seems to have landed on a huge pain point. Today it announced a massive $225 million Series C on a $3 billion valuation.

The round was led by CapitalG and Sequoia Capital. Accel, which invested in the companies A and B rounds also participated. Today’s investment brings the total raised to $408 million, according to Crunchbase, and comes just months after a $153 million Series B we reported on last March. At that time, it had a valuation of over $1 billion, meaning the valuation has tripled in less than six months.

There’s a reason this company you might have never heard of is garnering this level of investment so quickly. For starters, it’s growing in leaps in bounds. Consider that it went from $1 million to $100 million in annual recurring revenue in under 21 months, according to the company. It currently has 1800 enterprise customers and claims to be adding 6 new ones a day, an astonishing rate of customer acquisition.

The company is part of the growing field of robotics process automation or RPA . While the robotics part of the name could be considered a bit of a misnomer, the software helps automate a series of mundane tasks that were typically handled by humans. It allows companies to bring a level of automation to legacy processes like accounts payable, employee onboarding, procurement and reconciliation without actually having to replace legacy systems.

Phil Fersht, CEO and chief analyst at HFS, a firm that watches the RPA market, says RPA isn’t actually that intelligent. “It’s about taking manual work, work-arounds and integrated processes built on legacy technology and finding way to stitch them together,” he told TechCrunch in an interview earlier this year.

It isn’t quite as simple as the old macro recorders that used to record a series of tasks and execute them with a keystroke, but it is somewhat analogous to that approach. Today, it’s more akin to a bot that may help you complete a task in Slack. RPA is a bit more sophisticated moving through a workflow in an automated fashion.

Ian Barkin from Symphony Ventures, a firm that used to do outsourcing, has embraced RPA. He says while most organizations have a hard time getting a handle on AI, RPA allows them to institute fundamental change around desktop routines without having to understand AI.

If you’re worrying about this technology replacing humans, it is somewhat valid, but Barkin says the technology is replacing jobs that most humans don’t enjoy doing. “The work people enjoy doing is exceptions and judgment based, which isn’t the sweet spot of RPA. It frees them from mundaneness of routine,” he said in an interview last year.

Whatever it is, it’s resonating inside large organizations and UIpath, is benefiting from the growing need by offering its own flavor of RPA. Today its customers include the likes of Autodesk, BMW Group and Huawei.

As it has grown over the last year, the number of employees has increased 3x  and the company expects to reach 1700 employees by the end of the year.


By Ron Miller

Sisense hauls in $80M investment as data analytics business matures

Sisense, a company that helps customers understand and visualize their data across multiple sources, announced an $80 million Series E investment today led by Insight Venture Partners. They also announced that Zack Urlocker, former COO at Duo Security and Zendesk, has joined the organization’s board of directors.

The company has attracted a prestigious list of past investors, who also participated in the round, including Battery Ventures, Bessemer Venture Partners, DFJ Venture Capital, Genesis Partners and Opus Capital. Today’s investment brings the total raised to close to $200 million.

CEO Amir Orad says investors like their mission of simplifying complex data with analytics and business intelligence and delivering it in whatever way makes sense. That could be on screens throughout the company, desktop or smartphone, or via Amazon Alexa. “We found a way to make accessing data extremely simple, mashing it together in a logical way and embedding it in every logical place,” he explained.

It appears to be resonating. The company has over 1000 customers including Expedia, Oppenheimer and Phillips to name but a few. Orad says they are actually the analytics engine behind Nasdaq Corporate Solutions, which is the the main investor relations system used by CFOs.

He was not in the mood to discuss the company’s valuation, an exercise he called “an ego boost he doesn’t relate to.” He says that he would prefer to be measured by how efficiently he uses the money investors give him or by customer satisfaction scores. Nor would he deal with IPO speculation. All he would say on that front was, “When you focus on the value you bring, positive things happen.”

In spite of that, he was clearly excited about having Urlocker join the board. He says the two spent six months getting to know each other and he sees a guy who has brought several companies to successful exit joining his team, and perhaps someone who can help him bring his company across the finish line, however that ultimately happens. Just last month, Cisco bought Urlocker’s former company, Duo Security for $2.35 billion.

For now Sisense, which launched in 2010, has another $80 million in the bank. They plan to add to the nearly 500 employees already in place in offices in New York, Tel Aviv, Kiev, Tokyo and Arizona. In particular, they plan to grow their international presence more aggressively, especially adding employees to help with customer success and field engineering. Orad also said that he was also open to acquiring companies should the right opportunity come along, saying “Because of talent, technology and presence, it’s something you have to be on lookout for.”

When a company reaches Series E and a couple of hundred million raised, it’s often a point where an exit could be coming sooner than later. By adding an experienced executive like Urlocker, it just emphasizes that possibility, but for now the company appears to be growing and thriving, and taking the view that whatever will be, will be.


By Ron Miller

PagerDuty raises $90M to wake up more engineers in the middle of the night

PagerDuty, the popular service that helps businesses monitor their tech stacks, manage incidents and alert engineers when things go sideways, today announced that it has raised a $90 million Series D round at a valuation of $1.3 billion. With this, PagerDuty, which was founded in 2009, has now raised well over $170 million.

The round was led by T. Rowe Price Associates and Wellington Management . Accel, Andreessen Horowitz and Bessemer Venture Partners. Given the leads in this round, chances are that PagerDuty is gearing up for an IPO.

“This capital infusion allows us to continue our investments in innovation that leverages artificial intelligence and machine learning, enabling us to help our customers transform their companies and delight their customers,” said Jennifer Tejada, CEO at PagerDuty in today’s announcement. “From a business standpoint, we can strengthen our investment in and development of our people, our most valuable asset, as we scale our operations globally. We’re well positioned to make the lives of digital workers better by elevating work to the outcomes that matter.”

Currently PagerDuty users include the likes of GE, Capital One, IBM, Spotify and virtually every other software company you’ve ever heard of. In total, over 10,500 enterprises now use the service. While it’s best known for its alerting capabilities, PagerDuty has expanded well beyond that over the years, though it’s still a core part of its service. Earlier this year, for example, the company announced its new AIOps services that aim to help businesses reduce the amount of noisy and unnecessary alerts. I’m sure there’s a lot of engineers who are quite happy about that (and now sleep better).


By Frederic Lardinois

Storage provider Cloudian raises $94M

Cloudian, a company that specializes in helping businesses store petabytes of data, today announced that it has raised a $94 million Series E funding round. Investors in this round, which is one of the largest we have seen for a storage vendor, include Digital Alpha, Fidelity Eight Roads, Goldman Sachs, INCJ, JPIC (Japan Post Investment Corporation), NTT DOCOMO Ventures and WS Investments. This round includes a $25 million investment from Digital Alpha, which was first announced earlier this year.

With this, the seven-year-old company has now raised a total of $174 million.

As the company told me, it now has about 160 employees and 240 enterprise customers. Cloudian has found its sweet spot in managing the large video archives of entertainment companies, but its customers also include healthcare companies, automobile manufacturers and Formula One teams.

What’s important to stress here is that Cloudian’s focus is on on-premise storage, not cloud storage, though it does offer support for multi-cloud data management, as well. “Data tends to be most effectively used close to where it is created and close to where it’s being used,” Cloudian VP of worldwide sales Jon Ash told me. “That’s because of latency, because of network traffic. You can almost always get better performance, better control over your data if it is being stored close to where it’s being used.” He also noted that it’s often costly and complex to move that data elsewhere, especially when you’re talking about the large amounts of information that Cloudian’s customers need to manage.

Unsurprisingly, companies that have this much data now want to use it for machine learning, too, so Cloudian is starting to get into this space, as well. As Cloudian CEO and co-founder Michael Tso also told me, companies are now aware that the data they pull in, no matter whether that’s from IoT sensors, cameras or medical imaging devices, will only become more valuable over time as they try to train their models. If they decide to throw the data away, they run the risk of having nothing with which to train their models.

Cloudian plans to use the new funding to expand its global sales and marketing efforts and increase its engineering team. “We have to invest in engineering and our core technology, as well,” Tso noted. “We have to innovate in new areas like AI.”

As Ash also stressed, Cloudian’s business is really data management — not just storage. “Data is coming from everywhere and it’s going everywhere,” he said. “The old-school storage platforms that were siloed just don’t work anywhere.”


By Frederic Lardinois

Very Good Security makes data ‘unhackable’ with $8.5M from Andreessen

“You can’t hack what isn’t there,” Very Good Security co-founder Mahmoud Abdelkader tells me. His startup assumes the liability of storing sensitive data for other companies, substituting dummy credit card or Social Security numbers for the real ones. Then when the data needs to be moved or operated on, VGS injects the original info without clients having to change their code.

It’s essentially a data bank that allows businesses to stop storing confidential info under their unsecured mattress. Or you could think of it as Amazon Web Services for data instead of servers. Given all the high-profile breaches of late, it’s clear that many companies can’t be trusted to house sensitive data. Andreessen Horowitz is betting that they’d rather leave it to an expert.

That’s why the famous venture firm is leading an $8.5 million Series A for VGS, and its partner Alex Rampell is joining the board. The round also includes NYCA, Vertex Ventures, Slow Ventures and PayPal mafioso Max Levchin. The cash builds on VGS’ $1.4 million seed round, and will pay for its first big marketing initiative and more salespeople.

“Hey! Stop doing this yourself!,” Abdelkader asserts. “Put it on VGS and we’ll let you operate on your data as if you possess it with none of the liability.” While no data is ever 100 percent unhackable, putting it in VGS’ meticulously secured vaults means clients don’t have to become security geniuses themselves and instead can focus on what’s unique to their business.

“Privacy is a part of the UN Declaration of Human Rights. We should be able to build innovative applications without sacrificing our privacy and security,” says Abdelkader. He got his start in the industry by reverse-engineering games like StarCraft to build cheats and trainer software. But after studying discrete mathematics, cryptology and number theory, he craved a headier challenge.

Abdelkader co-founded Y Combinator-backed payment system Balanced in 2010, which also raised cash from Andreessen. But out-muscled by Stripe, Balanced shut down in 2015. While transitioning customers over to fellow YC alumni Stripe, Balanced received interest from other companies wanting it to store their data so they could be PCI-compliant.

Very Good Security co-founder and CEO Mahmoud Abdelkader

Now Abdelkader and his VP from Balanced, Marshall Jones, have returned with VGS to sell that as a service. It’s targeting startups that handle data like payment card information, Social Security numbers and medical info, though eventually it could invade the larger enterprise market. It can quickly help these clients achieve compliance certifications for PCI, SOC2, EI3PA, HIPAA and other standards.

VGS’ innovation comes in replacing this data with “format preserving aliases” that are privacy safe. “Your app code doesn’t know the difference between this and actually sensitive data,” Abdelkader explains. In 30 minutes of integration, apps can be reworked to route traffic through VGS without ever talking to a salesperson. VGS locks up the real strings and sends the aliases to you instead, then intercepts those aliases and swaps them with the originals when necessary.

“We don’t actually see your data that you vault on VGS,” Abdelkader tells me. “It’s basically modeled after prison. The valuables are stored in isolation.” That means a business’ differentiator is their business logic, not the way they store data.

For example, fintech startup LendUp works with VGS to issue virtual credit card numbers that are replaced with fake numbers in LendUp’s databases. That way if it’s hacked, users’ don’t get their cards stolen. But when those card numbers are sent to a processor to actually make a payment, the real card numbers are subbed in last-minute.

VGS charges per data record and operation, with the first 500 records and 100,000 sensitive API calls free; $20 a month gets clients double that, and then they pay 4 cent per record and 2 cents per operation. VGS provides access to insurance too, working with a variety of underwriters. It starts with $1 million policies that can be much larger for Fortune 500s and other big companies, which might want $20 million per incident.

Obviously, VGS has to be obsessive about its own security. A breach of its vaults could kill its brand. “I don’t sleep. I worry I’ll miss something. Are we a giant honey pot?,” Abdelkader wonders. “We’ve invested a significant amount of our money into 24/7 monitoring for intrusions.”

Beyond the threat of hackers, VGS also has to battle with others picking away at part of its stack or trying to compete with the whole, like TokenEx, HP’s Voltage, Thales’ Vormetric, Oracle and more. But it’s do-it-yourself security that’s the status quo and what VGS is really trying to disrupt.

But VGS has a big accruing advantage. Each time it works with a clients’ partners like Experian or TransUnion for a company working with credit checks, it already has a relationship with them the next time another clients has to connect with these partners. Abdelkader hopes that, “Effectively, we become a standard of data security and privacy. All the institutions will just say ‘why don’t you use VGS?’”

That standard only works if it’s constantly evolving to win the cat-and-mouse game versus attackers. While a company is worrying about the particular value it adds to the world, these intelligent human adversaries can find a weak link in their security — costing them a fortune and ruining their relationships. “I’m selling trust,” Abdelkader concludes. That peace of mind is often worth the price.


By Josh Constine

Armory lands $10M Series A to bring continuous delivery to enterprise masses

Armory, a startup that has built a CI/CD platform on top the open source Spinnaker project, announced a $10 million Series A today led by Crosslink Capital. Other investors included Bain Capital Ventures, Javelin Venture Partners, YCombinator and Robin Vasan.

Software development certainly has changed over the last several years, going from long cycles between updates to a continuous delivery model. The concept is actually called CI/CD or continuous integration/continuous delivery. Armory’s product is designed to eliminate some of the complexity associated with deploying this kind of solution.

When they started the company, the founders made a decision to hitch their wagon to Spinnaker, a project that had the backing of industry heavyweights like Google and Netflix. “Spinnaker would become an emerging standard for enabling truly multi-cloud deployments at scale. Instead of re-creating the wheel and building another in-house continuous delivery platform, we made a big bet on having Spinnaker at the core of Armory’s Platform,” company CEO and co-founder Daniel R. Odio wrote in a blog post announcing the funding.

The bet apparently paid off and the company’s version of Spinnaker is widely deployed enterprise solution (at least according to them). The startup’s ultimate goal is to help Fortune 2000 companies deploy software much faster — and accessing and understanding CI/CD is a big part of that.

As every company out there becomes a software company, they find themselves outside their comfort zones. While Google and Netflix and other hyper-scale organizations have learned to deploy software at startling speed using state of the art methodologies, it’s not so easy for most companies with much smaller engineering teams to pull off.

That’s where a company like Armory could come into play. It takes this open source project and it packages it in such a way that it simplifies (to an extent) the complex world that these larger companies operate in on a regular basis, putting Spinnaker and CI/CD concepts in reach of organizations whose core competency might not involve sophisticated software deployment.

All of this relates to multi-cloud and cloud-native approaches to software development, which lets you manage your applications and infrastructure wherever they live across any cloud vendor or even on-prem in consistent way. Being able to manage continuous deployment is part of that.

Armory launched in 2016 and is based in the Bay area. It has raised a total of $14 million with a $4 million seed round coming last year. They were also a member of the Y Combinator Winter 2017 class and count Y Combinator as an investor in this round.


By Ron Miller

Slack must use cash hoard to find new ways to keep competition at bay

It was quite a week for Slack, wasn’t it? The enterprise communications platform confirmed this publication’s earlier report that it had scored another $427 million investment on an over-the-moon valuation of over $7 billion. Slack took a market that had once been in the doldrums and turned it into something significant by making itself more than a communications tool.

It changed the game by making itself a work hub. Through APIs and UI updates, it has made it simple for countless third parties (like Evernote) to integrate with Slack and provide the long-sought workplace hub for the enterprise. Instead of task switching, you can work mostly in one place and keep your focus on your work.

It’s quite a value proposition and it has enabled Slack to raise $1.2 billion (with a b) across 11 funding rounds, according to data on Crunchbase. They have grown to 8 million daily active users. They boast 70,000 teams paying to use it. Whatever they are doing, it’s working.

Competing with corporate behemoths

That said, Slack’s success has always been a bit surprising because it’s facing off against giants like Microsoft, Facebook, Google, Cisco, Salesforce and many others, all gunning for this upstart’s market. In fact, Microsoft is giving Teams away for free to Office 365 customers. You could say it’s hard to compete with free, yet Slack continues to hold its own (and also offers a free version, for the record).

Perhaps that’s because it doesn’t require customers to use any particular toolset. Microsoft Teams is great for Microsoft users. Google Hangouts is great for G Suite users. You’re already signed in and it’s all included in the package, and there is a huge convenience factor there, but Slack works on anything and with anything and companies have shown there is great value in that.

The question is can Slack continue to play David to these corporate behemoths or will patience, bushels of cash on hand and a long view allow these traditional tech companies to eventually catch up and pass the plucky newbie. Nobody can see into the future, but obviously investors recognize it takes a lot of capital to keep up with what the competition is bringing to the table.

Expanding their reach

They also clearly have some confidence in the company’s ability to keep growing and keep the titans at bay or they wouldn’t have thrown all of that moolah at them. Up until now, they seem to have always found a way, but they need to step up if they are going to keep it going.

Alan Lepofsky, an analyst with Constellation Research, who keeps a careful eye on the enterprise collaboration market, says in a recent video commentary that it’s great they got all this money, but now that someone has shown them all of this dough, they have to prove they know what to do with it.

“For Slack to continue to be successful, they need to expand beyond what they are currently doing and really, truly redefine the way people communicate, collaborate, coordinate around their work. They need to branch out to project management, task management, content creation — all sorts of things more than just collaboration.”

What comes next?

Lepofsky says this could happen via a build or buy scenario, or even partnering, but they need to use their money strategically to differentiate the product from the hefty competition and stay ahead in this market.

The other elephant in the room is the idea that one of the competing mega corporations could make a run at them and try to acquire them. It would take a boat load of money to make that happen, but if someone had the cojones to do it, they would be getting the state of the art, the market share, the engineering, the whole package.

For now, that’s pure speculation. For now, Slack is sitting comfortably on a huge cash pile, and perhaps they should go shopping and expand their product set with their newly found wealth, as Lepofsky suggests. If they can do that, maybe they can keep the technology wolves from the door and make their way down the path to their seemingly inevitable IPO.


By Ron Miller