Couchbase raises $105M Series G funding round

Couchbase. the Santa Clara-based company behind the eponymous NoSQL cloud database service, today announced that it has raised a $105 million all-equity Series G round “to expand product development and global go-to-market capabilities.”

The oversubscribed round was led by GPI Capital, with participation from existing investors Accel, Sorenson Capital, North Bridge Venture Partners, Glynn Capital, Adams Street Partners and Mayfield. With this, the company has now raised a total of $251 million, according to Crunchbase.

Back in 2016, Couchbase raised a $30 million down round, which at the time was meant to be the company’s last round before an IPO. That IPO hasn’t materialized, but the company continues to grow, with 30 percent of the Fortune 100 now using its database. Couchbase also today announced that, over the course of the last fiscal year, it saw 70 percent total contract value growth, more than 50 percent new business growth and over 35 percent growth in average subscription deal size. In total, Couchbase said today, it is now seeing almost $100 million in committed annual recurring revenue.

“To be competitive today, enterprises must transform digitally, and use technology to get closer to their customers and improve the productivity of their workforces,” said Couchbase President and CEO Matt Cain in today’s announcement. “To do so, they require a cloud-native database built specifically to support modern web, mobile and IoT applications.  Application developers and enterprise architects rely on Couchbase to enable agile application development on a platform that performs at scale, from the public cloud to the edge, and provides operational simplicity and reliability. More and more, the largest companies in the world truly run their businesses on Couchbase, architecting their most business-critical applications on our platform.”

The company is playing in a large but competitive market, with the likes of MongoDB, DataStax and all the major cloud vendors vying for similar customers in the NoSQL space. One feature that has always made Couchbase stand out is Couchbase Mobile, which extends the service to the cloud. Like some of its competitors, the company has also recently placed its bets on the Kubernetes container orchestration tools with, for example the launch of its Autonomous Operator for Kubernetes 2.0. More importantly, though, the company also introduced its fully-managed Couchbase Cloud Database-as-a-Service in February, which allows businesses to run the database within their own virtual private cloud on public clouds like AWS and Microsoft Azure.

“We are excited to partner with Couchbase and view Couchbase Server’s highly performant, distributed architecture as purpose-built to support mission-critical use cases at scale,” said Alex Migon, a partner at GPI Capital and a new member of the company’s board of directors. “Couchbase has developed a truly enterprise-grade product, with leading support for cutting-edge application development and deployment needs.  We are thrilled to contribute to the next stage of the company’s growth.”

The company tells me that it plans to use the new funding to continue its “accelerated trajectory with investment in each of their three core pillars: sustained differentiation, profitable growth, and world class teams.” Of course, Couchbase will also continue to build new features for its NoSQL server, mobile platform and Couchbase Cloud — and in addition, the company will continue to expand geographically to serve its global customer operations.


By Frederic Lardinois

Slack aims to be the most important software company in the world, says CEO

Slack this morning disclosed estimated preliminary financial results for the first quarter of 2019 ahead of a direct listing planned for June 20.

Citing an addition of paid customers, the workplace messaging service posted revenues of about $134 million, up 66 percent from $81 million in the first quarter of 2018. Losses from operations increased from $26 million in Q1 2018 to roughly $39 million this year.

In addition to filing updated paperwork, the Slack executive team gathered on Monday to make a final pitch to potential shareholders, emphasizing its goal of replacing email within enterprises across the world.

“People deserve to do the best work of their lives,” Slack co-founder and chief executive officer Stewart Butterfield said in a video released alongside a livestream of its investor day event. “This desire of feeling aligned with your team, of removing confusion, of getting clarity; the desire for support in doing the best work of your life, that’s universal, that’s deeply human. It appeals to people with all kinds of roles, in all kinds of industries, at all scales of organization and all cultures.”

“We believe that whoever is able to unlock that potential for people … is going to be the most important software company in the world. We aim to be that company,” he added.”

Slack, valued at more than $7 billion with its last round of venture capital funding, plans to list on the NYSE under the ticker symbol “SK.”

The business filed to go public in April as other well-known tech companies were finalizing their initial public offerings. Following Uber’s disastrous IPO last week, public and private market investors alike will be keeping a close-eye on Slack’s stock market performance, which may determine Wall Street’s future appetite for Silicon Valley’s unicorns.

Though some of the recent tech IPOs performed famously, like Zoom, Uber and Lyft’s performance has served as a cautionary tale for going out in poor market conditions with lofty valuations. Uber began trading last week at below its IPO price of $45 and is today down significantly at just $36 per share. Lyft, for its part, is selling for $47.5 apiece today after pricing at $72 per share in March.

Slack isn’t losing billions per year like Uber but it’s also not as close to profitability as expected. In the year ending January 31, 2019, Slack posted a net loss of $138.9 million and revenue of $400.6 million. That’s compared to a loss of $140.1 million on revenue of $220.5 million for the year ending January 31, 2018. In its S-1, the company attributed its losses to scaling the business and capitalizing on its market opportunity.

Workplace messaging startup Slack said Monday, February 4, 2019 it had filed a confidential registration for an initial public offering, becoming the latest of a group of richly valued tech enterprises to look to Wall Street. (Photo by Eric BARADAT / AFP) (Photo credit should read ERIC BARADAT/AFP/Getty Images)

Slack currently boasts more than 10 million daily active users across more than 600,000 organizations — 88,000 on the paid plan and 550,000 on the free plan.

Slack has been able to bypass the traditional roadshow process expected of an IPO-ready business, opting for a path to Wall Street popularized by Spotify in 2018. The company plans to complete a direct listing, which allows companies to forgo issuing new shares and instead sell existing shares held by insiders, employees and investors directly to the market, in mid-June. The date, however, is subject to change.

Slack has previously raised a total of $1.2 billion in funding from investors, including Accel, Andreessen Horowitz, Social Capital, SoftBank, Google Ventures and Kleiner Perkins.


By Kate Clark

On balance, the cloud has been a huge boon to startups

Today’s startups have a distinct advantage when it comes to launching a company because of the public cloud. You don’t have to build infrastructure or worry about what happens when you scale too quickly. The cloud vendors take care of all that for you.

But last month when Pinterest announced its IPO, the company’s cloud spend raised eyebrows. You see, the company is spending $750 million a year on cloud services, more specifically to AWS. When your business is primarily focused on photos and video, and needs to scale at a regular basis, that bill is going to be high.

That price tag prompted Erica Joy, a Microsoft engineer to publish this Tweet and start a little internal debate here at TechCrunch. Startups, after all, have a dog in this fight, and it’s worth exploring if the cloud is helping feed the startup ecosystem, or sending your bills soaring as they have with Pinterest.

For starters, it’s worth pointing out that Ms. Joy works for Microsoft, which just happens to be a primary competitor of Amazon’s in the cloud business. Regardless of her personal feelings on the matter, I’m sure Microsoft would be more than happy to take over that $750 million bill from Amazon. It’s a nice chunk of business, but all that aside, do startups benefit from having access to cloud vendors?


By Ron Miller

The Cloud Native Computing Foundation adds etcd to its open-source stable

The Cloud Native Computing Foundation (CNCF), the open-source home of projects like Kubernetes and Vitess, today announced that its technical committee has voted to bring a new project on board. That project is etcd, the distributed key-value store that was first developed by CoreOS (now owned by Red Hat, which in turn will soon be owned by IBM). Red Hat has now contributed this project to the CNCF.

Etcd, which is written in Go, is already a major component of many Kubernetes deployments, where it functions as a source of truth for coordinating clusters and managing the state of the system. Other open-source projects that use etcd include Cloud Foundry, and companies that use it in production include Alibaba, ING, Pinterest, Uber, The New York Times and Nordstrom.

“Kubernetes and many other projects like Cloud Foundry depend on etcd for reliable data storage. We’re excited to have etcd join CNCF as an incubation project and look forward to cultivating its community by improving its technical documentation, governance and more,” said Chris Aniszczyk, COO of CNCF, in today’s announcement. “Etcd is a fantastic addition to our community of projects.”

Today, etcd has well over 450 contributors and nine maintainers from eight different companies. The fact that it ended up at the CNCF is only logical, given that the foundation is also the host of Kubernetes. With this, the CNCF now plays host to 17 projects that fall under its “incubated technologies” umbrella. In addition to etcd, these include OpenTracing, Fluentd, Linkerd, gRPC, CoreDNS, containerd, rkt, CNI, Jaeger, Notary, TUF, Vitess, NATS Helm, Rook and Harbor. Kubernetes, Prometheus and Envoy have already graduated from this incubation stage.

That’s a lot of projects for one foundation to manage, but the CNCF community is also extraordinarily large. This week alone about 8,000 developers are converging on Seattle for KubeCon/CloudNativeCon, the organization’s biggest event yet, to talk all things containers. It surely helps that the CNCF has managed to bring competitors like AWS, Microsoft, Google, IBM and Oracle under a single roof to collaboratively work on building these new technologies. There is a risk of losing focus here, though, something that happened to the OpenStack project when it went through a similar growth and hype phase. It’ll be interesting to see how the CNCF will manage this as it brings on more projects (with Istio, the increasingly popular service mesh, being a likely candidate for coming over to the CNCF as well).


By Frederic Lardinois