Category Archives: Funding

EverString, Funding, News & Analysis, predictive marketing, Saas

EverString raises $65 million for predictive marketing push

Startup seed fundingPredictive marketing SaaS company EverString has raised $65 million in venture funding for market expansion. The Series B investment round was led by Lightspeed Venture Partners, which gathered extra financial support from Sequoia Capital and IDG Ventures and brought in new investors including Lakestar.

EverString uses data science, artificial intelligence and predictive analytics in a cloud based system that helps B2B companies identify their best customer prospects. The system intelligently scores new and existing sales prospects and widens the net to find completely new targets. In ‘demand generation’ circles this is called going outside the funnel. EverString’s customers are primarily enterprise and mid-market companies and include Comcast Business, IBM, Hortonworks, Apttus and Zenefits.

It has also unveiled its latest service, EverString Predictive Ad Targeting, which it claims gives ‘demand generators’ more control over the top of their funnel.

While the marketing technology sector has grown significantly in recent years, few companies offer more than just niche, point solutions, said venture capitalist and market watcher Peter Nieh, partner at Lightspeed Venture Partners. “EverString is unique as it offers a comprehensive platform that helps B2B companies find and drive the best customer prospects through the sales funnel,” said Nieh.

Most marketing officers struggle to prioritise their efforts efficiently, according to the Chief Marketing Officer Council which said 67 per cent of CMOs believe this ‘essential’ function is wasted because they can’t manage multiple systems. EverString impressed stakeholders because it bypasses the heavy integration cycles usually associated with combining several new systems and builds on the limitations of old-school demand generation methods.

Predictive marketing works by identifying the ideal audience then applying models of customers to map out the expected prospect-to-customer journey. EverString Audience Selection then allows the sellers to analyse and validate their entire addressable market of prospects, and then proactively target the ideal audience. These predictions are based on the wisdom compiled in a database of 20,000 external signals combined with data from internal CRM and marketing automation systems.

CRM, Europe, Funding, investment, News & Analysis, Salesforce, startups

Salesforce offers $100m VC opportunity to European cloud startups

Salesforce WearSalesforce Ventures has allocated $100 million to invest in European startups as the investment arm of the cloud giant aims to capitalise on a potential $33.3 billion market. Any European cloud start up that impresses the venture capitalists could typically expect backing of between $1 million and $5 million, according to the fund’s development head.

As the investment arm of cloud-based CRM giant Salesforce it has already invested £500 million in 150 cloud and enterprise startups since 2009. However the majority of these have been US based and only 17 European cloud start up firms have been funded. However, researcher IDC predicts that the European cloud sector will grow 12 as fast as any other sector of the IT industry. As Europe catches up with the US, by 2019 its cloud market could be worth a collective $33.3 billion, it said.

As the global shift to the cloud generates demand for exciting new social, mobile and data science technologies it is creating an opportunity that should not be missed, said Salesforce EVP of corporate development John Somorjai. The European investment business will link back to Salesforce Ventures’ operations in the US run by Somorjai. London based Alex Kayyal will head the Salesforce Ventures’ efforts in Europe.

“There is so much incredible innovation happening in Europe today and we want to empower the next generation of enterprise cloud startups in the region,” said Somorjai, “Our $100 million commitment strengthens our mission to help startups grow and give back to their communities.”

However, he admitted that the competition has already started with five investments already earmarked to take a chunk of the budget.

European cloud start ups that have previously won funding from Salesforce Ventures include CartoDB, CloudSense, Cloud9 IDE, NewVoiceMedia, Qubit, Universal Avenue and YOUR SL. It’s not just about the money, according to Ruben Daniels, co-founder of Cloud9 IDE. “It’s the network and introductions, mentorship and framework that help,” said Daniels.

Salesforce Ventures’ global expertise was as important as its funding, according to CartoDB founder Javier de la Torre. “It helps us more effectively bring our data visualization tools to individual and business users around the world,” said de la Torre.

Cloudflare, Funding, Google, Microsoft, News & Analysis, Qualcomm, startup

Cloud security start up Cloudflare gets $110 million in venture funding

Secure cloudGoogle, Microsoft and chip maker Qualcomm are among the investors to collectively stake $110 million in networking and cyber security start up CloudFlare, according to a report in Fortune.

Cloudflare offers services that speed up cloud systems and web sites while beefing up security. Its main market proposition is to speed up the functioning of any services used by enterprises at the edge of their networks. By doing so it provides a cheaper alternative to the traditional model of on-premise appliances.

Cloudflare claims enterprises can quickly set up cloud-based firewall, load balancing, WAN optimization, distributed denial of service (DDoS) mitigation, content delivery and domain name services services worldwide without needing any hardware. It claims that in one day it saved Chinese users more than 243 years of time that would have been collectively spent waiting for web content to load.

Last week Cloudflare finalized a joint venture with Chinese Internet giant Baidu that allows both US-based companies and Chinese-based companies to use CloudFlare’s website performance service while adhering to Chinese data laws.

Although CloudFlare maintains no physical operations in China, it has worked with Baidu to set up technology within Baidu’s facilities that mimic CloudFlare’s services elsewhere, Prince said.

The funding round was led by Fidelity Investments with Google Capital, Microsoft, Baidu and Qualcomm Ventures, the investment arm of Qualcomm all contributing funds. CloudFlare now has $182 million in total funding.

Matthew Prince, CEO of the start up, said Cloudflare didn’t need the funding as much as it needed the credibility that comes with top brand association. The confidence that comes with the backing of Google and Microsoft could convince nervous buyers that this is a solid investment when the company prepares itself for an initial public offering, it was reported. However, the IPO is unlikely to happen this year, said Prince, and he hinted that it would come no earlier than 2017.

Financing, Funding, investment, News & Analysis, Survey, VCs

Investor confidence is highest in cloud computing say venture capitalists

Money cloudCloud computing has been hailed as the strongest technology investment sector for the third time in a row in a survey that gauges confidence among capital, private and growth equity speculators.

The cloud sector came out strongest in the 2015 Global Venture Capital Confidence Survey compiled by Deloitte and the National Venture Capital Association (NVCA). The study quizzes 200 speculators on the general venture capital environment as well as other market factors such as conditions in industries and across regions.

While biopharmaceuticals and robotics reported the highest levels of confidence growth, and the Internet of Things (IoT) was recognised for the first time by the study, cloud computing was the top tech trend for the third year in a row. When the survey group was asked to gauge their levels of confidence in a technology, cloud was the most convincing quantity in which investors would put their faith, with a confidence rating of 4.18 out of 5. Mobile came in second place with a rating of 4.05, while new category the IoT came third with a score of 3.95. Software was a close fourth with a rating of 3.82 on the confidence range.

Investors are most confident in companies based in Silicon Valley and San Francisco with $15.2bn being invested in these regions. Next in the investment league came New York with $4.5bn and Boston, which received $3.2bn from speculators. Confidence in investing in UK-based companies varies, with four of the eight countries questioned saying they have increased confidence in the UK’s tech startup economy and four saying their confidence has fallen.

Interest in investing in Israel was rated highly (a 3.9 out of 5) while Canada (3.60) continued to rise from previous years’ survey results. Confidence in emerging markets has declined among global investors, with rating Brazil at 2.70, down 43 basis points from 2014.

In the cloud computing industry there is much for venture investors to feel excited about, according to Bobby Franklin, president and CEO of NVCA. “The fundraising environment continues to improve, the IPO market is gaining strength and there is no shortage of innovative, game-changing start up companies to take to the next level,” said Franklin.

cloud security, Funding, Identity management, News & Analysis, Okta

Okta raises $75m in funding as cloud identity management leader is valued as $1.2 bn

identity access managementCloud security vendor Okta has raised $75 million from existing shareholders, taking its market valuation at $1.2 billion.

A specialist in identity and mobility management, Okta raised the finance from lead investors Andreessen Horowitz, Greylock Partners and Sequoia Capital. New investment has been attracted from Khosla Ventures, Altimeter, Glynn Capital and others.

Since its founding in 2009, Okta has now raised a total of $230 million.

Okta has added to its management team with Michelle Wilson, former general counsel at Amazon, joining as the first independent director on its board. In addition, Okta has appointed Michael Guerchon, ex-Riversoft HR man, as its Chief People Officer and Jon Runyan as its General Counsel. Runyan, formerly a partner in Goodwin Proctor’s technology companies practice, will oversee the company’s legal affairs worldwide.

In September Okta announced a ‘substantial investment’ in private cloud infrastructure rented from Amazon Web Services in Germany. An additional disaster recovery facility has been established in Eire. The use of the AWS facilities was a move to manage all European data in a single facility within Europe.

“We’re at an important inflection point where IT leaders, product developers and industry analysts see the critical role identity plays in connecting people, apps, devices and organizations,” said Todd McKinnon, Okta CEO, “Okta pioneered cloud-based identity management, which set us up to become the foundation for secure connections.”

Okta stakeholder Ben Horowitz, co-founder of investment partner Andreessen Horowitz, described Okta as the ‘runaway market leader in identity management’.

“This new round of funding will expand their scope and bring that solution to the world,” said Horowitz.

Since its start-up in 2009, Okta has won 2,500 customers globally catering to demand for cloud security with its identity management service.

Meanwhile, Cybersecurity vendor Webroot announced new channel to market for its cloud based services, in a partnership with New Zealand-based distributor exceed. The agreement gives retailers, IT resellers and managed service providers access to Webroot’s cloud-based big data analytics, automated machine learning and intelligent endpoint security.

Distributors, resellers and service providers are revising their business model to focus on cloud services, giving security vendors the scope for rapid expansion, according to Justin Tye, Exeed’s managing director. “We selected Webroot for its flexible, fast, and effective solutions, as well as its business model that clearly supports a multifaceted sales strategy,” said Tye.

cloud security, Funding, Netskope, News & Analysis

Cloud broker Netskope raises $75 million for analytics based security enforcement services

Secure cloudCloud security firm Netskope has received $75 million to develop its policy enforcement systems for cloud applications.

Describing itself as a cloud access security broker, Netskope raised the investment in a Series D funding round led by Iconiq Capital. Existing investors Accel Partners, Lightspeed Venture Partners and the Social + Capital Partnership also participated.

Netskope monitors and enforces policy on data shared across cloud applications. It aims to give companies an instant view of the use of their data and creates plans of action to prevent betrayed confidences and information leakage. In May 2014 investors staked $35 million in a Series C round of funding. It total, the company has raised $130 million in investment.

Data protection for cloud based apps is an emerging niche in the security market which, according to analysis by Gartner, has a market value of $5 billion. The new genre of Cloud Access Security Brokers solves problems that cannot be addressed by traditional firewalls, according to Gartner.

Netskope’s founder claims that the company differentiates itself by being more precise, and going deeper into the data. This, says founder and CEO Sanjay Beri, helps customers gain better understanding of their data’s exposure.

While cloud apps give the workforce better tools and flexibility, the IT department has to manage the proliferation of data shared across the masses of unsanctioned cloud apps, said Beri. Since there are often ten times more cloud apps in use than IT departments are aware of, this is creating a massive security problem, which Netskope aims to solve, according to Beri.

“Only Netskope provides surgical visibility and control for all cloud apps, whether sanctioned by IT or not,” said Beri. Mobile apps in particular will create security problems for enterprises, as the bring your own device trend continues, according to Netskope, which offers a data loss prevention system that examines 400 different file types across over 3000 different data identifiers. Its own internal figures suggest that 90 per cent of the apps used by its enterprise customers are unsanctioned and not considered as enterprise ready. In addition, 13.6 per cent of those app users have had their account credentials compromised.

The new capital will be used to expand sales, marketing, customer success, engineering and research operations worldwide, adding to its current 250 person headcount. New data centres are planned for Asia-Pacific and Europe to meet growing demand.

Apttus, Funding, investment, News & Analysis, Salesforce

Cloud vendor Apttus raises $108m to fund new services and features

Cloud software vendor Apttus has raised a further $108 million to fund the growth of its quote and renewals management business.

The new investment comes only seven months after it secured $41m in February 2015, as investor confidence in its e-commerce, contract management and renewals management software has surged. Founded in 2006, it received its first series of investment funding in 2013, when it received $37 million.

The Series C funding round was led by KIA. Previous investment rounds have been led by Salesforce’s venture capital arm Salesforce Ventures, which also contributed to this round of investment. Investors in this latest round also included Iconiq Capital and K1 Capital.

The Apttus cloud systems integrate with Salesforce’s CRM platform and are used to develop sales and renewal quotes within Salesforce’s system.

The funds will be used to develop new systems and provide new services to Apttus customers and prospects. According to Apttus, the main targets will be in the manufacturing, life sciences, financial services and telecommunications industries.

Apttus aims to give clients a better system of demand management by giving its users more information about their clients. The intelligence it curates allows sales staff to identify and concentrate their efforts on the most likely sales prospects. This information is gathered by the system by assessing the online track record of the potential customer. By monitoring and managing every transaction, this system gives the seller an ‘unbroken funnel’ throughout the sales cycle. This channelling of the customer is known as the Quote-to-Cash process.

The Apttus system was built on the Salesforce1 platform and it claims to have been an active partner of Salesforce since its foundation in 2006, with participation in the Salesforce ecosystem.

Apttus has 70 customers in the Fortune 500 and is projected tohave 1,000 employees by the end of 2015, a 400% growth in headcount since 2013. It now has offices in London, Sydney and Chicago with a Japanese location planned.

Apttus’s cloud software has re-defined the Quote-to-Cash process and the flow of money, said Farouq Bastaki, Executive Director of Alternative Investments at KIA. “We believe they have developed the future of how organizations manage their entire revenue operation with a modern front office, in the cloud,” said Bastaki.

Funding, Issy Ben-Shaul, News & Analysis, OpenStack, Velostrata, VMware

Hybrid cloud enabler Velostrata bags $14m, exits stealth

Velostrata is the latest hybrid cloud vendor to come out of stealth

Velostrata is the latest hybrid cloud vendor to come out of stealth

Hybrid cloud software vendor Velostrata has secured $14m in series A funding as it emerged from stealth this week.

Velostrata has developed proprietary hybrid cloud software that competes with and functions like offerings provided by VMware and OpenStack.

The software lets users shift and manage workloads between different cloud platforms, and claims to make this process as frictionless as possible by decoupling the storage and compute processes.

The company claims decoupling the storage from compute helps make data more secure by enabling enterprises to keep their databases on-premise.

“Our vision for Velostrata is to enable frictionless hybrid clouds for any workload in real time,” said Issy Ben-Shaul, chief executive  and co-founder at Velostrata.

“Today, hybrid cloud deployments have largely been limited to corner-cases, because there are just far too many barriers involved for general-purpose use, and in particular, customers don’t want to move their large production data assets permanently to the cloud. At Velostrata, we have developed a breakthrough technology that eliminates those barriers and our unique approach has already transformed the hybrid cloud strategy for our large enterprise users,” Ben-Shaul said.

The company, which was founded last year, plans to use the funding to bolster its sales and go-to-market strategy.

There is certainly no shortage of hybrid cloud tools on the market today, with each vendor pitching their own secret sauce in making hybrid workload management and deployment seamless and pain-free. Velostrata’s offerings seem well suited to some hybrid use cases – cloud-bursting, storage consolidation, DR – it seems like one of the primary hybrid challenges that has yet to be solved is latency, one of the problems that severely limits practical use cases for hybrid (i.e. using hybrid cloud to restore performance and service reliability for anything more than a database) and which has yet to be solved.

“The feedback we’ve received from enterprises in our early adopter program has been tremendous and further establishes that our approach to enabling on-demand hybrid cloud for production workloads is unique in the industry,” Ben-Shaul said.

Alex Freedland, August Capital, Diane Bryant, Ericsson, Funding, Insight Venture Partners, Intel, Mirantis, News & Analysis, Open Source, OpenStack, SAP Ventures, Sapphire Ventures, WestSummit Capital.

Intel, Ericsson bet $100m on Mirantis and OpenStack

OpenStack vendor Mirantis is raking in buy-in from investors

OpenStack vendor Mirantis is raking in buy-in from investors

Pure play OpenStack vendor Mirantis has secured $100m in new funding this week in a round led by Intel Capital, with the companies also announcing deepened collaboration in the cloud arena.

The latest round, which comes less than a year after Mirantis secured $100m in series B funds from investors, also included participation from new investor Goldman Sachs and existing investors August Capital, Insight Venture Partners, Ericsson, Sapphire Ventures (formerly SAP Ventures) and WestSummit Capital.

Mirantis said the cash will be used to bolster its partnerships with vendors and other organisations innovating with OpenStack.

“With Intel as our partner, we’ll show the world that open design, open development and open licensing is the future of cloud infrastructure software. Mirantis’ goal is to make OpenStack the best way to deliver cloud software, surpassing any proprietary solutions,” said Alex Freedland, co-founder and president of Mirantis.

“Every industry is being disrupted by software. Smart enterprises are embracing the cloud to grow top line revenues and get new services to market faster. Mirantis is the only vendor 100 per cent committed to only OpenStack,” Freedland said.

At the same time, Intel and Mirantis announced the two companies would deepen their partnership and work together on Intel’s Clouds for All initiative, a series of partnerships with ISVs announced earlier this summer which are intended to accelerate cloud interoperability and boost deployments.

“Our investment in Mirantis is the next step in bringing open cloud infrastructure to the entire industry as part of Intel’s ‘Cloud for All’ initiative,” said Diane Bryant, senior vice president and general manager, Data Center Group, Intel.

“As enterprises embrace public, private and hybrid cloud strategies, they need choices in their infrastructure software. OpenStack is an ideal open solution for cloud-native applications and services, and our collaboration with Mirantis is well placed to ensure the delivery of critical new enterprise features helping to create of tens of thousands of clouds,” Bryant said.

Cloud Storage, Funding, News & Analysis, Storage, Tintri, Virtualisation

Storage tech provider Tintri bags $125m to take on EMC, NetApp

Tintri secured $125m in series F funding this week

Tintri secured $125m in series F funding this week

Storage specialist Tintri has secured $125m in a funding round the company said would go towards accelerating development of its virtualised storage solution.

The latest funding round, led by Silver Lake Kraftwerk with participation from Insight Venture Partners, Lightspeed Ventures, Menlo Ventures and NEA brings the total investment secured by Tintri since its founding in 2008 to $260m.

Tintri specialises in storage hardware optimised to serve up data for individual virtual machines. The company’s storage servers blend both HDD and SSD tech in order to optimise hot and cold storage and access, making storage more performant by making it smarter.

“The storage industry is going through a dramatic transformation. Virtualization and cloud are forces for change—and conventional DAS, NAS and SAN storage is struggling to keep pace. That’s why our message of VM-aware storage (VAS) is winning in the marketplace,” said Ken Klein, chairman and chief executive for Tintri.

“This funding fuels our mission—we’ll be growing our global footprint and raising visibility of the business benefits of storage built specifically for virtualized enterprises.”

The company’s virtualisation-aware storage wares have enjoyed some solid traction among some of the world’s largest companies and service providers including Chevron, GE, the EIB, NTT, SK Telecom and Rogers Communications.