Low-code focused OutSystems raises $150M at a $9.5B valuation
This morning OutSystems, a low-code app development service, announced that it has closed $150 million in new capital. The round was led by Abdiel Capital and Tiger Global. Notably this is not the largest funding event that the Portugal and U.S.-based software company has raised. TechCrunch covered a $360 million round that OutSystems raised in 2018.
OutSystems was founded in 2001, making it older than most companies that we cover on TechCrunch, and yet it remains privately held. And like many startups, it appears to have caught a tailwind from the accelerating digital transformation of companies both large and small.
By selling $150 million worth of its own shares at a $9.5 billion valuation, OutSystems parted ways with around 1.6% of itself in the deal. Investors would not be willing to buy such a tiny slice of a company for such a price if they didn’t have confidence in its future performance.
The new funds put OutSystems on an IPO path, we reckon; the company declined to discuss public market plans with TechCrunch. It could go out sooner rather than later. This round smells a bit like pre-IPO capital, and OutSystems touted its model to TechCrunch as “efficient” in a conversation about its new funding, implying moderate cash-consumption at worst.
TechCrunch had asked the company to break down its stated plan to invest its new capital in both go-to-market (GTM) capabilities and product (R&D) work. OutSystems CEO Paulo Rosado told TechCrunch in an email that even before this (Read more...)