Category: enterprise software

Inside GitLab’s IPO filing



While the technology and business world worked towards the weekend, developer operations (DevOps) firm GitLab filed to go public. Before we get into our time off, we need to pause, digest the company’s S-1 filing, and come to some early conclusions.

GitLab competes with GitHub, which Microsoft purchased for $7.5 billion back in 2018.

The company is notable for its long-held, remote-first stance, and for being more public with its metrics than most unicorns — for some time, GitLab had a November 18, 2020 IPO target in its public plans, to pick an example. We also knew when it crossed the $100 million recurring revenue threshold.

Considering GitLab’s more recent results, a narrowing operating loss in the last two quarters is good news for the company.

The company’s IPO has therefore been long expected. In its last primary transaction, GitLab raised $286 million at a post-money valuation of $2.75 billion, per Pitchbook data. The same information source also notes that GitLab executed a secondary transaction earlier this year worth $195 million, which gave the company a $6 billion valuation.

Let’s parse GitLab’s growth rate, its final pre-IPO scale, its SaaS metrics, and then ask if we think it can surpass its most recent private-market price. Sound good? Let’s rock.

The GitLab S-1

GitLab intends to list on the Nasdaq under the symbol “GTLB.” Its IPO filing lists a placeholder $100 million raise estimate, though that figure will change when the company sets an initial price range for its (Read more...)

Amount raises $99M at a $1B+ valuation to help banks better compete with fintechs



Amount, a company that provides technology to banks and financial institutions, has raised $99 million in a Series D funding round at a valuation of just over $1 billion.

WestCap, a growth equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments also participated.

Notably, the investment comes just over five months after Amount raised $86 million in a Series C round led by Goldman Sachs Growth at a valuation of $686 million. (The original raise was $81 million, but Barclays Principal Investments invested $5 million as part of a second close of the Series C round). And that round came just three months after the Chicago-based startup quietly raised $58 million in a Series B round in March. The latest funding brings Amount’s total capital raised to $243 million since it spun off from Avant — an online lender that has raised over $600 million in equity — in January of 2020.

So, what kind of technology does Amount provide? 

In simple terms, Amount’s mission is to help financial institutions “go digital in months — not years” and thus, better compete with fintech rivals. The company formed just before the pandemic hit. But as we have all seen, demand for the type of technology Amount has developed has only increased exponentially this year and last.

CEO Adam Hughes says Amount was spun out of Avant to provide enterprise software built specifically for the banking industry. (Read more...)

Figure raises $7.5M to help startup employees better understand their compensation



The topic of compensation has historically been a delicate one that has left many people — especially startup employees — wondering just what drives what can feel like random decisions around pay and equity.

Last June, software engineers (and housemates) Miles Hobby and Geoffrey Tisserand set about trying to solve the problem for companies by developing a data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates.

Now today, the startup behind that platform, Figure, announced it has raised $7.5 million in seed funding led by CRV. Bling Capital, Better Tomorrow Ventures and Garage Capital also participated in the financing, along with angel investors such as AngelList co-founder Naval Ravikant, Jason Calacanis, Reddit CEO Steve Huffman and other executives based in Silicon Valley.

The startup has amassed a client list that includes other startups such as fintechs Brex and NerdWallet and AI-powered fitness company Tempo. 

Put simply, Hobby and Tisserand’s mission is to improve workflows and transparency around pay, particularly equity. The pair had both worked at startups themselves (Uber and Instacart, respectively) and ended up leaving money on the table when they left those companies because no one had properly explained to them what their equity, which changed at every valuation, meant.  

Image Credits: Figure co-founders and co-CEOs Miles Hobby and Geoffrey Tisserand. Image Credits: Figure

So, one of their goals was to create a solution that would provide a user-friendly explanation of what a person’s equity stake really means, from tax (Read more...)

Appfire, provider of Atlassian apps, raises $100M to continue its buying spree



Appfire, a Boston-based provider of software development apps, announced Tuesday that it has received a $100 million investment from growth private equity firm TA Associates.

Founded in 2005, Appfire was bootstrapped until it got $49 million from Silversmith Capital Partners last May. Since that time, Appfire has acquired six companies in the Atlassian “ecosystem,” including Botron, Beecom, Innovalog, Navarambh, Artemis and Bolo.

The Boston-based company has been profitable for over a decade, according to Randall Ward, co-founder and CEO of Appfire. And while Ward declined to reveal valuation or hard revenue numbers, he did say that Appfire has seen its ARR more than double over the past year.

Since last June alone, the company says it has experienced:

  • A 103% year over year increase in ARR.
  • A 258% YOY increase in enterprise subscription revenue (data center only). 
  • A 182% YOY increase in all subscription revenue (data center and cloud).  

So why the need for institutional capital? With the latest funding, Appfire intends to extend its buying spree of complementary apps. 

Appfire has been acquiring businesses every six to eight weeks, and it plans to continue scooping them up at that pace, according to Ward.

It’s also looking to let shareholders cash in on their options.

Fun fact: Atlassian itself was bootstrapped for nearly a decade. The Australian enterprise software company was profitable from its inception in 2001 before taking its first round of external capital, a $60 million financing led by Accel, in July 2010. (Read more...)