The Raleigh startup founded by serial entrepreneurs and Rally Software vets is ready for big time, shoveling in $11 million from high profile Silicon Valley venture capitalists to build up its product that improves the software development process.
co-founder Todd Olson
and team spent nearly a year building out software that makes it easy for developers and project managers to measure user engagement with the apps and products they build, helping to inform future development. Since it launched in January 2014, Pendo has experienced 30 percent monthly user growth and is tracking more than a billion engagements per month through clients like FICO, SciQuest, Coupa, Invoca and others.
One of Coupa's investors is now leading Pendo's round. Battery Ventures has been around more than three decades and has invested in 300 companies, including Coupa, Groupon, ExactTarget, Glassdoor and Dollar Shave Club. It's joined by Salesforce Ventures, an investment group within the software giant investing in enterprise cloud companies and funder of Pendo customer Invoca. The fund also recently invested in Wilmington banking software startup nCino's $29 million round.
Developer tools have been an increasingly popular category for venture capitalists, especially since venture capitalist Marc Andreessen
famously commented that "Software is eating the world." His firm Andreessen Horowitz has been a leader in funding these startups with GitHub, Stack Exchange and DigitalOcean in its portfolio. According to a recent story in the Wall Street Journal
, there are now more than 18 million software programmers around the world and 18 million IT professionals.
The pace of innovation in the software world certainly isn't slowing with that many people dedicated to it. That makes tools like Pendo's all the more necessary for companies to more effectively and efficiently spend their dollars on development.
We hope to catch up with Olson later today, but for now, hear his story in the video below. Update: We spoke with Olson and one of Pendo's investors andpublished this follow up story.