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Bryter raises $16M for a no-code platform for non-technical people to build enterprise automation apps

Automation is the name of the game in enterprise IT at the moment: We now have a plethora of solutions on the market to speed up your workflow, simplify a process and perform more repetitive tasks without humans getting involved. Now, a startup that is helping non-technical people get more directly involved in how to make automation work better for their tasks is announcing some funding to seize the opportunity.

Bryter — a no-code platform based in Berlin that lets workers in departments like accounting, legal, compliance and marketing who do not have any special technical or developer skills build tools like chatbots, trigger automated database and document actions and risk assessors — is today announcing that it has raised $16 million. This is a Series A round being co-led by Accel and Dawn Capital, with Notion Capital and Chalfen Ventures also participating.

The funding comes less than a year after Bryter raised a seed round — $6 million in November 2019 — and it was oversubscribed, with term sheets coming in from many of the bigger VCs in Europe and the U.S. With this funding, the company has now raised around $25 million, and while the valuation is considerably up on the last round, Bryter is not disclosing what it is.

Michael Grupp, the CEO who co-founded the company with Micha-Manuel Bues and Michael Hübl (pictured below), said that the whole Series A process took no more than a month to initiate and close, an impressive turnaround considering the chilling effect that the COVID-19 health pandemic has had on dealmaking.

Part of the reason for the enthusiasm is because of the traction that Bryter has had since launching in 2018. Its 50 enterprise customers include the likes of McDonald’s, Telefónica, banks, healthcare and industrial companies, and professional services firms PwC, KPMG and Deloitte (who in turn use it for themselves as well as for clients). (Note: Because of its target users being large enterprises, the company doesn’t publish per-person pricing on its site as such.)

Bryter’s been seeing a lot of attention from customers and investors because its platform speaks to a big opportunity within the wider world of software today.

Enterprise IT has long been thought of as the less-fun end of technology: It’s all about getting work done, and a lot of the software used in a business environment is complex and often requires technical knowledge to implement, use, fix and adapt in any way.

This may still the case for a lot of it, especially for the most sophisticated tools, but at the same time we have seen a lot of “consumerization” come into IT, where user-friendly hardware and software built for consumers — specifically non-technical consumers — either inspires new enterprise services, or are simply directly imported into the workplace environment.

No-code software — like automation, another big trend in enterprise IT right now — plays a big role in how enterprise tools are becoming more user-friendly. One of the biggest roadblocks in a lot of office environments is that when workers identify things that don’t work, or could work much better than they do, they need to file tickets and get IT teams — also often overworked — to do the fixing for them. No-code platforms can help circumvent some of that work — so long as the roadblock of IT approves the use, that is.

Bryter’s conception and existence comes out of the no-code trend. It plays on the same ideas as IFTTT or Zapier but is very firmly aimed at users who might use pieces of enterprise software as part of their jobs, but have never had to delve into figuring out how they actually work.

There are already a lot of “low-code” (minimal coding) and other no-code platforms on the market today for business (not consumer) use cases. They include Blender.io, Zapier, Tray.io (a London-founded startup that itself raised a big round last autumn), n8n (also German, backed by Sequoia), and also biggies like MuleSoft (acquired by Salesforce in 2018 at a $6.5 billion valuation).

Bryter’s contention is that many of these actually need more technical know-how than they initially claim. Grupp pointed out that the earliest automation tools for enterprise have been around for decades at this point, but even most of the very modern descendants of those “will require some coding.” Bryter’s toolbox essentially lets users create dialogues with users — which they can program based on the expertise that they will have in their particular fields — which then sources data they can then plug into other software via the Bryter platform in order to “perform” different tasks more quickly.

Grupp’s contention is that while these kinds of tools have long been used, they will be in even more demand going forward.

“After COVID-19, workers will be even more distributed,” he said. “Teams and individuals will need to access information in a faster way, and the only way for big organizations to distribute that knowledge is through more digital tools.” The idea is that Bryter can essentially help bridge those gaps in a more efficient way.

Bryter’s target user and its approach underscores why investors like Accel see accessible, no-code solutions as a big opportunity.

“No-code software is really reducing the barriers of adoption,” Luca Bocchio, a partner at Accel, said in an interview. “If people like you and I can use the software, then that means demand can multiply by big numbers.” That’s in contrast to a lot of enterprise software today, which is very limited in how it can grow, he added. “Plus, enterprises these days want to see more future visibility in terms of the products they adopt. They want to make sure something will stick around, and so they tend not to want to work with super young startups. But it’s happening for Bryter, and the is a testament to Bryter and to the market potential.”

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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% of the Fortune 100 now using its database. Couchbase also today announced that, over the course of the last fiscal year, it saw 70% total contract value growth, more than 50% new business growth and over 35% 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,” Couchbase President and CEO Matt Cain said 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 — in addition, the company will continue to expand geographically to serve its global customer operations.

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BetterCloud scores $75M Series F as SaaS management needs grow

BetterCloud gives IT visibility into its SaaS tools providing the means to discover, manage and secure those tools. In the middle of a crisis that has forced most companies to move workers home, being able to manage SaaS usage in this way is growing increasingly significant.

Today the company announced a $75 million Series F. Warburg Pincus led the way with participation from existing investors Bain Capital Ventures, Accel, Greycroft Partners, Flybridge Capital Partners, New Amsterdam Growth Capital and e.ventures. Today’s round brings the total raised to $187 million, according to the company.

While CEO David Politis acknowledges the gravity of the current situation, he also recognizes that giving companies a way to manage their SaaS usage is more pertinent than ever. “What has happened in the last two months has been terrible for the world, but in some crazy way it has just made what we do a lot more relevant,” Politis told TechCrunch .

He says the pandemic has really accelerated the market opportunity because of the reliance on cloud services and the services his company provides.

Those services began as an operational layer on top of G Suite. Later it added support for Office 365 and in 2016 it moved to more general SaaS management. It now offers direct integrations into multiple SaaS apps including Box, Dropbox, Salesforce, Zendesk and more. The set of tools in Bettercloud gives IT control over security, configuration, spend optimization and auditability across SaaS applications.

In normal times after a large Series F round, we might be talking about this being the last round before an IPO, but Politis isn’t ready to commit to that just yet, especially in this economy. He does say, however, that he’s in it for the long haul and sees an opportunity to build a long-term, sustainable company.

“The last couple of months I’ve been thinking about this a lot, and when you take a $75 million round at the stage you’re not doing that because you want to sell the business. You’re doing that because you want to build something and build something really special,” he said.

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DigitalOcean raises $50M more from Access Industries and a16z

Earlier today, DigitalOcean announced that it raised $50 million more from prior investors Access Industries and Andreessen Horowitz. The capital comes after the SMB and developer-focused cloud infrastructure company raised nine-figures worth of debt back in February.

DigitalOcean is a large private company that generated revenue at a run rate of around $250 million towards the end of 2019. The company announced today that it has reached $300 million in annual recurring revenue, or ARR. (We recently added the company to our ARR club here.) That’s growth of around 20% in less than half a year, though we don’t know precisely when the company reached the $250 million mark, making it hard to calculate its true growth pace.

Critically, DigitalOcean is walking toward profitability while expanding.

DigitalOcean’s CEO Yancey Spruill told TechCrunch earlier this year that his firm would reach free cash flow positivity in the next few years, a timeline that appears to have moved up (more on that shortly). Provided that the cloud company can keep its growth pace up over the same time period, it could be well positioned for an IPO.

The new $50 million values the company at $1.15 billion, meaning it was worth $1.1 billion pre-money. DigitalOcean is not being valued like a SaaS startup today in revenue multiple terms, then, though its new valuation is still nearly double its old Series B valuation (a company spokesperson confirmed the numbers on that page).

New capital

TechCrunch wanted to know why the company raised equity capital so quickly after it had added debt to its books. The capital was surely welcome given the world’s economic condition, but the timing was worth digging into.

DigitalOcean was not “seeking additional funding,” according to Spruill, but after “reviewing our business performance and outlook with our investors at Access and a16z, they were interested in investing for our next phase of growth.” The company accepted, Spruill said.

Presumably, Digital Ocean’s quick revenue growth from a $250 million run rate to $300 million ARR played a part in the investment decision. For DigitalOcean, receiving a new, higher valuation and a monetary top-off from well-known investors may even provide a brand boost (see this article, especially in light of recent coverage the firm has attracted).

Regarding its plans for the new capital, Spruill told TechCrunch that DigitalOcean can now “better support the increase in demand we’ve seen from entrepreneurs and SMBs around the world as more businesses are transitioning to the cloud, particularly as a result of COVID.” Mark DigitalOcean down as one of the world’s companies that is seeing an uptick from the pandemic; most aren’t, but the firms that are appear to be using the moment to put more capital onto their balance sheets.

TechCrunch also wanted to know if the new capital opened new ground for the firm, or if its priorities for the new capital were similar to its preceding goals. The CEO told TechCrunch that his firm’s focus is the same, namely expanding its business.

“We remain committed to reaching $1 billion in revenue, achieving free cash flow profitability in the second half of this year and, ultimately, position DigitalOcean to be a public company,” Spruill said in an email.

That’s clear enough.

By that measure we can expect to see a DigitalOcean S-1 in the first half of 2021, if markets recover. So a16z and Access Industries (longtime investors in the company) could see a quick return for their most recent checks if current plans hold up.

The company’s release made note of “accelerating growth,” which TechCrunch wanted to know more about. How quickly is the company growing? Spruill didn’t share numbers to confirm or deny our rough math based on his firm’s public revenue milestones, but did tell TechCrunch that the company is “actively working on a number of initiatives to accelerate our revenue growth rate,” adding that these are internally dubbed “Grow Faster” initiatives.

Finally, TechCrunch was curious about the impact that COVID-19 is having on DigitalOcean. The company told us that it has “seen a modest increase in churn as a result of COVID-19,” but nothing too bad, saying that the change was “not significant” when “compared with recent trends immediately prior to the pandemic.”

On the positive side of the ledger, DigitalOcean said that its “sign up of new customers has been accelerating” and that it is seeing “increased business from some existing customers.” Adding that up for the SaaS kids: A little bit more churn, good new logo addition, and some upsell tailwinds. Overall that adds up to growth.

More when we have it, but now we’re at least set up to understand what the company does next.

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Instabug raises $5M Series A round led by Accel, as mobile app usage surges

There are some startups that behave like sprinters, and others that run a marathon. I came across Instabug when I was in Cairo in 2013. Born during the chaotic era of the Arab Spring, this plucky startup managed to make it to TechCrunch Disrupt, then Y Combinator in 2016, then a $1.7 million in seed round led by Accel Partners. Originally part of the Egyptian accelerator Flat6Labs Cairo, they raised $300,000 from angel investors in 2013.

Today they announced a $5 million Series A round, once again led by Accel . Other angel investors joining include Amr Awadallah, co-founder of Cloudera, and Jim Payne, founder and CEO of MoPub, both of whom have invested previously.

Instabug provides mobile developers with real-time insights throughout the app life cycle, with its bug and feedback reporting, secure crash reporting and in-app surveys. All the more important these days, given so many people are relying on apps during their pandemic lockdowns.

Omar Gabr, co-founder and CEO of Instabug, said in a statement: “We’ve been working with Accel since 2016 and we’re very excited to continue our partnership. We grew 120% in revenues in the last 12 months, adding dozens of Enterprise customers. We’ve always been running a disciplined business, we’re almost profitable for some time now. This is what made our fundraising fast in the middle of all the current events. Our fundraising conversations with Accel started after the pandemic outbreak.”

Instabug says that since the COVID-19 outbreak, it has seen a “massive surge” in usage, which has grown 45% since January. It’s also designed to streamline the communication between QA and developers, which is very relevant now, as many are working remotely.

Some 28 of the top 100 apps on the App Store use Instabug. Several competitors have been acquired, including Crashlytics (by Google) and HockeyApp (by Microsoft).

Given that the startup still has most of its team in Egypt, this is once again a great win for the MENA region.

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Where top VCs are investing in open source and dev tools (Part 1 of 2)

The once-polarizing world of open-source software has recently become one of the hotter destinations for VCs.

As the popularity of open source increases among organizations and developers, startups in the space have reached new heights and monstrous valuations.

Over the past several years, we’ve seen surging open-source companies like Databricks reach unicorn status, as well as VCs who cashed out behind a serious number of exits involving open-source and dev tool companies, deals like IBM’s Red Hat acquisition or Elastic’s late-2018 IPO. Last year, the exit spree continued with transactions like F5 Networks’ acquisition of NGINX and a number of high-profile acquisitions from mainstays like Microsoft and GitHub.

Similarly, venture investment in new startups in the space has continued to swell. More investors are taking shots at finding the next big payout, with annual invested capital in open-source and dev tool startups increasing at a roughly 10% compounded annual growth rate (CAGR) over the last five years, according to data from Crunchbase. Furthermore, attractive returns in the space seem to be adding more fuel to the fire, as open-source and dev tool startups saw more than $2 billion invested in the space in 2019 alone, per Crunchbase data.

As we close out another strong year for innovation and venture investing in the sector, we asked 18 of the top open-source-focused VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunities. For purposes of length and clarity, responses have been edited and split (in no particular order) into part one and part two of this survey. In part one of our survey, we hear from:

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Accel and Index back Tines, as the cybersecurity startup adds another $11M to its Series A

It was just a couple of months ago that Tines, the cybersecurity automation startup, raised $4.1 million in Series A funding led by Blossom Capital. The Dublin-based company is now disclosing an $11 million extension to the round.

This additional Series A funding is led by venture capital firm Accel, with participation from Index Ventures and previous backer Blossom Capital. The extra cash will be used to continue developing its cybersecurity automation platform and for further expansion into the U.S. and Europe.

Founded in February 2018 by ex-eBay, PayPal and DocuSign security engineer Eoin Hinchy, and subsequently joined by former eBay and DocuSign colleague Thomas Kinsella, Tines automates many of the repetitive manual tasks faced by security analysts so they can focus on other high-priority work. The pair had bootstrapped the company as recently as October.

“It was while I was at DocuSign that I felt there was a need for a platform like Tines,” explained Hinchy at the time of the initial Series A. “We had a team of really talented engineers in charge of incident response and forensics but they weren’t developers. I found they were doing the same tasks over and over again so I began looking for a platform to automate these repetitive tasks and didn’t find anything. Certainly nothing that did what we needed it to, so I came up with the idea to plug this gap in the market.”

To remedy this, Tines lets companies automate parts of their manual security processes with the help of six software “agents,” with each acting as a multipurpose building block. The idea is that, regardless of the process being automated, it only requires combinations of these six agent types configured in different ways to replicate a particular workflow.

In addition, the platform doesn’t rely on pre-built integrations to interact with external systems. Instead, Tines is able to plug in to any system that has an API. “This means integration with commercial, off-the-shelf products, or existing in-house tools is quick and simple, with most security teams automating stories (workflows) within the first 24 hours,” says the startup. Its software is also starting to find utility beyond cybersecurity processes, with several Tines customers using it in IT, DevOps and HR.

“We heard that Eoin, a senior member of the security team at DocuSign (another Accel portfolio company), had recently left to start Tines, so we got in touch,” Accel’s Seth Pierrepont tells TechCrunch. “They were in the final stages of closing their Series A. However, we were so convinced by the founders, their product approach and the market timing, that we asked them to extend the round.”

Pierrepont also points out that a unique aspect of the Dublin ecosystem is that many of the world’s largest tech companies have their European headquarters in the country (often attracted by relatively low corporation tax), “so it’s an incredibly rich talent pool despite being a relatively small city.”

Asked whether Accel views Tines as a cybersecurity automation company or a more general automation play that puts automation in the hands of non-technical employees for a multitude of possible use cases, Pierrepont says, given Hinchy and Kinsella’s backgrounds, the cybersecurity automation sector should be the primary focus for the company in the short term. However, longer term it is likely that Tines will be adopted across other functions as well.

“From our investment in Demisto (which was acquired by Palo Alto Networks earlier this year), we know the security automation or SOAR category (as Gartner defines it) very well,” he says. “Demisto pioneered the category and was definitively the market leader when it was acquired. However, we think the category is just getting started and that there is still a ton of whitespace for Tines to go after.”

Meanwhile, in less than a year, Tines says it has on-boarded 10 enterprise customers across a variety of industries, including Box, Auth0 and McKesson, with companies automating on average 100,000 actions per day.

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Zetwerk, an 18-month-old Indian B2B marketplace for manufacturing items, raises $32M

Zetwerk, an Indian business-to-business marketplace for manufacturing items, has closed a significantly large financing round as it scales its operations in the nation and also helps local businesses find customers overseas.

The 18-month-old startup said on Wednesday it has raised $32 million in a Series B financing round led by Lightspeed and Greenoaks Capital. Zetwerk co-founder and chief executive Amrit Acharya told TechCrunch in an interview that the startup has also raised about $14.2 million in debt from a consortium of banks, and others.

Existing investors Accel, Sequoia India and Kae Capital also participated in the round, which pushes the Bangalore-based startup’s total raise to date to about $41 million. Vaibhav Gupta, co-founder of business-to-business marketplace Udaan, and Maninder Gulati, one of the top executives at budget lodging startup Oyo also participated.

Zetwerk was founded by Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary last year. The startup connects OEMs (original equipment manufacturers) and EPC (engineering procurement construction) customers with manufacturing small-businesses and enterprises.

Unlike the more common e-commerce firms we come across every day, Zetwerk sells goods such as parts of a crane, doors, chassis of different machines and ladders. The startup operates to serve customers in fabrication, machining, casting and forging businesses. Currently, Zetwerk works with more than 100 enterprises and 1,500 small and medium-sized businesses. It delivers more than 15,000 parts each month.

“These are all custom-made products,” explained Acharya. “Nobody has a stock of such inventories. You get the order, you find manufacturers and workshops that make them. Our customers are companies that are in the business of building infrastructure.”

“We index these small workshops and understand the kinds of products they have built before. These indexes help bigger companies discover and work with them,” he added.

Once a firm has placed an order, Zetwerk allows them to keep a tab on the progress of manufacturing and then the shipping. This “hand-holding” is crucial, as in this line of business, manufacturing and shipping typically take more than two to three months.

Zetwerk has also enabled manufacturers in India to discover and find clients overseas. Today, manufacturers on the platform export their goods to North America and Southeast Asia, Acharya said. “India has a lot of depth in manufacturing, but much of it has not been tapped well,” he said.

Helping these manufacturing workshops find clients online is still a new phenomenon in the nation. Acharya said Zetwerk largely competes with domain project consultants in the offline work. “They specialize in certain products and geographies. So let’s say someone wanted to buy a machine XYZ in Orissa, they reach out to consultants who help them find workshops and estimate how much time it would take to get the project done.”

According to industry reports, manufacturing today accounts for 14% of India’s GDP. But the nation lacks a supporting ecosystem to execute projects in an efficient manner.

Vaibhav Agarwal, a partner at Lightspeed, said it was unusual to come across a market that is as large as $40 billion to $60 billion in India and global trade-tailwinds that creates opportunity to serve international demand.

The startup plans to infuse portions of the fresh capital into expanding its international operations. Acharya did not share exactly how many clients it has outside of India but said exports currently account for less than 5% of the startup’s GMV, or gross merchandize value.

He said the startup will continue to focus on helping Indian manufacturers find clients outside, as it is better suited to address this, as opposed to helping Indian companies find manufacturers overseas.

The startup will also explore helping its manufacturing workshops access working capital, though Acharya cautioned that it is not something that would happen anytime soon.

In a statement, Prayank Swaroop, a partner at Accel, said, “the use of technology in project planning, procurement, audits, and supply chain transparency is the core offering of Zetwerk which is completely original. Accel is very fortunate to be part of Zetwerk journey since the startup’s inception.”

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VSCO acquires video editing startup Rylo

The photo-sharing app behind the 2019 meme craze “VSCO girls” has acquired Rylo, a video editing startup founded by the original developer of Instagram’s Hyperlapse.

A spokesperson for VSCO, an eight-year-old subscription-based business on track to surpass 4 million paying users, declined to disclose the terms of the deal. Rylo had raised roughly $38 million in venture capital funding, reaching a valuation of $120.25 million with a $20 million Series B announced in October 2018, according to data collected by PitchBook.

San Francisco-based Rylo was backed by a number of institutional investors, including Sequoia Capital, Alumni Ventures Group, Icon Ventures and Accel — a Silicon Valley venture capital fund and key stakeholder in Oakland-based VSCO.

Founded in 2015, Rylo is best known for its 360° camera capable of creating cinematic video in 5.8K resolution. The device previously retailed for nearly $500 but now sells for as low as $250 on BestBuy.com. Under VSCO’s ownership, Rylo will focus exclusively on building out its video editing tools for mobile. The company tells us it will not continue to manufacture and sell its signature device but will continue to honor the warranty on previously sold cameras.

Rylo was launched by Alex Karpenko and Chris Cunningham. Karpenko, Rylo’s chief executive officer, previously founded Luma Camera in 2011, a video-capture, stabilization and sharing app acquired by Instagram in 2013. The deal marked Instagram’s first-ever acquisition; the app was subsequently shut down, with Karpenko joining Instagram’s team as a software engineer. Karpenko became key developer of Hyperlapse, Instagram’s time-lapse video app.

Cunningham, for his part, focused on iLife, Aperture and iPhoto for iOS as an engineer at Apple from 2008 to 2013. Cunningham eventually exited Apple for Facebook-owned Instagram, where he worked as an iOS engineer focused on Instagram Direct.

VSCO, led by co-founder and chief executive officer Joel Flory, charges users $19.99 per year for access to a full-suite of mobile photo-editing tools, exclusive photo filters, tutorials and more. In a recent interview with TechCrunch, Flory outlined ambitions to expand beyond photo-sharing and editing to video and illustration. The company’s latest deal, its first since its 2015 acquisitions of Moving Sciences and Artifact Uprising, confirms its intent to grow the business and carve out new revenue streams.

“We’ve seen video editing double on VSCO and DSCO, our GIF creation tool remains one of our most popular features,” Flory writes in a company blog post. “It’s clear that our users want more video tools and new ways to tell their stories through creative self-expression.”

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Accel closes new $550M fund for India

Accel, one of the world’s most influential venture capitalist firms, is getting more bullish on India.

The Silicon Valley-headquartered firm, which largely focuses on early-stage investments, said today it has closed $550 million for its sixth venture fund in India.

This is a significant amount of capital for Accel’s efforts in the country, where it began investing 15 years ago and has infused roughly $1 billion through all its previous funds.

Anand Daniel, a partner for Accel in India, told TechCrunch in an interview that the VC fund will continue to focus on identifying and investing in seed and early-stage startups.

But the fund realized it needed more money so it could actively participate in follow-on rounds (later-stage financing rounds) of its portfolio startups. The announcement today follows Accel’s similar recent push in Europe and Israel, where it closed a $575 million fund.

“We also selectively do growth investments for companies that are scaling well, such as Swiggy, UrbanClap, BlackStone and Bounce. We have continued to back them through Series B and Series C rounds,” he said.

At the risk of being accused of bias, I’ll say this: Accel India is a rare Indian fund that had credible exits and more promising exits in the pipeline. They’re also some of the nicest people to work with. https://t.co/aZGjDgSQKe

— JPK (@therealjpk) December 2, 2019

Like in many other markets, Accel’s track record in India is quite impressive. It participated in the seed financing round of e-commerce firm Flipkart, which was then valued at $4 million post-money. Walmart bought a majority stake in Flipkart last year for $16 billion. (This helped Accel net more than $1 billion in return from Flipkart.)

Accel, which has nine partners and more than 50 members in total in India, also invested in the seed round of SaaS giant Freshworks, which is now valued at more than $3 billion, food delivery startup Swiggy, also valued at north of $3 billion, and recently turned unicorn BlackBuck. Accel has been the first institutional investor for 85% of startups in its portfolio.

The VC firm says 44 of the 100-odd startups in its India portfolio today are valued at over $100 million each. In total, including Flipkart’s $21 billion market value, Accel’s portfolio firms have created $44 billion in market value.

Some of the investments Accel has made in India

“When we started our first fund in India in 2005, the world was a very different place. Just 1 in 50 Indians had access to the internet and mobile phone ownership was nascent. ​Yet we firmly believed that India was on the cusp of a big change,” the firm said in a statement.

“Today, the opportunity ahead is significantly bigger than when we started in 2005: India can now digitally identify 1.3 billion people, has 600 million internet users and 150 million online transacting customers with a national payments platform that processes $20 billion a month.”

Daniel said moving forward Accel will continue to focus on consumer, business-to-business, fintech, healthcare and global SaaS categories. “We have nine partners with their own areas of interest. They invest from their own conviction and finance seed rounds. If we see a particular sector evolving, then we do a deeper thesis work,” he said.

“We then develop deeper confidence for the space. For example, back in the day we invested in mobility startup TaxiForSure, long before Uber had arrived in India. That helped us understand mobility well. We have used those learnings to invest in several more mobility startups.”

Accel’s growing interest in India comes at a time when several other giants, including SoftBank and Prosus Ventures, have also become more active in the nation — though they tend to finance later-stage rounds.

For Indian startups that are already having their best year, this can only be good news.

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