Oversubscribed Series C Round of Funding Driven by Andreessen Horowitz, Greylock Partners, Madrona Venture Group and Shasta Ventures, amid 300 Percent Bookings Growth
Seattle, Wash. - August 31, 2010 - Apptio, the leading provider of on-demand Technology Business Management (TBM) solutions, today announced an oversubscribed $16.5 million series C round of funding led by Shasta Ventures, with strong participation from all current investors including Andreessen Horowitz, Greylock Partners and Madrona Venture Group. The additional funding will be used to scale Apptio's business across all functions, accelerate growth into new markets and capitalize on the untapped market opportunity for solutions that help businesses manage the cost, quality and value of IT services. Apptio's funding comes on the heels of 300-percent bookings growth, rapid product innovation, broad industry recognition and global customer adoption.
Corporate IT is at a major inflexion point. IT is under immense pressure to act as a service provider to the business with transparency and greater cost efficiency, while simultaneously reacting to a major shift in the supply chain of IT services brought on by the cloud. IT leaders need systems and processes to manage the business of IT. Technology Business Management (TBM) provides a single source of record for both IT financial and operational data, data analytics to drive real-time decision support, and IT-specific applications to automate TBM challenges and streamline business processes. Apptio delivers this unique combination of technology in an enterprise-class SaaS model to maximize business value.
In a recent survey, despite that over three-quarters of IT leaders said that it would be very valuable to have systems to track the annual total cost to deliver and maintain IT services, more than half do not have regular communication process for financial reporting nor transparency on the breakdown of their IT budget. In response, visionary CIOs are using Apptio to understand and communicate the total cost of IT services, provide proper financial transparency mechanisms and demonstrate alignment of their organizations with business priorities.
"Apptio is one of the few companies today that will become the industry's next big success story," said Ravi Mohan, partner at Shasta Ventures. "The company's SaaS-based business model, combined with its ability to deliver incredible value to global leading IT organizations, is the perfect combination for success in a multi-billion dollar market. Technology Business Management will deliver a quantum leap improvement in efficiency for enterprise IT. We believe Apptio will become the defacto way in which IT leaders manage the business of IT."
Over the past 12 months, Apptio has achieved unprecedented growth – doubling its stable of Fortune 1000 customers and earning 300 percent year-over-year bookings growth. Apptio's customer roster has quickly grown to include Alaska Airlines, Blue Cross Blue Shield, BNP Paribas, Cisco, EMD Chemical, Expedia, Hallmark, JPMorgan Chase, Saint Luke's Health System, Starbucks and Volkswagen Credit, among others. To meet the increasing demand for its solutions, Apptio has hired more than 30 employees since the beginning of the year, with 30 additional hires expected by the end of 2010.
"We are operating with a very strong cash position, but still received high interest from outside investors which ultimately influenced the timing of this financing round," said Sunny Gupta, co-founder, president and CEO of Apptio. "Customer adoption of our Technology Business Management solutions has doubled, and with this funding we can rapidly accelerate our growth, launch new products and pursue new markets to further cement our leadership in this multi-billion dollar market."
Apptio is the leading independent provider of on-demand Technology Business Management (TBM) solutions for managing the business of IT. Apptio enables IT leaders to manage the cost, quality and value of IT Services by providing deep visibility into the total cost of IT services, communicating the value of IT to the business through an interactive Bill of IT™, and strategically aligning the planning, budgeting and forecasting processes. Apptio's TBM solutions play a critical role in helping companies understand and drive chargeback, virtualization, cloud and other key technology initiatives. Global enterprise customers such as Bank of America, Boeing, JPMorgan Chase, Microsoft, St. Luke's Health System, and Swiss Re rely on Apptio® products and services to reduce costs and align IT with business priorities. For more information, visit the Apptio website or the Apptio blog.
Barokas PR for Apptio