Application performance management provider AppDynamics announced a $50 million Series D growth financing round. The financing will support expansion into the global enterprise market, increase research and development investment, and accelerate hiring to meet the high demand for its platform. The round was led by new investor Institutional Venture Partners (IVP), and also included AppDynamics’ current investors: Greylock Partners, Kleiner Perkins Caufield & Byers, and Lightspeed Venture Partners.
“AppDynamics is poised to become the leader in a multi-billion dollar market with its unique technology and its customer-friendly sales model," said Steve Harrick, General Partner at IVP. "IVP is a believer with conviction in AppDynamics’ vision, market opportunity, and leadership team. The rapid growth and customer momentum at AppDynamics points to a bright future for AppDynamics. Supporting a company that solves practical, real-world problems in large markets fits squarely with IVP’s investment strategy and we believe AppDynamics is on a trajectory to become the next great enterprise software company.”
The latest funding round follows a two year period of explosive sales growth of 300 percent compound annual growth rate. The San Francisco company was founded in 2008 and recently strengthened its executive leadership team. AppDynamics currently monitors over 51 billion transactions per day among the customers of its Pro product.
"Finding the root cause of application performance in a complex, distributed app isn't like trying to find a needle in a haystack - rather it's like try finding a needle in a stack of needles," said Ryan Aylward, CTO at Glassdoor.com. "AppDynamics actually makes this possible. It's an easy-to-use solution that really helps my team ensure that our web site is always operating at peak performance."
“Businesses all over the world are adopting cloud and agile architectures to run their mission-critical applications and AppDynamics is becoming the leading management platform to help them through that transition,” said Jyoti Bansal, CEO of AppDynamics. “In 2012 we saw rising demand for AppDynamics solution, particularly from organizations looking for the next generation of an Application Performance Management Platform that can effectively scale with their growth.”