New funding based on company’s unique product experience platform and 400 percent annual revenue growth
December 12, 2016 08:30 AM Eastern Standard Time
RALEIGH, N.C.–(BUSINESS WIRE)–Pendo, a data-driven platform that helps companies deliver great software product experiences, today announced it has raised $20 million in Series B financing, led by Spark Capital with participation from existing investors Battery Ventures, Contour Venture Partners, Core Capital Partners, IDEA Fund Partners and Salesforce Ventures. As part of the financing, Spark Capital General Partner Megan Quinn will join Pendo’s board of directors.
“Pendo has given us visibility into our product that we couldn’t get anywhere else”
The shift to SaaS and recurring revenue has empowered a new set of business users who demand that their software at work behave like their software at home – fast, friendly and intuitive. To differentiate, enterprise software products must deliver an exceptional product experience from onboarding to adoption, retention and growth.
Pendo provides software product managers and teams with a powerful integrated platform to better understand and improve the product experience. Without requiring any engineering resources, organizations can use Pendo to extend their product to capture all user behavior, gather feedback, and provide contextual help inside their applications. This unique combination of capabilities enables companies to create a personalized, adaptive experience for each and every user.
“Pendo has given us visibility into our product that we couldn’t get anywhere else,” said Josh Merrill, Head of Product & Marketing at eShares, Inc. “Every team at eShares uses Pendo to make better decisions. It has become part of the workflow of how we build and manage our product.”
Pendo’s customer count has grown 30x over the last 24 months. Recurring revenues have grown by 400 percent over the last 12 months. Pendo is now tracking over 6 billion user actions per month. Current clients include Coupa, FICO, Infor, Optimizely and Rapid7, among others. Within those companies Pendo is used by numerous teams in the shared interest of improving their product experience, including product management, user experience, sales, customer success, marketing, engineering, and executive leadership. The financing will enable the company to continue to accelerate its growth and expand its product capabilities.
“Business software is often slow, complex, and hard to use. In my experience leading product development teams and as an investor, there is a clear trend toward business users demanding an experience at least as good as the consumer products they use. Pendo offers an extremely attractive solution to that problem for teams that are looking to create better, more intuitive product experiences for the people that use their software. We couldn’t be more excited to join the Pendo team,” said Spark Capital General Partner Megan Quinn.
“Put simply, Pendo helps companies deliver a great product experience,” said Todd Olson, CEO of Pendo. “There is no reason software can’t be at least as easy to use as consumer products. When a company truly understands its users, they can personalize and adapt the experience inside their product to make their users more productive. Pendo exists to help companies create software that is able to make every individual user successful, and while proud of our growth to this point, we feel we’re in the early innings of the potential ahead. We are excited and honored to have Megan and her team at Spark Capital as partners in this journey.”
Pendo was founded in 2013 by former product managers that have experienced the joys and challenges of creating great products at companies like Rally, Google, Cisco, and Red Hat, among others. With a powerful analytics and guidance platform designed to help companies understand and influence how users interact with their software applications, Pendo is on a mission to improve society’s experiences with software. For more information, visit: www.pendo.io.
About Spark Capital:
Spark Capital is a venture capital firm that invests in startups led by creative thinkers. We partner with entrepreneurs who make products and services for consumers as well as business people. We are proud supporters of companies such as AdMeld, Oculus, Postmates, Slack, Tumblr, Twitter, Warby Parker, Wayfair, and Wealthfront. We have offices in SoMA in San Francisco, Astor Place in New York City, and the Back Bay in Boston. Spark Capital was founded ten years ago. In total we manage five funds with $3B under management.
About Salesforce Ventures:
Salesforce Ventures—Salesforce’s corporate investment group—invests in the next generation of enterprise technology to help companies connect with their customers in entirely new ways. Portfolio companies receive funding as well as access to the world’s largest cloud ecosystem and the guidance of Salesforce’s innovators and executives. With Salesforce Ventures, portfolio companies can also leverage Salesforce’s expertise in corporate philanthropy by joining Pledge 1% to make giving back part of their business model. Salesforce has invested in more than 150 enterprise cloud startups since 2009. For more information, please visit www.salesforce.com/ventures.
Mike O’Connell and Lisa Sorrentino, 617-502-4300
Rachael Horwitz, 510-871-7607