PagerDuty is the newest cloud unicorn with a funding round that values it at $1.3 billion and gives CEO Jennifer Tejada what she says are options to buy up other startups or think about IPO.
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HN Discussion: https://news.ycombinator.com/item?id=17927788
Posted by romanhn
(karma: 887)Post stats: Points: 149 - Comments: 80 - 2018-09-06T17:22:27Z
PagerDuty CEO Jennifer Tejada is now running a startup valued at $1.3 billion.PagerDuty
Behind the scenes at companies like Capital One, PayPal and Netflix, a host of cloud computing tools hum quietly in the background, making sure websites are up, apps are working and users plugging away happily. At those three and at others, one of those key unsung tools is the product of a nine-year-old startup called PagerDuty. PagerDuty may lack the name recognition of an app like Slack, but the two have something new in common: membership in the club of cloud companies valued at more than $1 billion.
PagerDuty announced on Thursday it has raised $90 million in a round led by T. Rowe Price Associates and Wellington Management. VC investors Accel, Andreessen Horowitz and Bessemer Venture Partners joined the round, PagerDutyʼs largest to date (it has now raised $173 million overall) and one that values the company at $1.3 billion.
"We thought it was important to look for new partners we value and to get ourselves ready to scale the business effectively," says CEO Jennifer Tejada. "The focus is on putting the business in a position to maximize our optionality."
PagerDuty raised the round fast, in about four weeks, according to Tejada, leveraging favorable capital conditions and "one of the longest bull markets in the history of life on earth."
The company, which appeared at No. 41 on the Forbes Cloud 100 list in 2017, hadnʼt disclosed its previous valuation, but it was below $1 billion, Tejada confirmed. The new round was entirely primary capital, with the possibility for secondary sale in the future, she says, and was over-subscribed.
Tejada joined PagerDuty in July 2016, replacing cofounder Alex Solomon. The company says it passed $100 million in annual recurring revenue in recent months, benefiting from what Tejada says are two main trends: PagerDutyʼs place is a sort-of "startup starter kit," adopted early on alongside other tools suck as Slack and GitHub by growing companies to monitor their cloud performance and uptime; as well as the now somewhat worn-out "digital transformation" that reflects IT organizations across large businesses moving operations and applications to the cloud. "You have seconds, not minutes, to get things right," Tejada says. "Customers and consumers have options, so itʼs not just protection of the brand and experience, but with top line revenue that [the category] has become increasingly important."
PagerDuty has shifted some of its focus to doing more with the data it tracks for customers in the future, an area in which it plans to invest. The company also will now have a war chest should it feel the need to make acquisitions, its CEO says.
As for adding public-company investors? Tejada says that PagerDuty is excited to be benchmarked against public companies and recognizes that going public eventually could help with its marketing and in gaining more capital. But she declined to give any specifics on PagerDutyʼs plans to join a herd of cloud unicorns to go public or file to do so in 2018. "As much as people talk about timing the market, the best companies go when they are ready," Tejada says. "We intend to build out that story."
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PagerDuty is the newest cloud unicorn with a funding round that values it at $1.3 billion and gives CEO Jennifer Tejada what she says are options to buy up other startups or think about IPO.www.forbes.com