Series B rounds used to be about establishing a product-market fit, but for some startups the whole process seems to be accelerating. Harness, the startup founded by AppDynamics co-founder and CEO Jyoti Bansal is one of those companies that is putting the pedal the metal with his second startup, taking his learnings and a $60 million round to build the company much more quickly.
Harness already has an eye-popping half billion dollar valuation. It’s not terribly often I hear valuations in a Series B discussion. More typically CEOs want to talk growth rates, but Bansal volunteered the information, excited by the startup’s rapid development.
The round was led by IVP, GV (formerly Google Ventures) and ServiceNow Ventures. Existing investors Big Labs, Menlo Ventures and Unusual Ventures also participated. Today’s investment brings the total raised to $80 million, according to Crunchbase data.
Bansal obviously made a fair bit of money when he sold AppDynamics to Cisco in 2017 for $3.7 billion and he could have rested after his great success. Instead he turned his attention almost immediately to a new challenge, helping companies move to a new Continuous Delivery model more rapidly by offering Continuous Delivery as a Service.
As companies move to containers and the cloud, they face challenges implementing new software delivery models. As is often the case, large web scale companies like Facebook, Google and Netflix have the resources to deliver these kinds of solutions quickly, but it’s much more difficult for most other companies.
Bansal saw an opportunity here to package continuous delivery approaches as a service. “Our approach in the market is Continuous Delivery as a Service, and instead of you trying to engineer this, you get this platform that can solve this problem and bring you the best tooling that a Google or Facebook or Netflix would have,” Basal explained.
The approach has gained traction quickly. The company has grown from 25 employees at launch in 2017 to 100 today. It boasts 50 enterprise customers including Home Depot, Santander Bank and McAfee.
He says that the continuous delivery piece could just be a starting point, and the money from the round will be plowed back into engineering efforts to expand the platform and solve other problems DevOps teams face with a modern software delivery approach.
Bansal admits that it’s unusual to have this kind of traction this early, and he says that his growth is much faster than it was at AppDynamics at the same stage, but he believes the opportunity here is huge as companies look for more efficient ways to deliver software. “I’m a little bit surprised. I thought this was a big problem when I started, but it’s an even bigger problem than I thought and how much pain was out there and how ready the market was to look at a very different way of solving this problem,” he said.