San Francisco-based AppDynamics Inks $20M

AppDynamics, a San Francisco-based maker of application performance management software, has raised $20 million in Series C financing. New investor Kleiner Perkins Caufield & Byers led the round, which also included participation from founding investors Greylock Partners and Lightspeed Venture Partners. The money will go toward growth efforts.

PRESS RELEASE
AppDynamics, the leading provider of next-generation application performance management (APM) solutions for mission-critical web applications, today announced that it has secured $20 million in Series C financing. New investor Kleiner Perkins Caufield & Byers (KPCB) led the round, which also included participation from founding investors Greylock Partners and Lightspeed Venture Partners. AppDynamics will use the capital to fuel the company’s growth, including the continued expansion of its engineering and sales teams to enable both groundbreaking product enhancements and aggressive new customer acquisition.

AppDynamics stands at the forefront of a generational change in how web applications are managed: modern applications are no longer monolithic in nature but are highly distributed and dynamic, fueled by architectural trends such as Cloud, SOA, Big Data and Agile Development. As a result, traditional application performance management solutions have become obsolete. AppDynamics is leading the charge in next-generation management technology to address this generational shift in web architectures. In addition, AppDynamics has combined its unique technology platform with a disruptive, low-touch sales model that is influenced by consumer software trends such as free downloads, no risk “try-before-you-buy” software trials, and zero consulting services.

“We see AppDynamics as perfectly positioned to take advantage of a seismic shift in how web applications are being created and managed,” said Matt Murphy, Partner at Kleiner Perkins. “Applications are moving to distributed, cloud-based architectures, a sea change that is already having a tremendous impact on the Operations and Development teams responsible for performance and uptime. AppDynamics’ phenomenal growth and success to date proves that they’re well positioned to take advantage of this transformation and help companies manage these new types of business-critical applications. We’re thrilled to be working with the outstanding AppDynamics team and contributing to the company’s expansion plans for 2012 and beyond.”

“Cloud computing is a once-in-a-generation IT shift, and AppDynamics is rapidly becoming the management platform for IT teams to manage the operational complexities of cloud-based application architectures,” said Jyoti Bansal, Founder and CEO of AppDynamics. “The continued strong interest from top-tier investors is a great validation of our vision, our market opportunity, and our growth story. The application management market has multiple billion dollars of annual IT spending and AppDynamics is well poised to become the leading solution in the market. The support and expertise of Matt and the Kleiner Perkins team will be critical as we continue to expand our business.”

AppDynamics achieved several notable milestones in 2011:

Accomplished 400% bookings growth, with international sales contributing over 35%
Surpassed over 60,000 users of AppDynamics Lite, a free download that helps IT Operations to troubleshoot application performance problems.
Completed 4 innovative product releases in 2011 including support for .NET, Big Data, and Agile release tracking
Earned a Customer “Net Promoter Score” (NPS) of greater than 73, placing AppDynamics in 99th percentile for customer loyalty & satisfaction among software companies
Successfully scaled world’s biggest APM deployment for a major web-scale application running in Amazon AWS cloud with over 5,000 cloud servers
Selected by BMC Software as strategic co-selling partner for managing modern web application architectures
Established partnerships with Cloud providers such as Amazon AWS, Microsoft Azure, OpSource, and Rightscale

About AppDynamics
AppDynamics is the leading provider of software-as-a-service (SaaS) and on-premise application performance management for modern application architectures in both the cloud and the data center. The company delivers solutions for highly distributed and agile environments, helping companies such as Netflix, Priceline, TiVo, ZipRealty, Taleo, and Swisscom monitor, troubleshoot, diagnose, and scale their production applications. Over 60,000 people have downloaded AppDynamics Lite, the company’s free Java troubleshooting solution, and the company was recognized as a Gartner APM Innovator. Visit our blog or follow us on Twitter.

About Kleiner Perkins Caufield & Byers
Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 600 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm’s portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. The firm has offices in Menlo Park, California; Beijing, China; and Shanghai, China.

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