Cloud communications company Twilio has raised a $70 million Series D round
led co-led by Redpoint Ventures and Bessemer Venture Partners, with Draper Fisher Jurvetson also participating. As part of the deal, Scott Raney, a partner with Redpoint, has joined the board. The San Francisco-based company has now raised about $103 million in total funding, according to data from Thomson Reuters (publisher of peHUB). The company was seeded in 2009 by a number of individual investors, including Manu Kumar of K9 Ventures; Jeff Fluhr of Spreecast; Dave McClure of 500 Startups; and Chris Sacca of Lowercase Capital, among others. Twilio was set to announce the funding round on June 12, but tech blogs broke the news earlier today. Twilio had been the subject of fundraising rumors for weeks, with one source telling peHUB earlier this week that the latest round would likely exceed $50 million and come with at least a $500 million valuation. CEO Jeff Lawson told TechCrunch today that interest in the round was higher than expected. Twilio provides an open API for developers to create telephony services in the cloud for Web and mobile phone apps.
(CORRECTION: An earlier version of the post above incorrectly stated what firm led the Series D round. The funding was co-led by Redpoint Ventures and Bessemer Venture Partners.)
Twilio Announces $70 Million in Series D Funding,
Redpoint Ventures and Draper Fisher Jurvetson Join as Investors
Scott Raney of Redpoint Appointed to Twilio Board of Directors
SAN FRANCISCO–Twilio (http://www.twilio.com), the cloud communications company, today announced the completion of a $70 million Series D round of funding. New investors include Redpoint Ventures, who led the round with existing investor Bessemer Venture Partners, and Draper Fisher Jurvetson (DFJ). These firms join other existing investors in supporting Twilio’s mission to change the way businesses communicate. In addition, Twilio welcomed Scott Raney, a partner with Redpoint, to the company’s board of directors.
“It’s an exciting time to be at Twilio,” said Jeff Lawson, co-founder and CEO of Twilio. “For each of the past three years, Twilio experienced more than 100 percent revenue growth as we helped developers and corporations realize they can tap the power of the cloud for voice and messaging services. This represents a multi-billion-dollar market opportunity, and we’re just beginning to see what’s made possible by the developers building solutions on top of our platform. ”
Twilio was recently named as one of CNBC’s 50 Disruptors, companies that are changing the economy and overall business landscape. Companies on this list are organizations that have entered traditional sectors and turned them upside down creating ripple effects throughout their economic ecosystems. Also on the list were Twilio customers Airbnb, Box, Shopify, and Uber among others. Those companies are all using Twilio’s communications API platform to transform the hospitality, data storage, retail, transportation and other industries.
As part of this announcement, Scott Raney joins Twilio’s board of directors. Raney is a partner with Redpoint Ventures, focusing on information and consumer technology with a particular emphasis on cloud computing, on-demand software, enterprise infrastructure and mobile apps and platforms. Raney also serves on the board of directors or has been involved with Redpoint’s investments in adap.tv, BranchOut, Cloud.com, Expensify, Heroku, Jumptap, Path and Stripe.
“Twilio has built an exceptional business around the vision of changing communications forever,” said Scott Raney, partner at RedPoint Ventures. “The team Jeff has assembled is executing on that vision and capturing the attention of developers and companies in a range of markets. We’re thrilled to now be part of that team and help Twilio accelerate new product development and further strengthen its marketing and sales efforts around the world.”
DFJ joins Twilio’s Series D financing, contributing expertise to the company given its growing portfolio of enterprise cloud computing companies including Box, SugarCRM, InsightSquared, RichRelevance, PubMatic, ShareThis and Yodle
Twilio virtualizes traditional on-premises telecommunications infrastructure allowing developers to move voice and messaging applications to the cloud. In much the same way that corporations have migrated CRM, ERP, compute-processing power and storage to the cloud, Twilio enables the same for communications. Twilio’s combination of communications API platform and business model allows companies to eliminate massive upfront investments in hardware with pay-as-you-go pricing, allows developers to build exactly the solutions they want with standard web programing languages, and scales to meet any volume requirement thanks to the on-demand power of the cloud.
In the past year, Twilio expanded its presence globally and is now available in more than 40 countries. The company introduced a range of new capabilities and products including new Android and iOS development kits for the company’s Twilio Client product, WebRTC integration for improved voice calling from within web browsers, <SIP> from Twilio that enables enterprises to more easily integrate existing on-premises solutions with Twilio’s cloud-based platform, multi-user account management, and much more. In addition, the company inked partnerships with Amazon Web Services, Google Cloud Platform, Microsoft Azure, Japanese service provider KDDI Web Communications and others.
The company now employs more than 150 people in United States and Europe. The company also recently relocated its San Francisco headquarters to a 40,000 square foot facility to accommodate existing staff and future growth.
Twilio (www.twilio.com) is reinventing traditional telecom by moving telephony from the hardware closet to the cloud. Twilio provides a cloud infrastructure that any web developer can leverage to orchestrate phone calls, text messages and VoIP communications in existing web and mobile applications. The company is privately held and headquartered in San Francisco, California.