Apptio, a five-year-old, Seattle-based company that sells enterprise software as a service to manage IT and operations at large companies, has closed a $50 million Series D round led by T. Rowe Associates. Existing investors Andreessen Horowitz, Greylock Partners, Madrona Venture Group and Shasta Ventures also participated in the financing, which brings Aptio’s funding to date to $91 million.
Apptio, the leading provider of on-demand Technology Business Management (TBM) solutions, today announced that it has closed a $50 million Series D funding round. Certain investment strategies managed by T. Rowe Price Associates, Inc. led the round and were also joined by existing investors Andreessen Horowitz, Greylock Partners, Madrona Venture Group and Shasta Ventures. The new round of capital will be used to further invest in the development of the company’s TBM platform, expand market penetration, drive customer success, and maintain its independence as the industry’s trusted provider of TBM solutions. The Series D round brings the total amount raised by Apptio to $91 million. In addition, the company also announced it has appointed current Apptio Board Member Tom Bogan as Chairman of the Board. Bogan is currently Chairman of the Board for Citrix (CTXS) and serves as an independent Director for PTC (PMTC), in addition to several other private companies.
“In my three decades leading enterprise software companies, I have never seen the convergence of disruptive technologies drive such a fundamental transformation in the IT delivery model. Technology Business Management as envisioned by Apptio promises to re-shape the way IT operates,” said Tom Bogan, Chairman of the Board for Apptio. “Apptio delivers highly automated and integrated IT processes including transparency, benchmarking, planning, and performance management. The Apptio platform provides CIOs with the ability to translate IT capabilities into a language that business leaders understand. It is truly an honor to assume this role and I am looking forward to working with this dynamic team as they build the next great enterprise software company.”
“Apptio has pioneered the creation of a new enterprise SaaS category for CIOs that enables them to manage the business of technology and clearly communicate its value to the enterprise,” said John O’Farrell, general partner for Andreessen Horowitz. “This is a winning team that knows how to execute at scale. We are delighted to be participating in this latest funding round.”
Since closing its Series C round in November 2010, Apptio has demonstrated momentum across all facets of its business. The company more than doubled revenues and now counts more than 85 global enterprise companies as customers, including Bank of America, Boeing, British Petroleum, Cisco, First American, JPMorgan Chase, and Swiss Re. With its rapid customer growth, Apptio now has more than $101 billion in IT spend under management. Additionally, Apptio has established a vibrant CIO community whose collective goal is to define and share best practices around IT transformation via TBM. In response to increased market demand, Apptio has also more than doubled its employees from 115 in December 2010 to more than 250.
“There is a perfect storm brewing in today’s IT environment. The emergence of Cloud and SaaS options have shattered the IT monopoly, forcing CIOs to become a competitive service provider and prove their value to the business. Now more than ever, CIOs require a Technology Business Management system to run the business of IT if they are to keep their seat at the table,” said Sunny Gupta, president, co-founder, and CEO of Apptio. “Apptio’s vision is to enable every CIO across all verticals and sizes to better communicate the cost, quality, and value of their IT investments. Just as CRM products are the business system for the office of the VP of Sales, Apptio is the business system for the office of the CIO.”
Allen & Company LLC served as financial adviser to Apptio and assisted the company in putting together this financing.
About Apptio Apptio is the leading independent provider of on-demand Technology Business Management (TBM) solutions for managing the business of IT. Apptio enables IT leaders to manage the cost, quality and value of IT Services by providing deep visibility into the total cost of IT services, communicating the value of IT to the business through an interactive “Bill of IT,” and strategically aligning the planning, budgeting and forecasting processes. Apptio’s TBM solutions play a critical role in helping companies understand and drive chargeback, virtualization, Cloud and other key technology initiatives. Global enterprise customers such as Bank of America, Boeing, Cisco, Clorox, Facebook, JPMorgan Chase, Microsoft, St. Luke’s Health System, and Swiss Re rely on Apptio to manage more than $101 billion in annual IT spending. For more information, visit the Apptio website or the Apptio blog.