Rally Software Development Corp., a Boulder, Colo.-based provider of on-demand application life cycle management solutions, has raised $16.75 million in Series C funding. Mohr Davidow Ventures led the round, and was joined by return backers Boulder Ventures, Mobius Venture Capital and Vista Ventures.
Rally Software Development Corp.�, the #1 partner for Agile success through its family of products, coaching and community support, today announced it has closed a $16.85 million Series C round of financing. Mohr Davidow Ventures (MDV) led the round with existing backers Boulder Ventures, Mobius Venture Capital and Vista Ventures each increasing their investment. Rally will use the proceeds to further accelerate the next phase of company growth as it continues to deliver superior on-demand Agile solutions as well as build a significant sales presence in Boston and Silicon Valley as the first step in broadening its sales footprint across the U.S. and Europe.
Renowned for its ability to invest in organizations that utilize today’s most innovative technologies to solve critical business problems, MDV is no stranger to the ALM industry. MDV partner Bryan Stolle co-founded MDV-backed Agile Software and served as CEO and later Chairman of the Board until Oracle acquired the company in July 2007. Stolle is widely regarded as a visionary and pioneer in the product lifecycle management (PLM) industry and will join Rally’s Board of Directors.
“We’re thrilled that our investors share Rally’s vision and understand the market need for on-demand solutions that help customers successfully adopt and scale Agile practices,” said Tim Miller, Rally’s CEO. “We’re especially pleased to gain the support of MDV and look forward to mirroring the success that Bryan experienced in the PLM industry for ourselves in the ALM market.”
After doubling its subscription revenue in 2007 for the third year in a row, Rally has continued its tremendous growth by increasing its active subscriber base by 50 percent and bolstering its roster of new corporate customers by 20 percent during the first quarter of 2008. The company was also awarded its third consecutive Jolt Product Excellence Award in March.
“Rally and its executive team possess all of the characteristics that MDV looks for in its portfolio companies, including a strong entrepreneurial spirit and the ability to develop innovative technologies to solve today’s most urgent business problems,” said Stolle. “Rally has done a tremendous job leveraging the power of the Software-as-a-Service model to deliver a lineup of solutions that help end-users address their most critical software development issues. I look forward to working with them as they continue to follow on their current path of success.”
“Rally is a recognized leader with its on-demand Agile lifecycle management solution,” said Lisa Reeves, general partner at Vista Ventures. “We’re extremely pleased with the tremendous success they’ve achieved to date and this financing round validates their position as a thought leader and innovator in the software development industry.”
Rally is the #1 partner for Agile success through its family of products, coaching and community support. With a dedicated focus on Agile practices, Rally helps organizations of all sizes shorten their development cycles, minimize risk, and collaborate across teams and silos. Rally’s on-demand Agile lifecycle management products were honored with three-time Jolt Product Excellence Awards (the industry’s Oscars) in 2006, 2007 and 2008 and currently support over 360 corporate customers and 18,000 active subscribers in more than 30 countries. Rally’s end-to-end solutions for Agile development also include Agile University, the largest source for Agile training, and Agile Commons, the largest collaborative Web 2.0 community dedicated to advancing software agility. For more information, visit www.rallydev.com.
About MDV-Mohr Davidow Ventures
MDV has been a top-tier Silicon Valley venture capital firm for 25 years. The firm funds and mentors entrepreneurs and young companies redefining business, technology and medicine. MDV invests around three major themes: Driving the Digital World; Powering the Planet; and Personalizing Medicine. The firm takes a hands-on approach to architect and help build successful companies. Investments include: Agile (ORCL); Brocade; Epigram (BRCM); Genius; hi5; Infusionsoft; Medio; Nanosolar; ONI Systems (CIEN); Pacific Biosciences; Proofpoint, Revenue Science, Sabrix; Woven Systems and Visible Measures. The firm has $2 billion under management. For more information visit: www.mdv.com.
About Boulder Ventures
Boulder Ventures, Ltd. invests in start-up, early-stage and emerging-growth companies. BV seeks opportunities in enterprise software, Internet-based business applications and services, information management, and communications infrastructure and services. Corporate offices are located in Owings Mills, MD and Boulder, CO. For more information, visit www.boulderventures.com.
About Mobius Venture Capital
Based in Boulder, Colorado, Mobius Venture Capital manages $1 billion of venture capital investments in companies in the areas of: communications systems software and services; infrastructure software and services; professional services; enterprise applications; healthcare informatics; consumer and small business applications; components; and emerging technologies. For more information on the fund’s investment team and portfolio companies, please visit www.mobiusvc.com.
About Vista Ventures
Vista Ventures, based in Boulder, CO invests in early stage technology companies, primarily in the Rocky Mountain region. The firm focuses its investments on companies in the networking, digital media, and software industries. For more information on Vista Ventures, please visit www.vistavc.com.