CloudBees secures $11.2m series C funding, strengthens Verizon play
PaaS provider CloudBees has secured series C funding to the tune of $11.2m (£6.7m), in a round of investment led by Verizon Ventures.
The latest round puts the total investment at $25.7m (£15.4m), with Verizon joining existing investors Matrix Partners and LightSpeed Venture Partners, as well as new investor Blue Cloud Ventures.
According to CloudBees CEO Sacha Labourey, the money will be used in two capacities – increasing go-to-market capability in different geographies, as well as further investment in the product, with particular focus on its enterprise product, Jenkins.
“We are getting great traction especially around Jenkins, and there is demand from large organisations to scale their environment and help us get more efficient at managing big companies’ delivery environment,” he told CloudTech.
According to Labourey, the enterprise expertise only plays a small part in what makes CloudBees appealing to the venture capitalists.
“A lot of the PaaS out there is very much focused on these [enterprise] applications,” he explained. “We do understand what enterprises are looking for, and that’s an interesting piece of the market.
“We have a unique feature set, so we cover the complete app lifecycle – that’s very much appreciated,” he continued. “This continuity we’ve seen is something that really interests people above and beyond just the technical aspect, it’s really a transformative process through that company.”
Throw in a talented crew – “investors look at teams before they invest”, as Labourey said – and you’ve got an extremely talented funding proposition.
Regular followers of the industry would have acknowledged the role of Verizon Ventures in all this. The lead partner in the series C round, Verizon and CloudBees announced a partnership last month, with the CloudBees PaaS fitting into Verizon Cloud.
Labourey notes the serendipitous nature of the relationship with the telco’s investment branch.
“It’s interesting how it played out,” he said. “We started having discussions with Verizon Cloud quite a while ago, and it took time for Verizon to implement their new cloud strategy.
“As we worked through the partnership we started to work on our fundraising, and that’s when Verizon asked us whether it would make sense for me to get introduced to their venture arm,” he added. “They took this opportunity to meet with us as a normal venture opportunity.
“From that time on the discussion with Verizon Venture was not related to the partnership any more, but strictly focused on the venture deal.”
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