RALEIGH – Pendo, the fast-growing product management software firm that was labeled as one of 10 startups outside Silicon Valley in 2018 by VentureBeat, is making big news today with $50 million in venture capital funding with a Valley investor leading the round.
In fact, investors were lined up to participate in the Series D round with Pendo raising more money than planned in an over-subscribed round, according to a spokesperson for the company.
“We’ve established a solid presence in the B2B [business-to-busiess] SaaS [software as a serivce] market by focusing on what product teams need to deliver digital products that delight users,” said Todd Olson, CEO and co-founder of Pendo, which launched in 2013.
“As Pendo has evolved, we’ve recognized that virtually every company is now in the software business. This funding will help us accelerate our growth within and well beyond SaaS, where Pendo becomes the preferred platform for product teams in any native digital enterprise, as well as traditional enterprises undergoing a digital transformation.”
Silicon Valley-based Sapphire Ventures led the latest round of funding.
“Sapphire’s mission is to help build companies of consequence, and Pendo is certainly on track to achieve that distinction with its powerful platform used by individuals across functions,” said Rajeev Dham, partner at Sapphire Ventures, in the announcement.
“We see a massive opportunity for Pendo to help any business with digital services develop better products that foster superior user experiences, the ultimate differentiator in digital today. We’re excited to partner with Todd and the world-class team at Pendo for this next stage of growth.”
Pendo’s revenue compound annual growth rate over the last three years is 289 percent, according to the company.
With the cash, Pendo plans to expand its offerings into Europe and Asia while to its sales, marketing as well as research and development efforts. It also wants to expand its reach into various enterprise markets where demand for Pendo-type services is rising, Pendo said, citing independent research.
Jobs continue to be available at Pendo with 16 positions – all in Raleigh – currently listed at its LinkedIn site.
Pendo is one of several North Carolina-based software companies to raise $50 million or more so far this year, including Raleigh-based PrecisionHawk and Wilmington-based nCino.
Just a year ago, Pendo raised $25 million after landing $20 million in December 2016.
The company declined to disclose what valuation the latest funding would be, although it could be on its way to “unicorn” status at $1 billion or more.
Pendo has now raised more than $100 million to support its drive continuing growth, and plans to double headcount this year are well underway with the spokesperson saying it has 228 employees with 161 of those based in Raleigh.
In 2017 Pendo really hit its stride, doubling the number of customers. That momentum has carried over into 2018.
Pendo utilizes the clod to help clients design and deliver products for customers with an emphasis on improving customer satisfaction.
Other investors in the round included new investors:
- Geodesic Capital
- FirstMark Capital
And existing investors:
- Battery Ventures
- Spark Capital
- Meritech Capital
- Contour Venture Partners
Pendo now has more than 600 clients, including LexiNexis, BMC and Zendesk.