Harness, the startup that wants to make every company a suite of engineering tools for technology outreach that the largest companies have, announced the $ 85 million series today at a valuation of $ 1.7 billion.
Today’s round comes after the 2019 $ 60 million Series B, which had a valuation of $ 500 million, causing a company to rapidly raise value. For the company launched just three years ago, this is a fairly remarkable trajectory.
Alken Capital led the round with the help of new investors Battery Ventures, City Ventures, Northwest Venture Partners, Sorenson Capital and Thomvest Ventures. The startup also revealed the first $ 30 million B-1 round raised after the $ 60 million round, raising the total to $ 195 million.
Jyoti Bansal, the company’s founder and CEO, first founded AppDynamics, which he sold to Cisco in 2017 for $ 3.7 billion. With his track record, investors came looking for him in this era. It did not hurt that revenue grew nearly 3x last year.
“The business is doing very well, so the investor community is constantly reaching out and trying to invest in us. We were not really planning to raise a round by the end of this year. We had enough capital through it, but a lot of people wanted to invest, ”Bansal told me.
In fact, he said that there was so much investor interest that he could raise twice as much, but did not feel the need to take that capital at this time. “Overall, the investor community sees developer tools and value in the DevOps market. There are now many large public companies in that space which have been out in the last three to five years and this has definitely given more validation to the place, ”he said.
Bansal says he started with the goal of making every company as good as Google or Facebook when it came to engineering proficiency. Since most companies lack the engineering resources of these large companies, it is a long task, but she thinks she can solve it through software.
The company began manufacturing a continuous delivery module. A cloud cost efficiency module followed. Last year the company bought open source continuous integration company Drone.io and they are currently working in the platform. According to Bansal, there are additional modules on the product roadmap coming this year.
As the company continued to increase revenue and build the platform in 2020, it also increased the number of new employees, rising from 200 to 300 during the epidemic. Bansal says that he plans to add another 200 by the end of this year. Harness has a reputation for being a good place to work, most recently to land on Glassdoor’s list of the best companies.
As an experienced entrepreneur, Bansal builds a diverse company with a welcoming culture. “Yes, you have to provide equal opportunities and make sure that you are open to hiring people from diverse backgrounds, but you have to be more proactive about that you have to make sure that your company’s environment and company The culture feels very welcoming to everyone, he said.
It has been a difficult time to build a company during the epidemic to find a way to add so many new employees, and to welcome and involve all. Bansal says that he has actually seen an increase in productivity during the epidemic, but now the employee has to avoid burns.
He says that people did not know how to draw boundaries while working at home. One of the things he did was to start a Friday giving program to recharge it. The company has also recently announced that it will be the post-COVID work of the company ‘from anywhere’, but Bansal is still planning to have a regional office where people can meet if needed.