Apptio, a Bellevue, Wash.-based enterprise software company, today said it’s raised a $16.5 million Series C round of funding led by Shasta Ventures, which includes participation from current investors Andreessen Horowitz, Greylock Partners and Madrona Venture Group. Apptio raised a $14 million Series B round about a year ago, so to raise that much more funding so quickly after the last round is worth noting.
The Apptio product enables IT to manage the cost and quality of IT services by providing visibility into the costs associated with technology inside a corporation, and the value derived from those expenditures. Products in this sector seek to help IT departments map their IT spend to their business goals; competing products in the on-premise space include IBM’s Maximo product. Apptio’s current user base includes Blue Cross Blue Shield of Kansas, BNP Paribas, Cisco, EMD Chemical and Starbucks.
Commenting on the funding, and in particular the timing around the round, CEO Sunny Gupta said in a release:
We are operating with a very strong cash position, but still received high interest from outside investors which ultimately influenced the timing of this financing round. Customer adoption of our Technology Business Management solutions has doubled, and with this funding we can rapidly accelerate our growth, launch new products and pursue new markets to further cement our leadership in this multi-billion dollar market.
With extreme pressure on corporate IT to provide both transparency over their spend and achieve ever-increasing levels of efficiency, services that help IT leaders gain visibility over their IT resources will become more valuable. One could argue that a solution such as this is more at home as a core part of the organization’s enterprise resource planning system, but so far, Apptio’s on-demand business model and its software are winning customers and keeping the firm’s venture backers ready to give Apptio more cash.
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Ben Kepes is an independent consultant and contributing writer for GigaOM. Please see his disclosure statement in his bio.