AppDynamics netted $20 million in a new Series C funding round led by new investor Kleiner Perkins Caufield & Byers. Existing backers Greylock Partners and Lightspeed Venture Partners also participated in this round.
The company specializes in application performance management (APM), a subset of broader systems management software, that helps companies monitor and maintain availability of their key software applications.
APM has gotten trickier in this era of web services and cloud computing, where applications are distributed beyond a company’s own data center and get updated frequently. In a statement announcing the funding, Kleiner Perkins partner Matt Murphy said AppDynamics is well positioned to attack this problem.
“Applications are moving to distributed, cloud-based architectures, which is having a tremendous impact on operations and development teams responsible for performance and uptime.”
The new funding augments $5.5 million from a Series A round led by Greylock and Lightspeed in 2008; then another $11 million in Series B by the same two VC firms two years later. Asheem Chandna of Greylock Partners and Ravi Mhatre of Lightspeed led both of those earlier rounds.
APM competitors include legacy software companies like IBM Tivoli, CA Technologies, Compuware, HP and Quest as well as newer players like New Relic.
AppDynamics, which works in both Windows-centric .NET and Java worlds, claims over 50,000 customers including Priceline.com, Netflix, Tivo, Fox News, and Taleo.