The application lifecycle management firm RhodeCode has scored $3.5 million in funding from DFJ Esprit and Earlybird Venture Capital to expand its team and prepare for a major new version.
Berlin-based RhodeCode is an interesting beast. It started off as a fairly straightforward source code management platform to rival GitHub and so on, but it discovered that its customers were largely big enterprises that have no intention of storing their valuable code in the public cloud. So RhodeCode ditched its software-as-a-service version and decided to focus on its behind-the-firewall RhodeCode Enterprise product instead.
It’s not hard to see why RhodeCode’s customers weren’t keen on the public cloud – we’re talking the likes of the U.S. Navy and Department of Energy, arms merchant Raytheon and some very big banks.
CEO Sebastian Kreuzberger (pictured above, with co-founder Marcin Kuzminski on the left) told me that RhodeCode’s popularity among large enterprises was also partly down to the product’s open-source nature. Companies of such scale had started using and adapting it to their needs, so large-enterprise-friendly features such as permission delegation to managers, and the ability for managers to see exactly what each developer is doing, became part of the package.
As was the case last time I spoke to RhodeCode, the product is being used for more than just source code management. Its collaboration and versioning capabilities are also being used by some to provide secure document management, and one big bank is apparently also using it to track versions of its files for compliance with financial authorities’ rules.
This is actually the first major outside investment into the until-now bootstrapped company. As DFJ Esprit’s Gil Dibner wrote in a Tuesday blog post:
Sebastian and Marcin – working entirely alone and without any investment at all – built an incredibly valuable piece of software, built a brand, reached over 100,000 downloads, managed to penetrate world-class organizations such as Cisco, Samsung, Hitachi, CA, Raytheon, and several very large government and military organizations, and even managed to close significant paying enterprise accounts. They did all of this on their own. They didn’t wait for the VC community to understand what they were doing – they just went out and did it. They pivoted and adjusted until it started working.