Content By Devops .com
e.ventures led investment in Honeycomb’s industry leadership and product innovation, which focuses on observability for modern engineering teams
SAN FRANCISCO, February 2, 2021 – Honeycomb, a provider of observability for distributed systems to understand, debug, and improve production systems, announced today the close of a $20 million Series B round led by e.ventures Growth, with participation from Industry Ventures and existing investors Storm Ventures, Scale Ventures Partners, NextWorld Capital, and Merian Ventures. This round of funding comes as Honeycomb continues to see sustained strong business growth and product innovation, and brings Honeycomb’s total amount of capital raised to $46.9 million.
“We are very pleased Industry Ventures has joined our journey, along with our existing investors, to build an enduring company that developers, DevOps, and Site Reliability Engineering teams both need and trust,” said Christine Yen, CEO of Honeycomb. “With a booming interest in Honeycomb’s solutions, this infusion of capital enables us to accelerate our product roadmap and further our innovative approach to helping customers efficiently manage the performance of complex software at scale. The valuation achieved in this round of investment is reflective of our market leadership and the continued commitment to building upon our industry-defining solutions.”
The recent round of funding comes on the heels of a banner year for Honeycomb, which doubled its business to support over 300 fast-growth companies to date. Designed to handle the scale and complexity of modern architectures, Honeycomb’s offering empowers engineers and their organizations to manage exponential volumes of data where traditional APM solutions routinely fail. The cloud-based offering provides real-time insights that identify optimizations hidden within complex application systems, enables engineering teams to debug systems faster, and helps businesses focus on building superior customer experiences.
Since taking in its last funding round in September 2019, Honeycomb has accomplished significant business milestones, including:
- Adding top industry talent to the leadership bench, including Vice President of Sales, Chad Malchow; Vice President of Engineering, Emily Nakashima; and Vice President of Marketing, Jo Ann Sanders
- Doubling its headcount, with a focus on building out Honeycomb’s Sales and Marketing teams
- Doubling its Annual Recurring Revenue in 2020, with record-setting quarter-over-quarter growth, and closing landmark deals that grew the company’s footprint to more than 300 customers
- Tripling the number of fast-growing enterprise customers like Hello Fresh, Intercom, and Slack, whose digitally enabled business services grew exponentially during the COVID-19 pandemic
- Strengthening its overall customer base with over 150 percent growth across small, mid-market, and enterprise markets by replacing solutions offered by traditional APM vendors, in addition to propelling growth with increased subscription renewals across the largest enterprise customers
- Expanding market traction with large enterprises undergoing aggressive digital transformation initiatives to modernize their infrastructure in industries like financial services
- Offering broader security protection for enterprise customers with solutions like Secure Tenancy, in addition to expanding support and customer success services, and simplifying pricing model and plans and providing a new free usage tier
“When we led the last round, I was impressed with the community leadership, technology, and market opportunity. Just a year later, we are doubling down because they have added to that an efficient go-to-market effort that is exceeding our expectations. They have attracted top-notch executive leadership across the board, from product, developer relations, and engineering, to sales, that is uniquely suited to succeed here. Together, this team understands the observability needs of engineering and operators better than anyone in the industry, and it shows in the incredible product and customer enthusiasm.” – Ariel Tseitlin, Partner, Scale Ventures
“The tremendous results delivered by Honeycomb’s leadership team have given us the confidence to make a rare investment from the growth arm of e.ventures,“ said Thomas Gieselmann, General Partner of e.ventures. “As the de facto observability tool for businesses, Honeycomb’s innovations continue to empower customers with the solutions needed to deliver on the promise of seamless digital experiences. We believe Honeycomb is well positioned and firmly committed to remaining the clear leader within the maturing observability market.”
Honeycomb provides observability for modern development teams to learn, debug, and improve their production systems efficiently so that business-critical apps perform with minimal disruption to users. Honeycomb’s customers rely on the product for fast incident response, system optimization, and delivering pain-free releases across the software engineering cycle that translates to happy devs and happy customers. Learn more at www.honeycomb.io and follow us on Twitter.