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AppDynamics Raised $50 Million in 2013: Who Invested and Why

AppDynamics’ January 2013 Series D brought in $50 million, led by IVP, to support enterprise expansion, product development and hiring.
From TheFinanceBase Team2 min to read
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AppDynamics announced a $50 million Series D financing round on January 23, 2013. Institutional Venture Partners (IVP) led the round, joined by existing investors Greylock Partners, Kleiner Perkins Caufield & Byers, and Lightspeed Venture Partners. The company said it would use the capital to expand its enterprise business globally, increase research and development, and hire more employees.

Who invested in AppDynamics’ Series D?

IVP was the new lead investor. Greylock Partners, Kleiner Perkins Caufield & Byers, and Lightspeed Venture Partners also participated. AppDynamics announced the financing on January 23, 2013. AppDynamics’ announcement described the investment as a $50 million growth round.

What did AppDynamics plan to do with the $50 million?

The company said it would put the funding toward three priorities:

  • Expanding its enterprise business internationally.
  • Increasing research and development.
  • Accelerating hiring.

AppDynamics sold application-performance-management (APM) software, designed to monitor complex, business-critical applications. The company linked the fundraising to rising demand from organizations seeking an APM platform that could scale with their growth.

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What growth did AppDynamics report in 2013?

In its January 2013 announcement, AppDynamics said it had achieved 300% compound annual growth over the previous two years and employed more than 200 people worldwide. Those are company-reported figures for that period, not independently verified measures of later performance.

AppDynamics also said its Pro product monitored more than 51 billion transactions per day across customers. That figure describes the scale the company reported for its product at the time; it is not a measure of revenue or a comparison with other APM providers.

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In May 2013, AppDynamics reported 142% first-quarter revenue growth and 13 consecutive quarters of sequential growth. These figures were also reported by the company. Its May release did not turn the earlier fundraising into an IPO outcome.

How much had AppDynamics raised in total, and did it go public?

After the Series D, TechCrunch reported that AppDynamics had raised $86.5 million in total and described an IPO as a plan at the time. That January 2013 report is evidence of a contemporaneous intention, not proof that an IPO happened. AppDynamics was acquired by Cisco in 2017 rather than completing the IPO plan described in that coverage.

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Who acquired AppDynamics?

Cisco announced a planned acquisition of AppDynamics for approximately $3.7 billion in January 2017 and completed the acquisition in March 2017. Cisco’s announcements document the proposed deal and its completion: the January announcement and the March completion notice.

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