Raleigh’s Pendo: A Best Late Stage Tech Company In the Universe

According to the investor fueling Pendo’s $25 million Series C, announced today, the four-year-old product management software startup from Raleigh is “one of the best late stage tech companies in the universe.”

From its website, Meritech Capital Partners of Palo Alto is pretty clear about its ambitions. It’s not looking for seed deals or raising billion plus dollar funds. The fund run by six partners all with deep experience running companies or in investment banking wants only to place bets on companies it believes can have the next big technology IPO.

That means the team works fast to get its money in the right place.

So fast, that negotiations with Pendo began around the first week in June, when I shared a cab with Pendo CEO Todd Olson on our way to the 3686 South conference in Nashville.

While Olson didn’t share any specifics around his fundraising efforts, he made it pretty clear that raising capital was no problem and in fact, it’s coming in even faster than planned.

PENDO SECURES $25M SERIES C FUNDING LED BY MERITECH CAPITAL PARTNERS

RALEIGH, NC – (Marketwire – July 13, 2017) – Pendo today announced it has raised $25 million in Series C financing led by Meritech Capital Partners. The round includes additional participation from existing investors Battery Ventures, Contour Venture Partners, Core Capital Partners, IDEAFund Partners, Salesforce Ventures and Spark Capital. In addition, Meritech Capital Partners’ General Partner Rob Ward will join Pendo’s board of directors. Pendo has raised $56 million to date — $45 million in the last six months.

Pendo is a platform that helps companies deliver exceptional customer experiences in their products. In 2016, Pendo’s revenues more than quadrupled and its customer base grew to hundreds of leading software companies including Citrix, Coupa, Gainsight, Henry Schein, Infor and Optimizely. Pendo now tracks over 20 billion user actions and improves the product experience of over 22 million users every month.

The new funding will be used to scale Pendo’s engineering team as well as make strategic investments to accelerate growth. Additionally, Pendo is announcing new offices in New York and San Francisco to better serve its customer base.

“In the past decade we’ve seen software disrupt and transform industries and job roles over and over again. Today, all successful companies need to be in the software business, and all of them need to care about their product experience,” said Meritech General Partner Rob Ward. “At Meritech we seek category-defining companies, and Pendo is well on its way to becoming a market leader as evidenced by its fast growth and incredibly enthusiastic customers.”

“Our software has to serve a number of different roles in each practice,” said Bradley LaFave, Product Marketing Manager at WebPT, an electronic medical record (EMR) platform for the physical therapy industry. “As a SaaS product without contracts, we have to show value everyday to our Members to maintain our over 99% retention rate. This is where Pendo comes in. Pendo helps us truly understand and improve the experience we deliver to each of the different roles in our product. It should be an essential part of every company’s technology infrastructure.”

“Experience is no longer a nice-to-have for software products, we see an enormous opportunity to help companies improve their product experiences,” said Todd Olson, Chief Executive Officer at Pendo. “We are excited to partner with Meritech Capital Partners who will enable us to invest more aggressively and realize our potential.”

About Pendo
Pendo was founded in 2013 by former product managers that have experienced the joys and challenges of creating great products at companies like Cisco, Google, Rally, and Red Hat, among others. With a powerful analytics and guidance platform designed to help companies understand and influence how users interact with their software applications, Pendo is on a mission to improve society’s experiences with software. For more information, visit: www.pendo.io.

About Meritech Capital Partners
Meritech Capital Partners is a leading provider of growth stage venture capital to category-defining private technology companies, and has been one of the top performing venture firms of the past two decades. With over $3 billion under management, Meritech primarily leads investments into companies with proven and differentiated technology, rapidly-growing revenue and experienced management teams. Meritech investments in industry-leading companies include Alteryx, Anaplan, Box, Cloudera, Coupa, Datadog, Facebook, Fortinet, Fusion-io, Greenplum, Hybris, Looker, Mulesoft, Netezza, NetSuite, Proofpoint, PopCap, Riverbed, Roblox, Snap, Tableau and Zulily. Meritech is located in Palo Alto, CA and can be found at www.meritechcapital.com.

Salesforce Ventures
Salesforce is the fastest growing top five enterprise software company and the #1 CRM provider globally. Salesforce Ventures—the company’s corporate investment group—invests in the next generation of enterprise technology that extends the power of the Salesforce Intelligent Customer Success Platform, helping companies connect with their customers in entirely new ways. Portfolio companies receive funding as well as access to the world’s largest cloud ecosystem and the guidance of Salesforce’s innovators and executives. With Salesforce Ventures, portfolio companies can also leverage Salesforce’s expertise in corporate philanthropy by joining Pledge 1% to make giving back part of their business model. Salesforce Ventures has invested in more than 200 enterprise cloud startups in 14 different countries since 2009. For more information, please visit www.salesforce.com/ventures

Pendo Closes $25M Series C from Meritech to Scale its Customer Understanding Platform

Just seven months after announcing a $20 million Series B, Pendo, a platform to help businesses better understand their customers, has closed a new $25 million Series C led by Meritech Capital Partners. The North Carolina-based startup has been growing at a rapid clip — ballooning to 106 employees across offices in San Francisco, New York and Raleigh. Meritech’s Rob Ward will be joining the Pendo board of directors to help guide future acquisitions and an international expansion strategy.

Pendo is a tool that companies can use to track key customer metrics to better understand how users engage with products and services. The company is orienting itself around the rise in interest in satisfaction metrics like net promoter scores (likelihood to recommend products to others) that often are used as a proxy for projecting revenue.

Inside a HQ Charlotte Pitch Event that Put Local Entrepreneurs in the Spotlight

HQ Charlotte at Packard Place was buzzing with entrepreneurs early Wednesday morning.

The Raleigh-based coworking company hosts an event called PitchBreakfast every second Wednesday of the month to give local entrepreneurs an opportunity to practice their pitch to a panel of investors.

Among the panelists this week were Chris Halligan, operating partner of IDEA Fund Partners and COO of Payzer; Seth Twery, founder and CEO of Teton Ventures and limited partner of IDEA Fund Partners; and Greg Brown, owner of Cardinal Finance and Charlotte Angel Fund’s administrator.

The event followed the IDEA Fund format where companies present without slides for two minutes and then receive 15 minutes of feedback from the panelists. React Innovations, Fridge Coaster and CounteractIO were the three companies that presented Wednesday.