Zuora has successfully raised $242.5 million over seven funding rounds, achieving a valuation of $1.4 billion. The company is set to be acquired by Silver Lake and GIC, marking a significant milestone in its financial journey.
Keep reading to explore the intricacies of Zuora's fundraising journey and the investors backing this innovative platform.
What Is Zuora?
Zuora, founded by K. V. Rao and Tien Tzuo, is a cloud-based software company that enables businesses to transition to subscription models. Established in 2007, the company is headquartered in Redwood City, California.
Zuora's platform automates the entire subscription order-to-cash process, including billing and revenue recognition, making it easier for companies to manage recurring revenue. The company has grown significantly and now employs between 501-1000 people.
With a mission to support the Subscription Economy, Zuora has become a leader in subscription and monetization solutions, helping businesses across various industries to thrive in a recurring revenue model.
How Much Funding Has Zuora Raised?
- Series C Funding Round
- Amount Raised: $20 million
- Date: November 9, 2010
- Lead Investors: Redpoint Ventures
- Motivation Behind the Round: To grow operations in the U.S. and EMEA, accelerate entry into new markets, and expand the portfolio of industry-specific solutions.
- Series D Funding Round
- Amount Raised: $36 million
- Date: November 16, 2011
- Lead Investors: Index Ventures, Greylock Partners
- Valuation at Round: Above $300 million but below $500 million
- Motivation Behind the Round: To support aggressive international expansion and invest in core research and product development.
- Series E Funding Round
- Amount Raised: $50 million
- Date: September 5, 2013
- Lead Investors: Next World Capital, Vulcan Capital, Northgate Capital
- Motivation Behind the Round: To help companies transition to subscription-based models, manage the challenges of new monetization structures, and support international expansion.
- Series F Funding Round
- Amount Raised: $115 million
- Date: March 11, 2015
- Motivation Behind the Round: To target the 'subscription economy' and support the company's growth.
- Initial Public Offering (IPO)
- Amount Raised: $154 million
- Date: April 11, 2018
- Valuation at Round: $1.44 billion
- Motivation Behind the Round: To go public and raise capital to support growth and operations.
Total Amount Raised: $375 million. Current Valuation: $1.44 billion.
Key Investors
- Redpoint Ventures
- Details: Redpoint Ventures is a venture capital firm that invests in seed, early, and growth-stage companies. Tim Haley, Founding Partner, joined Zuora's board of directors.
- Investment Focus Areas: Early-stage technology companies, consumer internet, enterprise software.
- Notable Investments: Netflix, Stripe, Twilio.
- Benchmark Capital
- Details: Benchmark Capital is a venture capital firm that invests in early-stage startups, particularly in technology. Peter Fenton, partner at Benchmark Capital, is on Zuora's board of directors.
- Investment Focus Areas: Early-stage startups, technology, consumer internet.
- Notable Investments: Uber, Twitter, Dropbox.
- Marc Benioff
- Details: Marc Benioff is the co-founder and CEO of Salesforce, a cloud-based software company. He is known for his investments in cloud computing and enterprise software.
- Investment Focus Areas: Cloud computing, enterprise software, technology.
- Notable Investments: Salesforce, Twilio, DocuSign.
- Shasta Ventures
- Details: Shasta Ventures is a venture capital firm focused on early-stage consumer and enterprise technology companies. Jason Pressman, partner at Shasta Ventures, is on Zuora's board of directors.
- Investment Focus Areas: Early-stage consumer technology, enterprise technology, SaaS.
- Notable Investments: Anaplan, Nextdoor, Zuora.
- Tenaya Capital
- Details: Tenaya Capital is a venture capital firm that invests in growth-stage technology companies. They have been an existing shareholder in Zuora.
- Investment Focus Areas: Growth-stage technology companies, enterprise software, SaaS.
- Notable Investments: HubSpot, Palo Alto Networks, Zuora.
What's Next for Zuora?
Zuora stands at the cusp of significant opportunities, driven by the growing shift towards subscription-based business models. With a successful IPO and substantial funding rounds, the company is well-positioned to expand its customer base and enhance its platform. The subscription economy is booming, and Zuora's expertise in billing and analytics systems places it at the forefront of this transformation.
Future fundraising opportunities appear promising, given the investor confidence demonstrated in previous rounds. Zuora could leverage its public status for additional stock offerings or strategic acquisitions to broaden its service offerings. However, the company must navigate challenges such as competition from established players like Oracle and SAP, and the need to continuously innovate to stay ahead in the rapidly evolving market.
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