Digital Optimization Tech Developer Amplitude Raises $150M Funding
New financing comes on the heels of 50 percent revenue growth in fiscal 2020, recent product introductions and an acquisition.
Amplitude, developer of a digital optimization system for analyzing digital product customer and sales data, has raised $150 million in a Series F round of financing that brings the company’s total funding to $336 million and its pre-money valuation to $4 billion.
The funding round was led by Sequoia Capital with participation from other existing investors GIC, Battery Ventures and IVP.
“Our latest funding round speaks directly to digital innovation as the new competitive frontier, and the central role Amplitude plays in the new digital economy,” said Spenser Skates, Amplitude co-founder and CEO, in a statement.
Amplitude, based in San Francisco develops a series of software called the Digital Optimization System used to collect, manage and analyze data about a company’s digital products and services, customer interactions and sales. Amplitude’s software is used by marketing and product development teams to better understand customer behavior around digital products and improve business outcomes.
The company’s Amplitude Behavior Graph, for example, uses a native query engine and machine learning to analyze and correlate customer actions across digital products, and understand and predict which behaviors increase customer engagement, retention and loyalty.
Amplitude Recommend, just released in April, is a self-service personalization engine, also powered by machine learning, product analysis capabilities and customer behavior data, that provides online customers with personalized experiences.
Just last week Amplitude introduced Amplitude Experiment, software used to devise and deliver workflows based on customer behavior data.
“The winning companies in this era have three things in common: They are leaning into digital-first as a business strategy, they are the disruptors and leaders in their respective industries, and they rely on Amplitude to help them create value and differentiation,” Skates said.
“In a digital world, the product is the business. Companies that can‘t connect the product to business outcomes will be left behind,” said Pat Grady, a Sequoia partner and Amplitude board member, in a statement. “Amplitude is the gold standard for optimizing digital businesses, and we’re excited to support them in their mission to help every company build better digital products.”
Amplitude, founded in 2012, said it recorded 50 percent year-over-year revenue growth in its fiscal 2020. Amplitude added 400 new customers during the year, the company said, with its software being used by 20 percent of the Fortune 500 and 15 customers generating revenue of $1 million or more.
Amplitude works with solution provider partners, including Slalom and WWT Digital, who develop practices around selling and implementing Amplitude, as well as with referral and technology partners.
In May Amplitude acquired Iteratively, a developer of data planning and instrumentation technology that will be incorporated into Amplitude’s offerings to help digital teams manage and improve data quality across their analytics and personalization solutions.