Follow The Money: 17 Tech VC Investments In March

Early Spring Green

In the natural world, spring is the time for growth. While growth is certainly an all-season goal in the business world, the onset of spring this year is really bringing out the green of venture capital money to fund some fast-growing IT startups.

Here are 17 startups whose technologies and investments caught our attention in March.


Headquarters: Westborough, Mass.

CEO: Doron Kempel

New Funding: $175 million

Round: Series D

Backers: WayPoint Capital, Accel Partners, Charles River Ventures, DFJ Growth, Meritech Capital Partners, Kleiner Perkins Caufield & Byers

SimpliVity is a leading challenger to established IT vendors in the hot area of hyper-converged IT infrastructure. The company's flagship product, OmniCube, has only been on the market for two years and yet this latest round of funding puts the company's valuation at more than $1 billion.


Headquarters: San Jose, Calif.

CEO: Rehan Jalil

New Funding: $30 million

Round: Series B

Backers: Third Point Ventures, Mayfield Fund, Pelion Venture Partners

As the cloud market continues to grow, Elastica is working to make sure that it's secure and compliant with a "new breed" of cloud app security solutions. The company will use its $30 million in additional funding to expand globally, drive channel sales and grow its technical teams for its CloudSOC platform. The company said it has already seen strong channel growth, landing big-name partners such as Accuvant and NTT Com Security since the launch of its CloudSOC platform last year.


Headquarters: Foster City, Calif.

CEO: Tien Tzuo

New Funding: $115 million

Round: Series F

Backers: Wellington Management Company, BlackRock, Premji, Passport Capital, Benchmark Capital, Greylock, Redpoint Ventures, Index, Shasta, Vulcan, Next World Capital, Workday CEO David Duffield, CEO Marc Benioff

Zuora develops a Software-as-a-Service relationship business management platform that companies with a subscription-based business model use to manage the life cycles of subscriber customers, including recurring billing and payments, revenue recognition and subscription metrics. Zuora describes its product as a new category of software that resides between traditional ERP and CRM applications.

Zuora, founded in 2007, has raised $250 million in venture capital. The company said that in 2014 it recorded 109 percent year-over-year growth in invoice volume running through its systems.

Cohere Technologies

Headquarters: Santa Clara, Calif.

CEO: Shlomo Rakib

New Funding: $35 million

Round: Series C

Backers: Telstra, New Enterprise Associates (NEA), Lightspeed Ventures, Macquarie Capital, AME Cloud Ventures

Wireless connectivity vendor Cohere Technologies received $35 million in new funding in March, which it says it will put toward scaling up the company and bringing new products to market to meet growing wireless network demand. In particular, the company said the new funding would help get its new modulation product, Orthogonal Time Frequency and Space, off the ground, into the market and integrated with new investor Telstra. The new technology specifically helps address the issues of capacity, coverage and cost faced in wireless communications.

Headquarters: San Francisco

CEO: Jeremy Roche

New Funding: $110 million

Round: Series B

Backers: Technology Crossover Ventures, Salesforce Ventures markets cloud ERP applications that it developed on's Salesforce1 Platform. The company, in fact, is closely allied with Salesforce, which is also an investor. FinancialForce will use the new funding to expand all aspects of the business, including product development, sales, marketing, partner alliances and customer support.

In January, the company said its subscription run-rate grew by 91 percent in 2014, bringing its annual revenue run-rate to $50 million. While the company sells its service directly, about 80 percent of deals involve a partner such as Bluewolf or Centerstance.

Day1 Solutions

Headquarters: McLean, Va.

CEO: Luis Benavides

New Funding: $2 million

Round: Seed Capital

Backers: Undisclosed

In a funding win for the channel, cloud services and solutions provider Day1 Solutions landed $2 million in initial seed capital to put toward investments in acquisitions, and expanded technical and sales headcount. The funding comes as Day1 continues a period of hypergrowth, with revenue jumping more than 1,600 percent last year.

"This funding is a testament to our investors' confidence in Day1 Solutions' leadership team, business model and ability to consistently deliver an exceptional cloud experience to a rapidly growing base of enterprise customers moving mission-critical IT operations to the cloud," CEO Luis Benavides said in a statement.


Headquarters: Mountain View, Calif.

CEO: Gary Meyers

New Funding: $12 million

Round: Series B

Backers: New Enterprise Associates, Series A investors

FusionOps develops cloud-based supply-chain analytics software that can analyze huge amounts of real-time transactional data with the goal of decreasing costs, growing revenue and improving customer service. The company will use the new financing to accelerate product development and continue its global expansion, especially across multiple vertical industries.

The FusionOps tools can be accessed directly through and are also integrated with Oracle's Enterprise Business Suite ERP applications.

Solebit LABS

Headquarters: Tel Aviv, Israel

CEO: Boris Vaynberg

New Funding: $2 million

Round: Seed Capital

Backers: Glilot Capital Partners

Solebit LABS has landed $2 million in funding for its cybersecurity software to help enterprise customers battle advanced threats and zero-day attacks by examining all files and objects before they enter a company's network. This is especially important, the vendor said, as 38 percent of enterprises still don't have the technology to detect advanced threats. The company will use the new funding to expand product development, as well as increase its sales and marketing efforts.

Headquarters: Provo, Utah

CEO: Dave Elkington

New Funding: $60 million

Round: Series D

Backers: Salesforce Ventures, Microsoft, Polaris Partners, Hummer Winblad, U.S. Venture Partners, Epic Ventures, Zetta Venture Partners, Kleiner Perkins Caufield & Byers markets a sales acceleration platform that's built on the company's Neuralytics "predictive and prescriptive self-learning engine." The platform's communications, gamification, predictive analytics and data-visualization tools are designed to boost sales representative performance.

The company plans to use the additional financing to expand its international operations and boost sales to enterprise customers.


Headquarters: Mountain View, Calif.

CEO: Barry O'Sullivan

New Funding: $2 million

Round: Seed Round

Backers: Delta Partners, Digicel Group, ACT Venture Capital, Enterprise Ireland, Western Development Commission

Altocloud exited stealth mode in March with its cloud-based predictive communications platform and announced it had raised $2 million in additional seed funding, bringing the company's total financing to $3 million. Altocloud's software looks to bridge the gap between marketing data and communications with customers, improving customer sales and engagement. CEO Barry O'Sullivan led Cisco's unified communications, contact center, VoIP and WebEx businesses as senior vice president until February of last year.


Headquarters: Redwood City, Calif.

CEO: Satyen Sangani

New Funding: $9 million

Round: Series A

Backers: Costanoa Venture Capital, Data Collective Venture Capital, Andreessen Horowitz, Bloomberg Beta, General Catalyst Partners, several individual investors

Alation came out of stealth mode on March 31, debuting its data-accessibility technology that's designed to help people more easily find, understand, use and govern their data for making better and faster decisions.

Alation said its platform is already in use by a number of customers, including eBay, MarketShare and Inflection. The company will use the new funding to accelerate product development and to expand its sales and marketing efforts.


Headquarters: San Francisco

CEO: Tawheed Kader

New Funding: $15 million

Round: Series B

Backers: Andreessen Horowitz, Sigma West, Founder Collective, Launch Fund, 500 Startups

As the company closed out a year of astronomical growth, seeing a 300 percent jump in top-line revenue, ToutApp landed $15 million in funding to continue its momentum in sales, marketing and engineering for its CRM and email productivity platform. The funding adds to the $3.35 million raised in 2013. The ultimate goal of the funding, CEO Tawheed Kader said in a blog post about the news, is to establish ToutApp as the "Bloomberg terminal for sales people" by building a platform that understands the salesperson's job and helps enable them to be more effective.


Headquarters: Milpitas, Calif.

CEO: Ajit Gupta

New Funding: $16 million

Round: Series E

Backers: Nexus Venture Partners, Trinity Ventures, InterWest Partners, Mohr Davidow Ventures, Presidio Ventures.

Aryaka is a WAN-as-a-Service provider with its Aryaka ONE platform that's able to connect geographically dispersed offices and provide application-delivery and cloud-network services. Aryaka's network and application acceleration services bypass the public Internet, which the company said results in faster, more secure and more stable services.

The company will use the new funding to scale up its global sales infrastructure to meet what it described as the growing demand for its services.


Headquarters: San Francisco

CEO: Jon Lee

New Funding: $7.5 million

Round: Series A

Backers: True Ventures, Bloomberg Beta, CrunchFund, angel investors

ProsperWorks has received $7.5 million to put toward continued development of its Simple CRM for Google Apps solution, which aims to improve CRM efficiencies by focusing everything around the Google Apps ecosystem. In particular, it adds Chrome extensions for Gmail, zero-touch data entry, task synchronization with Google Calendar, business intelligence and more. The latest round of funding brings the company's total financing to $10 million.


Headquarters: Atlanta

CEO: Carol O'Kelley

New Funding: $5 million

Round: Undisclosed

Backers: Noro-Moseley

Salesfusion develops a marketing-automation platform for midsize companies conducting B2B sales. The software is integrated with CRM applications from, Microsoft, Sugar and others. The company will use the funding to accelerate product development and expand its client services organization.

Also in March, Salesfusion named Carol O'Kelley as its new CEO. She was previously executive vice president and chief marketing officer at RedPrairie, and before that served as vice president and chief of staff in Oracle's global retail business unit.


Headquarters: San Francisco

CEO: Matt Cooper

New Funding: $3.3 million

Round: Series A

Backers: Crosslink Capital, SoftTech VC, Kapor Capital, 500 Startups

Visually develops cloud-based content creation and collaboration tools for developing interactive graphics, video and other visual content. The company will use the financing to expand its creative services offerings.


Headquarters: Mt. Laurel, N.J.

CEO: Russ Hawkins

New Funding: $4.3 million

Round: Venture

Backers: Laurel Capital Partners, Drayton Park Capital, Granite Ventures, Next Stage Capital, Aster Capital

Agilence develops the Retail 20/20 Software-as-a-Service applications that provide retailers with visibility into their daily store operations, including reducing fraud and loss, and improving operational efficiencies. The company will use the funding to continue developing Retail 20/20's exception reporting and operational intelligence capabilities. The additional money also will be used to support the vendor's rapid growth, the company said.