BOULDER – Local software firm VictorOps Inc. on Wednesday morning announced a $12.2 million Series B funding round that CEO Todd Vernon says will help the fast-growing company achieve profitability over the next two years.
The $12.2 million is actually an initial close on the Series B, which Vernon said will grow in the coming weeks.
Shea Ventures led the new round of funding, with existing investors Foundry Group and Costanoa Venture Capital also participating.
VictorOps, founded in 2012, has raised a little more than $30 million to date.
The company makes a software platform that helps development operations teams at software-as-a-service companies manage and remediate software system alerts and outages in real time. The new funding follows a $10.6 million round raised last year that was an add-on to a Series A financing begun in 2013.
“This money is predominantly for growth,” Vernon said in a phone interview. “We believe we have the product dialed in.”
VictorOps has seen its number of new customers grow by 64 percent in the last year, but the company’s revenue growth isn’t coming just from new customers. The company charges on a per-seat basis, and Vernon said 30 percent of new seats every quarter have been coming from existing customers.
“It’s kind of growth from two different angles, which creates that hockey stick you want to see in a startup,” said Vernon, who declined to disclose specific revenue figures.
VictorOps employs 45 people at its 1401 Pearl St. headquarters. Vernon said he expects to add between 15 and 25 employees in the coming year, primarily in engineering and also sales and marketing.
The funding announcement came on the heels of another unveiling VictorOps’ new Integration Guarantee Program, which aims to take another step toward making life better for the DevOps teams using VictorOps’ product.
VictorOps’ platform aggregates information from multiple monitoring platforms in use by SaaS companies and alerts the DevOps teams of issues that arise. VictorOps’ new guarantee promises that the company’s software will be able to accept data from any monitoring platforms that customers are using.
“The Integration Hub and the Integration Guarantee Program will make it easier for our customers to leverage a wide variety of monitoring and alerting products – including those important to the entire software delivery lifecycle – providing unparalleled access to contextual information for each alert and further streamlining the on-call process regardless of role,” VictorOps vice president of product Joni Klippert said in a news release announcing the integration guarantee.
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