Category: Software

Rally Software reports 26 percent jump in first-quarter revenue

BOULDER — Rally Software Development Corp. (NYSE: RALY) on Thursday reported a 26 percent bump in revenue in the first quarter of its fiscal year 2016 vs. a year earlier.

The numbers reflect the period ending April 30 for the Boulder-based company.

New York-based software firm CA Technologies (Nasdaq: CA) announced last week that it was purchasing Rally for $480 million. In the wake of the deal, the company opted not to hold its previously scheduled conference call to discuss first-quarter financials and canceled its Analyst Day slated for June 16.

Rally provides businesses with Agile development software and services.

The company reported first-quarter revenue of $24.5 million, up from $19.4 million a year earlier. Net loss narrowed from $8.5 million, or 34 cents per share last year, to $6.9 million, or 27 cents per share, this year.

CA’s purchase of Rally is expected to close in the third quarter of calendar year 2015.

Boulder startup Native wins CSU Blue Ocean Enterprises Challenge college division

FORT COLLINS — Boulder startup Native, founded by University of Colorado students, won the college division of the CSU Blue Ocean Enterprises Challenge on Wednesday, taking home $20,000 in cash and qualifying for a spot in the $250,000 enterprise division of the competition to be held Friday and Saturday.

Native makes an app that offers personal travel assistants for as little as $25 per month who plan, book and handle travel details for users. The assistants coordinate flights, lodging, dining and rental cars by texting travel arrangements to customers’ phones.

In addition to the cash prize, Native also won a package that includes business mentoring from Blue Ocean Enterprises, software tools and professional services.

Native was founded early last year by Devon Tivona, Sam Feisenthal and Lianne Haug before going through the Techstars Boulder startup accelerator.

“This has been an overwhelming experience,” Tivona said in a release from CSU. “It’s a huge validation to us that others believe in us.”

Change Composites, founded by Colorado State University graduate student Nate Saam, took second place in Wednesday’s competition, winning $5,000. Change Composites has designed a new bicycle helmet using a shock-absorbing composite material developed by the company.

The competition was held at Colorado State University’s Lory Student Center, and included 12 teams from colleges around the state. Native and 15 other startups will compete for the $250,000 grand prize.

CA Technologies acquiring Boulder-based Rally Software for $480M

BOULDER – New York-based software firm CA Technologies (Nasdaq: CA) announced Wednesday afternoon that it has inked a deal to acquire Boulder-based Rally Software Development Corp. for $480 million.

Tim Miller

Tim Miller

Ryan Martens

Ryan Martens

The price works to about $19.50 per share for Rally (NYSE: RALY), a 44 percent premium on Wednesday’s closing price. Shares closed at $13.51 Wednesday but shot up to $19.22 per share in after-hours trading in the wake of CA’s announcement. CA shares remained flat.

Both companies’ boards of directors have approved the deal, which is expected to close in the second quarter of CA’s 2016 fiscal year, which is the third quarter of calendar year 2015.

In an email, Rally chairman and CEO Tim Miller stated that Rally is expected to operate as part of CA once the deal closes, and added that he expects Rally’s management team “will continue to run the business and report into senior executives at CA.”

Rally is headquartered at 3333 Walnut St. in Boulder and also has an office in Denver, with about 280 employees total in Colorado.

“We anticipate that Rally employees will be needed in their current work locations, including our Boulder and Denver offices,” Miller stated.

Rally, founded by current chief technology officer Ryan Martens in 2001 as F4 Technologies Inc., went public in 2013 with a $97 million initial public offering. The company, which provides Agile development software and services, has about 500 employees spread across four continents. The company finished its own 2015 fiscal year that ended Jan. 31 with sales of $88 million. CA reported $4.3 billion in sales in fiscal year 2015.

“Rally is a leading provider of Agile development software and services, with offerings that complement and expand CA’s strengths in the areas of DevOps and Management Cloud,” CA CEO Mike Gregoire said in a press release. “Every developer dreams of creating truly transformative software that responds to a business challenge extremely quickly. Joining forces with Rally makes this dream a possibility for millions of developers worldwide, and in turn opens up the possibility of a whole new range of experiences driven by software.”

CA Technologies, which has 11,500 employees worldwide, already has a presence in Colorado, with just more than 300 employees in the state at offices in Fort Collins, Englewood and Colorado Springs.

“CA and Rally have more than four years of history working together, and we are thrilled to be taking this next step in our relationship to deliver unique value to both CA and Rally customers,” Miller said in the press release.

2 NoCo teams win $25,000 each at Go Code Colorado civic app challenge

A pair of Northern Colorado-based teams won $25,000 contracts with the state as top-three finishers Go Code Colorado civic app challenge in Denver on Thursday.

The top three finishers of the nine finalists competing earned the year-long contracts to help them build out their apps.

Co Code Colorado is run by the Colorado Secretary of State’s Office, and charges developers and entrepreneurs to make use of public data to solve business problems.

A Fort Collins team won last year’s challenge, and the region was represented well again this year.

Stay CO, created by a Fort Collins-based team, is an incentive-based mobile app designed to encourage and validate responsible and environmentally friendly commuting behavior, reducing traffic by analyzing, predicting and promoting ways to change commuting patterns while incentivizing commuters with perks from local businesses.

Pikr Knows, meanwhile, was also built by a Fort Collins-based group that included members from Loveland and Broomfield. Pikr is a Colorado tourism app that suggests activities based on user preferences, helping businesses learn how they might adjust their business models and offerings to maximize revenue.

The third winner of a $25,000 contract this year was Denver-based Mentor Matters, an app that connects college and university students with volunteer industry mentors to improve recruiting and increase new-hire retention.

Boulder-based VictorOps raises $2.6 million in new funding

BOULDER – Local startup VictorOps Inc. has raised a new $2.6 million round of funding to keep building out its sales team as the company works toward raising a larger Series B round in the fall.

The Boulder-based company disclosed the funding in a filing with the Securities and Exchange Commission on Friday.

VictorOps co-founder and chief executive Todd Vernon said in a phone interview Monday that the funding round is in the form of convertible debt that will convert to equity once the Series B is raised. Vernon said all previous investors, which include Costanoa Venture Capital and Boulder-based Foundry Group, participated in the most recent round along with management.

Founded in 2012, VictorOps 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 company launched the platform early last year and until the first quarter of this year had been relying solely on inbound sales leads. The company launched a sales team in the first quarter this year with five new hires. Vernon expects to add five more people to the team in the second quarter.

Vernon declined to disclose specific revenue figures but said the company’s sales have been growing 100 percent quarter over quarter, with a number of Fortune 500 companies coming on as clients in the first three months of this year.

“It was pretty clear to us we had the right product and the right market,” Vernon said. “We could have raised a full round now, but we think it’s going to be a lot more favorable in the fall” in terms of valuation of the company.

VictorOps raised a $6.5 million Series A round of funding in 2013 that was led by Costanoa. Foundry Group, which also participated in the Series A, led VictorOps’ $1.6 million seed round in 2012.

Following the Series A, VictorOps expanded into an 8,000-square-foot space that it now calls home at 1401 Pearl St., above The Cheesecake Factory on the Pearl Street Mall. The company has 35 employees, having added about 15 over the past year. Part of that space, Vernon said, has been subleased out to another company that will be leaving in August just as VictorOps’ growth necessitates the extra room.

Louisville startup making shift toward email security with ThreatWave

LOUISVILLE – Switch Labs Inc., the Louisville startup doing business the past two years as, has quietly undergone a major transition in recent months with a change in leadership and shift in primary focus toward email security.

The company, whose focus has been on improving the bounced email experience for end users, recently raised a new $2.2 million funding round for continued development, building to scale and taking to market its new venture, ThreatWave.

Co-founder Scott Brown, meanwhile, was replaced late last year as chief executive of the company by fellow co-founder Tom Bartel.

Bartel said Thursday that is not going away. Rather, it and ThreatWave will essentially be like two divisions of the company. But ThreatWave will be front and center.

The change in CEO, Bartel said, was a decision made by himself, Brown and the Switch Labs board after the decision was made to go after the ThreatWave opportunity. Bartel said his move into the CEO position was a logical one based on his background, which includes 10 years at New York-based email intelligence firm Return Path, where he served as general manager for certification services.

Brown, a veteran entrepreneur who retains an ownership stake in the company, declined to comment on the changes, referring all questions to Bartel.

“We think we have a good opportunity,” Bartel said. “The cyber-security market overall is expected to triple over the next three years.”

ThreatWave spun out of the work the company does with helps email providers clean up bounced email messages. So if a user sent an email that was kicked back to him, rather than an ugly text email with little useful information, generates clean-looking emails that explain the reason the email wasn’t delivered and possible solutions. The emails could also have ads placed in them.

In tracking billions of email messages per month, the majority of which came from spammers or other “bad actors,” as Bartel calls them, was gathering a giant data stream about the most dangerous emails, URLs and attachments being distributed.

ThreatWave is now selling that data stream via subscription to companies that provide antivirus software or platforms that keep email inboxes clean so that those companies can thwart threats before they reach their intended targets. Bartel said the data is collected and distributed in real time to help customers understand the biggest threats as recent as the last 10 to 15 minutes, “shortening the time to identify badness.”

Aside from just identifying malware, Bartel said the data stream is also valuable to businesses that want to know if their brands are being used nefariously in phishing schemes that try to get email recipients to click on bad links or attachments by making the emails appear to come from their company. Email service providers can also take such data and block messages before they get to their users.

Bartel said ThreatWave has been in a soft launch, and that a full market launch would likely come within the next quarter or two.

The new funding round came from previous investors. Early last year, Boulder-based firms Foundry Group and Bullet Time Ventures, which is now Techstars Ventures, participated in a $4.8 million funding round for Switch Labs.

Aside from the CEO change, Bartel said there haven’t been any employee changes directly related to the move toward ThreatWave. The company has 12 employees, and Bartel said he expects to eventually add some developers and sales staff as ThreatWave goes to market.

Bartel declined to comment on the revenue or profitability of

“We’re still happy with the product,” he said. “It’s still part of what we do.”

Loveland’s Madwire Media raises $2 million

Joshua Lindenstein

LOVELAND – Digital marketing and design agency Madwire Media LLC has raised a new $2 million round of equity funding, according to a document filed with the Securities and Exchange Commission this week.

A company official couldn’t be reached for comment Thursday.

The new funding comes less than a year after the 6-year-old Loveland company raised a $5.5 million Series A round last summer to ramp up marketing of a new software platform.

Joe Kellogg and his son JB founded the company in 2009, and have grown it to more than 150 employees since.

Revenue has grown rapidly as well. It hit $18.3 million last year, up from $13.4 million in 2013 and nearly quadruple the company’s 2011 mark.

In 2013, Madwire received a $2.9 million incentive package from the state to expand in Loveland and create 300 jobs over a five-year period.

California-based SnapLogic hiring for new Boulder office

BOULDER — SnapLogic, a cloud-software company based in San Mateo, Calif., has opened an office in Boulder and is hiring sales representatives to staff it.

The office at 929 Pearl St., Suite 200, opened in early April and will serve as inside-sales headquarters for the company. Garrett Cole, who started Thursday as director of inside sales, said he is looking to hire about eight inside-sales representatives, and then possibly “tapping into the technical talent Boulder has to offer, especially in the area of research and development.” The new space can accommodate about 22 people, he said.

SnapLogic connects data and applications in the cloud and on-premises through what it calls an “elastic-integration platform.”

SnapLogic chose Boulder, Cole said, because it’s an “emerging tech market … with a lot of talent to tap into, a lot of intelligent individuals who work hard and play hard. That’s the type of culture we’re after.”

Cole, who is anchoring the Boulder office after 19 months as marketing cloud application sales manager for Oracle in Broomfield, reports to Jack Kudale, SnapLogic’s senior vice president for global field operations, who came to SnapLogic in February with 20 years of enterprise-software experience.

“Opening our first inside-sales office is a natural evolution for SnapLogic as we scale our field operations in response to the increasing demand for our elastic-integration platform,” Kudale said. “Having this infrastructure in place will allow us to extend from product to market leadership, and take advantage of Boulder’s increasingly talented and vibrant workforce in the cloud and big-data integration markets.”

According to the company’s website, SnapLogic completed a successful fiscal year in 2014, more than tripling bookings over 2013.

A description of the sales-development representative jobs available in Boulder and a link to apply are on SnapLogic’s website.

San Francisco-based Recurly to open Boulder office, hire 30 by end of year

BOULDER – San Francisco software-as-a-service firm Recurly Inc. is planning to open a Boulder office within the next two months, with plans of hiring 30 employees locally by the end of the year.

Founded in 2010, Recurly’s platform powers the recurring and subscription billing for more than 1,700 companies, including the likes of CBS Interactive, Dish and LinkedIn.

Recurly employs 85 people at its San Francisco headquarters. Co-founder and chief executive Dan Burkhart said in a phone interview Tuesday that it was a senior engineer who had recently moved to Boulder from that office who advocated for a more formal presence here.

“There’s no question the culture and quality of life (of Boulder) has been a strong appeal for us in evaluating which locations made the most sense,” Burkhart said.

Burkhart said Recurly intends to hire six software development engineers in Boulder immediately, with the rest of the hires spread out over the next several months. He said the company will likely set up shop initially in the Fuse co-working space while it seeks out office space to lease.

Burkhart declined to disclose revenue Tuesday, but said the company has grown rapidly. The company has raised $19.6 million in venture capital, including a $12 million round last fall that is helping fuel the expansion to Boulder.

Recurly is hosting a tech talk/recruiting event at Bohemian Biergarten at 2017 13th St. in Boulder on April 23. More information on that event, titled ‘Entrepreneuring Company Growth: Lessons Learned Growing a Company from $0 to $1 billion in Payment Volume, can be found online.

Boulder-based JumpCloud raises $3.2M funding round

BOULDER – Software-as-a-service startup JumpCloud Inc. has raised a new $3.2 million funding round according to a recent filing made with the Securities and Exchange Commission.

The new funding comes a little more than a year after the Boulder-based company raised $3 million from Foundry Group and Bullet Time Ventures, which has since changed its name to Techstars Ventures.

The new funding brings JumpCloud’s total to nearly $7.5 million since the company’s 2012 launch.

JumpCloud CEO Rajat Bhargava could not be reached for comment Monday.

JumpCloud’s Directory-as-a-Service product helps companies authorize and manage the identities of their employees and the information technology resources they need to access.