SaaS startup PagerDuty hits $1.3 value to become a new cloud unicorn after $90 million Series D investment from T. Rowe Price and others
PagerDuty, a SaaS startup that develops an operations performance platform for delivering visibility and actionable intelligence across the entire incident lifecycle and helps businesses monitor their technology stacks, has raised $90 million in Series D investment to become a new cloud unicorn at $1.3 billion valuation. The latest round of funding was led by T. Rowe Price Associates and Wellington Management, with participation from existing PagerDuty investors Accel, Andreessen Horowitz, and Bessemer Venture Partners. The round brings PagerDuty’s total amount of capital raised to $173 million. The new will be used to accelerate its platform for real-time operations, the company said.
Founded 2009 in Toronto, Ontario, by University of Waterloo graduates Alex Solomon, Andrew Miklas, and Baskar Puvanathasan. The company was incubated at the Y Combinator. PagerDuty is an operations performance platform delivering visibility and actionable intelligence across the entire incident lifecycle. Its SaaS-based solution empowers over 10,000 small, mid-size and enterprise global customers such as Comcast, CapitalOne, eHarmony, Slack and Lululemon with the insight to intelligently respond to critical disruptions for exceptional customer experience.
PagerDuty was founded to deliver a new and innovative approach to increase business response and efficiency. PagerDuty’s SaaS software helps organizations large and small, visualizes every dimension of the customer experience with contextual insights and interactive applications, and optimize response orchestration and continuous development and delivery. The company raised a seed funding round of $1.9 million in 2010, followed by a Series A round that raised $10.7 million in January 2013.
“We are thrilled T. Rowe Price and Wellington have joined our journey to build an enduring company offering mission-critical products and services our customers need and trust,” said Jennifer Tejada, CEO at PagerDuty. “This capital infusion allows us to continue our investments in innovation that leverages artificial intelligence and machine learning, enabling us to help our customers transform their companies and delight their customers. From a business standpoint, we can strengthen our investment in and development of our people, our most valuable asset, as we scale our operations globally. We’re well positioned to make the lives of digital workers better by elevating work to the outcomes that matter.”
GE, Capital One, IBM, PayPal, The Gap, Spotify, Netflix, Vodafone, and over 10,500 enterprises around the world trust PagerDuty to improve digital operations, drive revenue, mitigate threats, protect assets, and ensure a great digital customer experience. Modern businesses of all sizes across various industries are undergoing digital transformation by modernizing their IT infrastructure, migrating their assets to the cloud, and seeking innovative ways to leverage big data and IoT approaches. These businesses need technology that can ensure their operations deliver great customer experiences.
PagerDuty’s platform gathers and analyzes incoming digital signals from its ecosystem of over 300 of the world’s most widely used monitoring tools, ticketing platforms, and applications such as Slack, AppDynamics, New Relic, Amazon CloudWatch, Zendesk, and ServiceNow. The platform also leverages nine years of machine and human response data. Artificial intelligence is applied to these signals in the context of human response patterns (such as how similar issues were previously remedied) to orchestrate teams across the organization, automate workflows, and coordinate response. The platform predicts how and when events may occur, enabling teams to proactively take immediate action to not only respond to events, but also prevent business-critical issues.
“We are impressed by PagerDuty’s market leadership, business growth, and product vision to become the de facto real-time operations platform for businesses undergoing digital transformation,” said Henry Ellenbogen, Portfolio Manager of T. Rowe Price New Horizons Fund. “We see the strength of the PagerDuty brand as it’s commonly used in many startups. The platform has become a basic requirement needed to build a modern business. We are excited to support Jennifer and the leadership team and believe they can build a much larger company.”