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Portfolio January 23, 2013

Congratulations to AppDynamics

AppDynamics Announces $50M Round of Financing

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Congratulations to Jyoti Bansal and the entire AppDynamics team, on today’s announcement of a $50M round of financing. AppDynamics has developed the industry’s next-generation application performance management (APM) solution, that simplifies the management of  complex business-critical applications.

Jyoti and I first met in February 2008, via an introduction by Rajeev Motwani at Stanford. It was evident in the very first meeting that Jyoti was exceptional – an ambitious, very bright, clear thinking young engineer with industry-leading domain experience. What uniquely stood out was his dream and determination to build a great enduring company. The initial company financing was co-led by Greylock and Lightspeed (Ravi Mhatre). Jyoti and the early engineering team worked out of Greylock offices, before the company moved to San Francisco. From day one, Jyoti instituted a maniacal focus on customer dialog and making customers successful.

Fast forward to today – AppDynamics has rapidly grown to 500 customers and 200 employees, and has emerged as the leading next-generation player in a multi-billion dollar enterprise market segment. The company’s singular customer focus, combined with innovative product and a high-velocity sales model, have propelled strong business growth. Jyoti has recruited a very strong product and executive team from leading companies including Adobe, BMC, CA, McAfee and Splunk. Kleiner Perkins (Matt Murphy) invested in the previous  financing round, and today’s financing round is led by Steve Harrick at IVP. In 2011, the company was lucky to attract an outstanding industry board member – Dev Ittycheria, formerly CEO at Bladelogic (and currently venture partner at Greylock).

Today marks an important milestone for the journey that began in early 2008 with a bold vision and a few powerpoint slides. The best is ahead as AppDynamics scales towards it’s mission of serving thousands of enterprise customers, and fulfilling the potential of becoming the management industry’s leading independent vendor.

“AppDynamics has developed the industry’s next-generation application performance management (APM) solution that simplifies the management of complex business-critical applications.”