Institutional Venture Partners has led a $50m growth financing round for web app performance management company AppDynamics.
Kleiner Perkins Caufield & Byers, Greylock Partners and Lightspeed Venture Partners also took part in the Series D round, which the company said would be used to accelerate hiring to meet high demand for its Application Performance Management platform.
The funding round – the largest in the company’s history – follows two years in which sales increased at a compound average growth rate of 300 per cent.
Last year the company brought in industry veterans Joe Sexton, the former head of global Sales at McAfee, and Ed Rowe, former head of R&D for Adobe developer products, as executives.
IVP general partner Steve Harrick said, “AppDynamics is poised to become the leader in a multi-billion dollar market with its unique technology and its customer-friendly sales model.
“IVP is a believer with conviction in AppDynamics’ vision, market opportunity, and leadership team.
“The rapid growth and customer momentum at AppDynamics points to a bright future for AppDynamics.
“Supporting a company that solves practical, real-world problems in large markets fits squarely with IVP’s investment strategy and we believe AppDynamics is on a trajectory to become the next great enterprise software company.”
IVP closed its fourteenth fund on $1bn last year, following a $750m fundraise in 2010.
The latest vehicle was significantly oversubscribed, with IVP’s existing limited partners taking the vast majority of the fund.
IVP, which has $4bn under management, partners with entrepreneurs to finance rapidly-growing media and technology businesses that are addressing large market opportunities.
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