Okta raises $75 mln from Sequoia, others on heels of last round
SAN FRANCISCO, June 9
SAN FRANCISCO, June 9 (Reuters) - Okta, which helps companies manage computer log-ins, said on Monday it had raised $75 million just nine months after its last funding round, underscoring the pressure many software firms are under to expand quickly before rivals catch up.
Okta, which plans to use much of the cash to fuel an international expansion, including in Asia, offers cloud-based software. A flood of such software firms has meant many entrepreneurs are eager to raise money at a much quicker pace than in the past.
Todd McKinnon, Okta's chief executive, said in an interview he expects this funding round to be the last until the company's initial public offering, perhaps in two years.
Other companies to recently announce funding rounds within months of a previous round include benefits company Zenefits and Hortonworks, which helps companies organize and manipulate big sets of data.
The funding comes as Internet-delivered, subscription-based software stocks have slumped on public markets this year, although the sector is recovering from earlier lows. Workday Inc and Salesforce.com Inc have shed around 3 percent and 6 percent of their market value respectively for the year to date.
Sequoia Capital led the funding round, and its partner Pat Grady will take a seat on Okta's board. The round includes contributions from other existing investors Andreessen Horowitz, Greylock Partners and Khosla Ventures, as well as new investors Janus Capital Group and Altimeter Capital.
Okta has now raised a total of $155 million, it said.
(Reporting by Sarah McBride; Editing by Edwina Gibbs)
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