SAN FRANCISCO U.S. software-management company AppDynamics said Tuesday it raised $120 million in venture capital, launching the company into the growing group of startups valued at more than $1 billion.
The company taps into the growing tendency of business to rely on software applications, meaning easy-to-deploy software that does not rely on major technology infrastructure overhauls, unlike traditional software from legacy providers.
Managing applications is evolving into a $4 billion to $5 billion global business annually, said Jyoti Bansal, AppDynamics' chief executive officer, in its announcement.
While a number of consumer companies carry valuations topping $1 billion, few enterprise companies do. They include cloud-storage service Box, mobile-device management company Good Technology, data-management company Actifio, and storage-infrastructure company Nutanix.
Battery Ventures, ClearBridge Investments and Sands Capital are leading the funding round. Existing investors Greylock Partners, Lightspeed Venture Partners, Kleiner Perkins Caufield & Byers, and Institutional Venture Partners also participated.
As previously reported, Silicon Valley Bank is providing a $50 million debt facility.
AppDynamics has now raised more than $200 million.
(Reporting by Sarah McBride; Editing by Lisa Shumaker)