New Relic offers an all-in-one server and application performance monitoring SaaS that lets developers observe end-user experience, server behavior, and application code-level performance. Its platform combines user monitoring, application monitoring, and availability monitoring in a single product to manage web application performance in real time. The company reports analyzing over 200 billion data points per day for more than 3 million application instances across tens of thousands of customers. Founder Lew Cirne said the new funding will help accelerate global momentum, expand presence among large enterprises, and develop new and existing products, including a real-time analytics platform. Cirne has previously discussed an IPO as a possible outcome, suggesting this could be the last outside round as the company prepares for a public offering. Early investors include Benchmark, Trinity Ventures, Tenaya Capital, and Allen & Co. New Relic provides application performance and real-time monitoring services. The company reports 35,000 active customers, 5,000 paying customers, and monitors over 85 billion metrics per day. It raised $80 million in a recent financing to accelerate product development and expansion. Management plans to use the funds to build real-time monitoring for mobile apps, add support in Europe, and grow the engineering team by 80%. CEO Lew Cirne said the company is planning an IPO and values New Relic at $750 million. New Relic faces a lawsuit from CA seeking undisclosed damages and an injunction alleging patent infringement and misuse of intellectual property; the CEO expressed confidence the company will prevail. Founder Lew Cirne previously sold Wily Technology to CA in 2006 for $350 million. New Relic offers an all-in-one SaaS platform that combines user monitoring, application monitoring, and availability monitoring to let developers and operations teams manage web application performance in real time. The product supports apps built with Ruby, PHP, Java, .NET and Python and integrates with PaaS providers including Heroku, EngineYard, CloudBees, Acquia and ActiveState. The company has monitored 227,894 app instances and captured 29 billion daily metrics. New Relic counts customers such as Groupon, Zynga and Nike and reported a record Q3 2011 with 200 percent year-over-year revenue growth. The company plans to use the new funding to develop and expand its SaaS cloud application management product and to support growth. Founder and CEO Lew Cirne says the application performance management market is a $3 billion space and believes over 80% of web applications will be managed by SaaS offerings like New Relic's. New Relic offers a web-based application monitoring service that surfaces slow pages and problematic pieces of code (for example, SQL queries) in cloud-hosted applications. The platform monitors apps running on Amazon EC2 and Rackspace and recently added support for Microsoft .NET and PHP. New Relic hosts its processing infrastructure in-house, which the company says lowers overhead and limits site impact to roughly 2–3 percent. The product reportedly converts much of its value into revenue through self-selling behavior; the company counts about 3,000 clients including AT&T, Fox Interactive Media and Thomson Reuters. New Relic has experienced about 200 percent year-over-year growth, employs 32 people, and CEO Lew Cirne expects the company to become cash-flow positive without needing the large ($50M) rounds other web-based SaaS firms often raise. Founded in 2008 and based in San Francisco, the company targets developers and operations teams seeking deep production visibility. New Relic builds RPM, a plugin that gives developers diagnostic tools to find and fix problems in Ruby on Rails code. The San Francisco company launched in May and has been growing quickly, adding an average of 170 new customers per month. It reports 850 paying customers, including Getty Images, Hot Topic, and 37Signals, plus 1,400 users signed up for its free RPM Lite service. New Relic plans to use new funding to pursue product opportunities at the higher end of the Rails management market. The company’s leadership includes founder Lewis Cirne, who previously led Wily Technology to roughly $100 million in annual revenues before its acquisition by CA. Management says the new round was not driven by cash shortage but by opportunity to expand product offerings.

Total raised

$215M

Funding rounds

6

Latest round

Equity

Latest activity

Apr 2014