SAN FRANCISCO — Amplitude, the product analytics company, announced it raised $30 million in Series C funding led by IVP. Existing investors Benchmark Capital and Battery Ventures also participated in this round, bringing total funding to date to $59 million.
Launched in 2014, Amplitude said its business has grown at over 30 percent each quarter and now serves more than 5,000 companies, including Microsoft, Twitter and PayPal. The company plans to use the funds to further scale its operations globally and build new solutions to help product teams succeed.
“The future of building a highly successful business lies in product,“ said Spenser Skates, CEO of Amplitude. “While the influence and importance of product teams inside large enterprises is skyrocketing and product teams are now being held accountable for business metrics such as user growth and revenue, they’re stuck using solutions built for marketing that don’t tell them how their products are being used and what features drive revenue. Many of these companies are turning to Amplitude because we are the only solution custom built to serve their needs.”
Product experience has become the new competitive battleground, and businesses are increasingly searching for better software that helps them build, analyze and monetize great products. However, no software solution exists today explicitly for product teams, forcing them to either cobble together marketing, business intelligence and revenue reporting tools for an incomplete view of their products, or rely on analysts to try to help them understand their own core metrics.
Modern product teams require advanced analytics with behavioral queries to help them understand drivers of their core metrics, such as the best pathways in their product for driving recurring value or what early user actions correlate best with long term retention. Product teams at companies like Microsoft, Hubspot and Under Armour use Amplitude for its powerful behavioral analytics solution.
“Product teams serve an essential function in companies, and yet there is no platform dedicated to helping empower their success today,” said Somesh Dash, General Partner at IVP, who will join Amplitude’s Board as an Observer. “IVP is investing in Amplitude because we know they have the potential to transform critical business outcomes for product leaders. We see the same possibilities for a paradigm shift in product analytics as we saw with Adobe Omniture galvanizing marketing analytics and Salesforce catalyzing sales process and analytics.”