Call it the Salesforce impact.
Although company expense account instruments do not sometimes generate the identical buzz or pleasure as shopper apps, Salesforce’s success in the enterprise enterprise has impressed a new technology of enterprise startups— and a frenzy of funding.
On Tuesday Divvy, a enterprise expense administration platform, introduced it had closed $200 million in Series C funding led by NEA. This is the startup’s third financing round in less than a year.
“Our design wasn’t to grow as fast as we can and raise a ton of venture capital,” Divvy cofounder and CEO Blake Murray informed Business Insider. “We wanted to ride it out and see where it could go, but it became a deluge of venture groups saying ‘holy cow look what you guys have built.'”
Divvy didn’t disclose the corporate’s valuation in the most recent funding.
The three-year previous Utah-based startup permits companies to trace bills in actual time, and affords a bank card product to clients. Brex, one other buzzy enterprise bank card startup, has additionally loved skyrocketing success and piqued buyers’ curiosity in a subject lengthy dominated by American Express.
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NEA’s General Managing Director Scott Sandell will be a part of Divvy’s board of administrators as its third member alongside Jeff Lieberman of Insight Partners and Ben Lambert from Pelion Venture Partners. According to Crunchbase, Divvy closed $250 million in debt financing in January. Divvy’s funding round didn’t embody debt financing, in line with a supply aware of the deal.
A protected distance from Silicon Valley
According to Murray, Divvy has added three,000 enterprise companions to its platform since launching publicly in January 2018 and is including “hundreds more every month.”
The platform lets companies monitor and analyze enterprise bills in near actual time, one thing Murray stated units Divvy aside from extra conventional enterprise expense trackers. Businesses with the Divvy bank card can set budgets for groups and shortly approve purchases as they arrive in as an alternative of reviewing all bills on the finish of the month.
Murray says that staying out of Silicon Valley has helped his workforce keep away from the “noise” of quick development and inflow of enterprise capital, and hopes that staying a protected distance away from the West coast will assist his workforce of 200 keep away from “getting out ahead of their skis” in their subsequent part of development. Murray says the brand new funds will assist the workforce “invest and reinvest” in product growth and engineering, with modest hiring will increase to assist the platform develop past its flagship bank card providing.
“The reason why there’s not a lot of friction is because we are solving need-to-have problems with need-to-have software, not nice to haves,” Murray stated.
Customers will “use you and dump you if you’re are just solving nice-to-have problems with cool features.”