How does Zylo’s Series A Funding Round Affect the SaaS Optimization Market?
Note: This blog contains excerpts from an Amalgam Insights Market Milestone covering this funding round in greater detail. To get the full story, please download the report.
On January 23, 2018, Zylo, a SaaS (Software as a Service) Optimization platform based in Indianapolis, Indiana, announced a $9.3 million funding round led by Bessemer Venture Partners with participation from Salesforce Ventures and the Slack Fund. In addition, previous investors High Alpha Capital, GGV, SV Angel, and Hyde Park Venture Partners also participated in this round. Zylo has previously been covered by Amalgam Insights in multiple reports and webinars as a market leader in the SaaS Optimization space and this funding round marks Zylo as an early leader in the battle to manage enterprise SaaS spend.
Zylo’s round of funding is the first significant Series A in the SaaS financial optimization space and Amalgam believes that both the timing and size of this funding are appropriate to the current market opportunity. Amalgam believes that this is this first of several major funding announcements in the SaaS optimization space in 2018, as this is a young and promising market ripe for growth.
Zylo has also distinguished itself from other SaaS optimization solutions through the size of its spend under management, which was published as over $1 billion in Zylo’s press release announcing this round of funding. Amalgam believes that the billion dollar mark is an important benchmark for specialist technology expense solutions in showing viability and the ability to scale an offering.
This funding round is also an important milestone in establishing a startup tech scene in Indianapolis that has been anchored by the ExactTarget/Salesforce footprint in Indianapolis. Amalgam believes that this funding round is indicative of a general shift in venture capital to look outside the Silicon Valley bubble and to acknowledge the massive growth potential of promising startups across the United States.
With this funding round, Zylo establishes itself as an early market leader in SaaS vendor optimization. In general, enterprises must start managing SaaS appropriately and to gain control of the highly disaggregated and standard-lacking SaaS spend in their organizations. To meet this need, Amalgam recommends Zylo for consideration in all enterprise IT departments seeking to consolidate SaaS portfolios that are estimated to be $1 million or more in annual spend.
For additional details, including
- Background on the market size for Software as a Service
- Enterprise management challenges for SaaS
- Market Opportunity for SaaS Optimization in the near term
- Zylo’s progress as a market leader in SaaS Optimization
- Recommendations for Enterprises in taming SaaS spend