KC-Based Stackify Is Growing Fast, Hiring Too
Stackify has raised another round of capital. Stackify filed paperwork on November 20, 2019 that they had raised $4.132 million dollars. In conversations with the company, they revealed that they had actually raised a little more than $6 million in the form of both debt and equity. The round included $2 million from Cypress Growth…
Stackify has raised another round of capital. Stackify filed paperwork on November 20, 2019 that they had raised $4.132 million dollars. In conversations with the company, they revealed that they had actually raised a little more than $6 million in the form of both debt and equity. The round included $2 million from Cypress Growth Capital – continuing the pattern of receiving money from angels only.
Stackify established a $2.74 bridge loan in early 2019. This convertible note is believed to be converting according to the terms of the note based on this new equity raise. Startlandnews.com in Kansas City did a good job of reporting on the earlier note (here).
At the time of the note, Watson is quoted as saying, “We are using the funds to continue our aggressive growth plans.” In a recent conversation with Silicon Prairie News, Watson elaborated: “We are growing about 50% year over year. Our hiring plans for 2019 revolve primarily around expanding our sales team.
Stackify provides an Application Performance Monitoring (APM) solution. Basically, APMs are used to ensure that the performance of both locally hosted cloud environments as well as public or hybrid cloud environments are performing well. So, for example, Stackify has a product named Retrace that helps companies as they move to the cloud improve performance by monitoring actual machine performance in a way that utilizes the best of existing tools and overlaying unique Stackify components, such as their proprietary App Score, that shows overall application health, and integrated logs and errors, that enable the pinpointing of errors in a fraction of the time. The goal is to continue to expand the product while continuing to focus on software developers. As Watson stated: “We are continuing to focus on making the very best APM solution designed for software developers. We are starting to attract more and more large enterprise accounts.”
According to the Gartner report on the Application Performance Monitoring report, the APM market is approximately $4.1 Billion with expected 10% CAGR through 2022. So, the large and fast-growing market mimics many of the markets associated with public and hybrid cloud expansion. Stackify Retrace supports pre-production and production polyglot environments on platforms like AWS and Microsoft Azure, positioning the company to continue its significant YoY growth.
Stackify was founded by Matt Watson in Leawood, Kansas in 2013. He was the founder of another tech startup in 2003 called VinSolutions. VinSolutions was a CRM and lead management software for auto dealerships. The company ultimately sold to AutoTrader for $135-147 million (reports vary). Matt has repeatedly stressed that his evolution as an entrepreneur has included both his experience at VinSolutions and Stackify on his well-regarded podcast – Startup Hustle. He hosts this podcast with fellow entrepreneur, Matt DeCoursey.
Stackify has received multiple rounds of investment – including this new round. In total, the company has raised more than $10 million of outside dollars from angel investors. Many of these angels are from the KC region.. However, Watson’s previous business success helped get the company started, and his expertise continues to be one of the growth engines pushing Stackify forward.
To find out more about the company, check out their website at www.stackify.com.
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