Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Apptio Lands $45 Million Series E From Janus Capital

moneybagsApptio, a company focused on helping CIOs get a deep understanding of their technology investments, has just scored a significant investment of its own.

The company announced a short while ago that it had landed a $45 million Series E round of financing led by Janus Capital; the Hillman Company, the investment firm run by Pittsburgh billionaire Henry Hillman; and a third party that was not named. Existing investors Andreessen Horowitz, Greylock Partners, Madrona Venture Group and Shasta Ventures also participated, as did a few accounts managed by investment firm T. Rowe Price. Cisco Systems is also an investor.

The round brings Apptio’s total capital raised to $136 million. Its last reported implied valuation was about $600 million. CEO Sunny Gupta wouldn’t tell me the new valuation, but said it was a “considerable improvement.” You can probably do the math yourself.

When I last checked in with Gupta in mid-2011, Apptio, which is based outside Seattle in Bellevue, Wash., had 60 customers, including Facebook, and was managing about $50 billion in tech investments. Now it has 125 customers, including Boeing, Target and Xerox.

Managing IT costs and investments is all Apptio does. Gupta is a former partner exec with Opsware, the company that venture capitalists Marc Andreessen and Ben Horowitz famously sold to Hewlett-Packard.

He spotted a shift in priorities: CIOs were increasingly focused not on managing technology, but on getting the best bang out of that technology for the dollar, and on keeping costs as low as possible.

Taking a round from institutional investors like Janus is usually a sign that an IPO is coming next. That’s the trajectory that both Facebook and Workday followed. Gupta was a little evasive when I asked him about his IPO plans. There’s nothing imminent, but he didn’t say anything to imply that we shouldn’t be watching for an S-1 filing within the next year or so. I certainly will be.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik