Jason Del Rey

Recent Posts by Jason Del Rey

Zuora Lands $50 Million Series E on Back of “Subscription Economy”

Tien Tzuo

In Zuora CEO Tien Tzuo’s worldview, just about any service or product that would make sense to be sold as part of a subscription business model, should be. And the rise in popularity of subscription offerings in the software, commerce and digital-media categories are just the beginning of a broader change that will soon shape many other industries.

Tzuo’s pitch is self-serving, of course, but investors seem to like it; it has helped Zuora, which makes a billing platform to help software, media and telecom companies manage subscriptions, raise a fresh investment round of $50 million.

“It isn’t just about taking HR and procurement and moving it to the cloud,” said Tzuo, one of Salesforce.com’s earliest employees. “It’s about a fundamental change in consumer behavior — companies and people wanting to subscribe.”

Paul Allen’s Vulcan Capital, Northgate and Next World Capital all participated. A long list of current investors, which includes Shasta Ventures, Benchmark Capital and Marc Benioff, also contributed in the round.

Zuora is seeing annual revenue in the mid-eight-figure range, according to Tzuo, from a client base that includes Box, DocuSign and Dell.

The company has now raised more than $132 million.

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Another gadget you don’t really need. Will not work once you get it home. New model out in 4 weeks. Battery life is too short to be of any use.

— From the fact sheet for a fake product entitled Useless Plasticbox 1.2 (an actual empty plastic box) placed in L.A.-area Best Buy stores by an artist called Plastic Jesus