In the latest funding round for FinancialForce.com the company has raised $100 Million led by Technology Crossover Ventures (TCV) and Salesforce Ventures.
Jeremy Roche, CEO and President, FinancialForce.com must be extremely pleased by the success of the latest round of funding. Growing the business successfully is not easy but receiving a massive vote of confidence from Salesforce in the form of an investment is maybe the best fillip that Roche could have received. While TCV are the main investor in this latest round of funding Salesforce Ventures have once again invested into FinancialForce.com.
TCV already invest in a number of other business and finance companies, including Avalara, a SaaS provider of sales tax compliance software through their cloud-based tax management platform. Avalara is already integrated with Salesforce and one wonders whether Tim Mcadam, the TCV general partner that has just joined the board will look to leverage the relationships across the investment portfolio for FinancialForce.com’s benefit. McAdam commenting on the investment said “FinancialForce.com exemplifies the type of market-defining cloud software innovator that is central to our investment strategy. The company uniquely allows end-users to gain a unified, informed view of the customer experience across the entire organization. Already the market’s fastest growing cloud ERP provider, FinancialForce.com is now poised to transform the future of back-office applications. We are delighted to partner with Jeremy and the FinancialForce.com team to help the company accelerate its growth and market penetration, and achieve its objective to reshape the world of enterprise software.” Mcadam’s appointed is the second new member of the board in less than a year after John Bonney joined in September 2014 as CFO.
The $110 will be invested in continuing the rapid expansion of the business that has seen the annual subscription run rate grow by 91 percent and a $50 million revenue run rate during 2014. The money will be spend on a mixtures of product development, sales, marketing, alliances and customer support so we can expect some more news from Finacial Force during the year as they continue to expand their business.
Roche was happy with the investors and would have noted some of the successful companies that TCV have backed in the past, these include Netflix, Extrahop and GoDaddy. He commented “Our goal has always been to transform the ERP market in the same way that Salesforce has for CRM. As our growth indicates, the industry is responding to our customer-centric approach to ERP where our apps, built natively to run alongside the Salesforce Customer Success Platform, help businesses create meaningful relationships with customers and employees to grow their top and bottom lines. With TCV and Salesforce Venture’s contributions, FinancialForce.com can continue our rapid rate of growth and become the cloud ERP choice for all forward-thinking companies”
Will Salesforce look to buy FinancialForce.com at some point. The original ownership of Unit4 must be diluting now with a nother round of investment so it will be interesting to see if Salesforce do believe that they need to own an accounting package. Of course this might upset the strategic relationship with Sage