Prismatic Funding , mage by TheDigitalWay from PixabayPrismatic has announced a Series B funding round. It has raised a total of $22 million, with Five Elms Capital leading the round. This is the second time that Five Elms has invested in Prismatic, as it also led the $9 million Series A round in February 2023.

Austin Gideon, Principal at Five Elms Capital, commented, “Prismatic’s stellar growth since its Series A, achieved in less than a year, has solidified the indispensable role of embedded iPaaS in B2B SaaS companies. We are seeing intense demand across our portfolio of B2B software companies for a platform to help augment integration capabilities.

“Scaling software companies are able to realize strong returns on investment by utilizing Prismatic’s platform, allowing teams to remain focused on delivering new products to customers. Partnering with this team again for the Series B gives us the opportunity to make meaningful advancements and improvements in the future of SaaS.”

Where will Prismatic spend the funding

According to Prismatic, it will look to use the finance to expand its R&D investment. It will continue to invest in product development for its iPaaS platform. This is similar to the decision where it spent its Series A funding. That money helped to develop its embedded integration designer, which allows SaaS teams to build integrations, manage them at scale and yet still enable customers to self-service the integrations. In 2024, it is looking to develop further enhancements, making the platform more versatile and easier for SaaS teams to manage integrations using the embedded iPaaS platform.

Michael Zuercher, CEO and Co-founder of Prismatic, image from LinkedIn
Michael Zuercher, CEO and Co-founder of Prismatic.

Michael Zuercher, CEO and Co-founder of Prismatic, commented, “Modern B2B SaaS teams juggle a growing expectation to integrate with the other software their customers use. Fulfilling these requirements is costly, time-consuming and frustrating, but Prismatic’s embedded integration platform (embedded iPaaS) provides a seamless, scalable experience that enables teams to focus on innovation. Amid SaaS industry challenges, Prismatic’s consistent, strong quarterly growth demonstrates the pivotal role integrations play in the future of SaaS.”

Based in Sioux Falls, South Dakota, the company has just under 50 employees (Source LinkedIn = 44). It currently has five open roles and may well add more, describing itself as a fast-growing team. Their efforts, and those of the sales and marketing team, have been recognised. Prismatic was consistently listed as a leader in the G2 grids for embedded iPaaS in 2023.

Enterprise Times: What does this mean?

With a Series B round following quickly after Series A, it shows the strength of the iPaaS market. It also shows the potential of Prismatic. Other recent funding has included Datablend, PortX and Patchworks Media. The iPaaS market is estimated to reach USD 61.67 Billion by 2030 with a CAGR of 32.47% (Source: Kings Research). It is clearly an attractive market to investors. Prismatic, with rapid growth and support from its investors, seems poised to capture a greater share.

Development of a product takes time. What is slightly surprising is that there is no mention of investment in growing sales and marketing. Scaling-up is usually left to Series C funding. However, some investment is normally seen within Series B. Is this truly a Series B funding or an extension of Series A?

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