Jul
11
2019
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Signavio raises $177M at a $400M valuation for its business process automation solutions

Robotic Process Automation has been the name of the game in enterprise software lately — with organizations using advances in machine learning algorithms and other kinds of AI alongside big-data analytics to speed up everything from performing mundane tasks to more complex business decisions.

To underscore the opportunity and growth in the market, today a startup in the wider segment of process automation is announcing a significant fundraise. Signavio, a company founded out of Berlin that provides tools for business process management — “providing the ‘P’ in RPA,” as the company describes it — has picked up an investment of $177 million at what we understand is a valuation of $400 million.

This round is large on its own, but even more so considering that before this the company — founded in 2009 — had only raised around $50 million, according to data from PitchBook. This latest capital injection is being led by Apax Digital (the growth equity team of Apax Partners), with DTCP. It notes that existing investor Summit Partners is also keeping a stake in the business with this deal.

The company was founded by a team of alums from the Hasso Plattner Institute in Potsdam, Germany, who used research they did there for creating the world’s first web modeler for business process management and analytics as the template for Signavio’s own Process Manager. (The name “Signavio” seems to be a portmanteau of “navigating through signals,” which essentially explains the basics of what BPM aims to do to help a business with its decision making.)

Partly because it’s raised so little money, Signavio has been somewhat under the radar, but it has seen a huge amount of growth. It says that revenues in the last 12 months have grown by more than 70%, and its software is used by more than one million users across 1,300 customers — with clients including SAP, DHL, Liberty Mutual, Deloitte, Comcast and Puma. It counts Silicon Valley as its second HQ these days; that trajectory will be followed further with this latest funding: Signavio says the funding in part will be going to international expansion of the business.

“10 years ago, we set out on a journey to tackle the time-consuming practices that limit business productivity,” said Dr. Gero Decker, CEO and co-founder of Signavio, in a statement. “This significant new investment further validates our approach to solve business problems faster and more efficiently, unleashing the power of process through our unique Business Transformation Suite. We are thrilled to welcome Apax Digital as our new lead partner, and look forward to building upon our success to date by leveraging our partners’ operating capabilities and global platforms for our international expansion.”

The other area of investment will be the company’s technology suite. While BPM has been around for years as a concept — and indeed there are a number of other companies that provide tools that are compared sometimes to Signavio’s, such as from biggies like IBM and Microsoft through to Kissflow and others — what’s interesting is how it’s had a surge of interest more recently as organizations increasingly start to add more automation into their IT infrastructure, in part to reduce the human labor needed for more mundane back-office tasks, and in part to reduce costs and speed up processes.

Robotic process automation companies like UiPath and Blue Prism bring some of the same processing tools to the table as Signavio, although the argument is that the latter — which says it helps to “mine, model, monitor, manage and maintain” customers’ data — provides a more sophisticated level of data crunching that can be used for RPA, or for other ends. (It also works with several of the big RPA players, mainly Blue Prism but also UiPath and Automation Anywhere.)

“As businesses have become more global, and workforces more distributed, business processes have proliferated, and become more complex,” noted Daniel O’Keefe, managing partner, and Mark Beith, managing director, of Apax Digital, in a joint statement. “Signavio’s cloud-native suite allows employees across an enterprise to collaborate and transform their businesses by digitizing, optimizing and ultimately automating their processes. We are tremendously excited to partner with the Signavio team and to support their vision.” The two will also be joining Signavio’s board with this round.

Jun
18
2019
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Blue Prism acquires UK’s Thoughtonomy for up to $100M to expand its RPA platform with more AI

Robotic process automation — which lets organizations shift repetitive back-office tasks to machines to complete — has been a hot area of growth in the world of enterprise IT, and now one of the companies that’s making waves in the area has acquired a smaller startup to continue extending its capabilities.

Blue Prism, which helped coin the term RPA when it was founded back in 2001, has announced that it is buying Thoughtonomy, which has built a cloud-based AI engine that delivers RPA-based solutions on a SaaS framework. Blue Prism is publicly traded on the London Stock Exchange — where its market cap is around £1.3 billion ($1.6 billion), and in a statement to the market alongside its half-year earnings, it said it would be paying up to £80 million ($100 million) for the firm.

The deal is coming in a combination of cash and stock: £12.5 million payable on completion of the deal, £23 million in shares payable on completion of the deal, up to £20 million payable a year after the deal closes, up to £4.5 million in cash after 18 months, and a final £20 million on the second anniversary of the deal closing, in shares. Thoughtonomy had never raised outside funding, although that was not for lack of interest.

“We’ve had approaches on a daily basis since the intelligent automation market has exploded,” said Terry Walby, CEO and founder of Thoughtonomy, in an interview, “but getting the best outcome for the company and our customers is not just about taking money and headlines [touting] our valuation.”

The acquisition comes about six months after Blue Prism announced it would be raising around $130 million (£100 million) to continue growing at a time when RPA is getting a lot of attention in the market. Linda Dotts, the company’s SVP of global partner strategy and programs, today confirmed that it did raise that money, and that part of the proceeds of that are being used to make the Thoughtonomy acquisition. She also confirmed that it would be looking at other opportunities, a sign that we are likely going to see at least a little more consolidation in this space.

On the same day that it had announced that fundraise, Blue Prism also unveiled a new AI initiative, working with partners to execute on that. And indeed that is what it is getting with Thoughtonomy. The companies were already working together before this — Thoughtonomy’s other key partners are companies like Microsoft’s Azure and Google Cloud, used to deliver its services — and according to Walby, the idea is that his startup will be helping Blue Prism get its services to the next level of where RPA is going.

“We provide architectural support and add intelligence,” he said in an interview. “Our platform addresses activities that require understanding or interpretation, and so it expands the use cases for RPA beyond structured processes.”

That’s notable, given the position of Blue Prism within the RPA landscape. The company is one of the more legacy providers — one of the consequences of being an early mover — and while that gives it a clear advantage of showing it has staying power, in the world of software that can be a more challenging sell when younger companies are building tech from scratch on newer frameworks. (UiPath, which has made major inroads into RPA both in terms of its customer and partner growth, as well as in terms of its funding, is one example.)

And in a market that is still seeing growth (read: companies often operate at a loss to invest in that growth), its ups and downs are there for everyone to see and scrutinise. In its half-year earnings that it posted today, its negative EBITDA margin widened once more — sales, marketing and other business development efforts come at a cost, for one — although group revenues also nearly doubled to £41.6 million from £22.9 million in the same period a year earlier. Total customer numbers are up 91% over the same period a year ago, and with sales returns typically taking about 12 months to come through on the balance sheet, the longer-term picture is worth watching, too.

Apr
30
2019
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UiPath nabs $568M at a $7B valuation to bring robotic process automation to the front office

Companies are on the hunt for ways to reduce the time and money it costs their employees to perform repetitive tasks, so today a startup that has built a business to capitalize on this is announcing a huge round of funding to double down on the opportunity.

UiPath — a robotic process automation startup originally founded in Romania that uses artificial intelligence and sophisticated scripts to build software to run these tasks — today confirmed that it has closed a Series D round of $568 million at a post-money valuation of $7 billion.

From what we understand, the startup is “close to profitability” and is going to keep growing as a private company. Then, an IPO within the next 12-24 months is the “medium term” plan.

“We are at the tipping point. Business leaders everywhere are augmenting their workforces with software robots, rapidly accelerating the digital transformation of their entire business and freeing employees to spend time on more impactful work,” said Daniel Dines, UiPath co-founder and CEO, in a statement. “UiPath is leading this workforce revolution, driven by our core determination to democratize RPA and deliver on our vision of a robot helping every person.”

This latest round of funding is being led by Coatue, with participation from Dragoneer, Wellington, Sands Capital, and funds and accounts advised by T. Rowe Price Associates, Accel, Alphabet’s CapitalG, Sequoia, IVP and Madrona Venture Group.

CFO Marie Myers said in an interview in London that the plan will be to use this funding to expand UiPath’s focus into more front-office and customer-facing areas, such as customer support and sales.

“We want to move into automation into new levels,” she said. “We’re advancing quickly into AI and the cloud, with plans to launch a new AI product in the second half of the year that we believe will demystify it for our users.” The product, she added, will be focused around “drag and drop” architecture and will work both for attended and unattended bots — that is, those that work as assistants to humans, and those that work completely on their own. “Robotics has moved out of the back office and into the front office, and the time is right to move into intelligent automation.”

Today’s news confirms Kate’s report from last month noting that the round was in progress: in the end, the amount UiPath raised was higher than the target amount we’d heard ($400 million), with the valuation on the more “conservative” side (we’d said the valuation would be higher than $7 billion).

“Conservative” is a relative term here. The company has been on a funding tear in the last year, raising $418 million ($153 million at Series A and $265 million at Series B) in the space of 12 months, and seeing its valuation go from a modest $110 million in April 2017 to $7 billion today, just two years later.

Up to now, UiPath has focused on internal and back-office tasks in areas like accounting, human resources paperwork, and claims processing — a booming business that has seen UiPath expand its annual run rate to more than $200 million (versus $150 million six months ago) and its customer base to more than 400,000 people.

Customers today include American Fidelity, BankUnited, CWT (formerly known as Carlson Wagonlit Travel), Duracell, Google, Japan Exchange Group (JPX), LogMeIn, McDonalds, NHS Shared Business Services, Nippon Life Insurance Company, NTT Communications, Orange, Ricoh Company, Ltd., Rogers Communications, Shinsei Bank, Quest Diagnostics, Uber, the US Navy, Voya Financial, Virgin Media, and World Fuel Services.

Moving into more front-office tasks is an ambitious but not surprising leap for UiPath. Looking at that customer list, it’s notable that many of these organizations have customer-facing operations, often with their own sets of repetitive processes that are ripe for improving by tapping into the many facets of AI — from computer vision to natural language processing and voice recognition, through to machine learning — alongside other technology.

It also begs the question of what UiPath might look to tackle next. Having customer-facing tools and services is one short leap from building consumer services, an area where the likes of Amazon, Google, Apple and Microsoft are all pushing hard with devices and personal assistant services. (That would indeed open up the competitive landscape quite a lot for UiPath, beyond the list of RPA companies like AutomationAnywhere, Kofax and Blue Prism who are its competitors today.)

Robotics has been given a somewhat bad rap in the world of work. Critics worry that they are “taking over all the jobs“, removing humans and their own need to be industrious from the equation; and in the worst-case scenarios, the work of a robot lacks the nuance and sophsitication you get from the human touch.

UiPath and the bigger area of RPA are interesting in this regard. The aim (the stated aim, at least) isn’t to replace people, but to take tasks out of their hands to make it easier for them to focus on the non-repetitive work that “robots” — and in the case of UiPath, software scripts and robots — cannot do.

Indeed, that “future of work” angle is precisely what has attracted investors.

“UiPath is enabling the critical capabilities necessary to advance how companies perform and how employees better spend their time,” said Greg Dunham, vice president at T. Rowe Price Associates, Inc., in a statement. “The industry has achieved rapid growth in such a short time, with UiPath at the head of it, largely due to the fact that RPA is becoming recognized as the paradigm shift needed to drive digital transformation through virtually every single industry in the world.”

As we’ve written before, the company has has been a big hit with investors because of the rapid traction it has seen with enterprise customers.

There is an interesting side story to the funding that speaks to that traction: Myers, the CFO, came to UiPath by way of one of those engagement. She had been a senior finance executive with HP tasked with figuring out how to make some of its accounting more efficient. She issued an RFP for the work, and the only company she thought really addressed the task with a truly tech-first solution, at a very competitive price, was an unlikely startup out of Romania, which turned out to be UiPath. She became one of the company’s first customers, and eventually Dines offered her a job to help build his company to the next level, which she leaped to take.

“UiPath is improving business performance, efficiency and operation in a way we’ve never seen before,” said Philippe Laffont, founder of Coatue Management, in a statement. “The Company’s rapid growth over the last two years is a testament to the fact that UiPath is transforming how companies manage their resources. RPA presents an enormous opportunity for companies around the world who are embracing artificial intelligence, driving a new era of productivity, efficiency and workplace satisfaction.” 

Feb
04
2019
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Chicago RPA startup Catalytic hauls in $30M Series B

Robotics process automation (RPA) is as hot as any enterprise technology at the moment, as companies look for ways to marry their legacy systems with a more modern flavor of automation. Catalytic, a startup from the Midwest, is putting its own flavor on RPA, aiming at more unstructured data. Today it was rewarded with a $30 million Series B investment.

The investment was led by Intel Capital, with participation from Redline Capital and existing investors NEA, Boldstart and Hyde Park Angel. Today’s round brings the total raised to almost $42 million, according to the company.

RPA helps automate highly mundane processes. Sean Chou, Catalytic co-founder and CEO, says there are a couple of ways his company’s solution diverts from his competition, which includes companies like Blue Prism, Automation Anywhere and UIPath.

For starters, Chou says, his company’s solution concentrates on unstructured data, like pulling information from documents or emails using a variety of techniques, depending on requirements. It could be old-fashioned scanning and OCR or more modern natural language process (NLP) to “read” the document, depending on requirements.

It is designed like all RPA tools to take humans out of the loop when it comes to the most mundane business processes, but, as Chou says, his company wants human employees in the loop whenever needed, whether that’s exception processing or tasks that are simply too challenging to program at the moment.

The company launched in 2015 using money Chou had earned from the sale of his previous company, Fieldglass, which he had sold the previous year to SAP for more than $1 billion dollars. Fieldglass helped with outsourcing, and as Chou developed that company, he saw a growing problem around automating certain tedious business processes, especially when they touched legacy systems inside an organization. He raised $3.1 million in seed money from Boldstart Ventures in NYC in 2016 and began building out the product in earnest.

Today, Catalytic has a dozen customers, including Bosch, the German manufacturing conglomerate. It employs 60 people in its Chicago headquarters. While its investors come from the coasts, Catalytic is building a company in the heart of the Midwest, a part of the country that has often been left out of the startup economy.

With $30 million, Catalytic can begin expanding the number of employees, including helping service its large customers, building out it partner network with other software companies and systems integrators and bringing in more engineering talent to continue building out the product.

The product is offered on a subscription basis as a cloud service.

Nov
15
2018
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RPA startup Automation Anywhere nabs $300M from SoftBank at a $2.6B valuation

The market for RPA — Robotic Process Automation — is getting a hat trick of news this week: Automation Anywhere has today announced that it has raised $300 million from the SoftBank Vision Fund. This funding, which values Automation Anywhere at $2.6 billion post-money, is an extension to the Series A the company announced earlier this year, which was at a $1.8 billion valuation. It brings the total size of the round to $550 million.

The news comes just a day after one of the startup’s bigger competitors, UiPath, announced a $265 million raise at a $3 billion valuation; and a week after Kofax, another competitor, announced it would be acquiring a division of Nuance for $400 million to beef up its business.

It’s also yet one more example of a one-two punch in funding. It was only in July that Automation Anywhere announced its $250 million raise.

This latest round adds some significant investors to the company’s cap table, specifically from the SoftBank Vision Fund, which counts a number of tech giants like Apple and Qualcomm as LPs, along with others. Specifically, the fund has been under fire for the last few weeks because of the fact that a large swathe of its backing comes from Saudi money.

The Saudi Arabian government has been in the spotlight over its involvement in the killing of journalist Jamal Khashoggi in its embassy in Turkey. By extension of that, there have been many questions raised in recent weeks over the ethics of taking money from the Vision Fund, with so many questions still in the air over that affair.

In an interview, Mihir Shukla, CEO and Co-Founder at Automation Anywhere, said that while what happened to Khashoggi was “not acceptable,” his conversations started with SoftBank before that and they did not impact the startup’s decision over whether to work with the Fund.

He declined to comment on the timing of the term sheet getting signed, when asked whether it was before or after the news broke of the murder.

What attracted us to SoftBank was that Masayoshi Son” — the CEO and founder of SoftBank — “has a vision and he is investing in foundational platforms that will change how we work and travel,” Shukla said. “We share that vision.”

He also pointed out that getting funding from SoftBank will “naturally” lead to more opportunities to partner with companies in SoftBank’s network of companies, which cover dozens of investments and outright ownerships.

While it feels like artificial intelligence is something that you see referenced at every turn these days in the tech world, RPA is an interesting area because it’s one of the more tangible applications of it, across a wide set of businesses.

In short, it’s a set of software-based “robots” that help companies automate mundane and repetitive tasks that would otherwise be done by human workers, employing AI-based technology in areas like computer vision and machine learning to get the work done.

Competition among companies to grab pole position in the space is fierce. Automation Anywhere has 1,400 organizations as customers, it says. By comparison, UiPath has 2,100 and claims an annual revenue run rate at the moment of $150 million. Shukla declined to disclose any financials for his company.

But in light of all that, the company will be using the funding to build out its business specifically ahead of rivals.

“With this additional capital, we are in a position to do far more than any other provider,” said Shukla in a statement. “We will not only continue to deliver the most advanced RPA to the market, but we will help bring AI to millions. Like the introduction of the PC, we see a world where every office employee will work alongside digital workers, amplifying human contributions. Today, employees must know how to use a PC and very soon employees will have to know how to build a bot.”

Automation Anywhere claims that its Bot Store is the industry’s largest marketplace for bot applications, designed both by itself and partners, to execute different business processes, with 65,000 users since launching in March 2018.

Nov
14
2018
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‘Software robot’ startup UiPath expands Series C to $265M at a $3B valuation

UiPath, a startup that works in the growing area of RPA, or robotic process automation — where AI-based software is used to help businesses run repetitive or mundane back-office tasks, to free up humans to tackle more sophisticated work — has raised money for the third time this year. The company is today announcing that it has closed out its Series C at $265 million — $40 million higher than the amount it said it was aiming for two months ago.

UiPath is now disclosing new investors in the round — namely, IVP, Madrona Venture Group and Meritech Capital — plus secondary sales for employees to give them liquidity, which made up the difference. The company has confirmed to me that the transactions were done at the same valuation as the rest of the Series C, at $3 billion. The Series C is still led by CapitalG and Sequoia Capital as before.

For some context, earlier this year, the company also raised a Series B of $153 million at a $1.1 billion valuation.

UiPath’s strong valuation hike and the rapid pace of its funding come at a time when both the company and its rivals are all growing quickly, as enterprises rush to capitalise on the rise of artificial intelligence in the workplace. In the case of RPA, the promise is that it will help bring down the cost of doing business and improve organizations’ efficiency. UiPath’s mantra is to provide “one robot for every person,” essentially doubling a company’s workforce without the need to hire more people.

UiPath says that its current annual run rate is now $150 million, up from a $100 million ARR figure it put out just two months ago, with customers now numbering at 2,100 and including the US Army, Defense Logistics Agency, GSA, IRS, NASA, Navy, and the Department of Veterans Affairs. One source at the company tells me that it’s getting approached “almost daily” for more funding at the moment.

At the same time, the competitive landscape is most definitely heating up. We’ve heard that Automation Anywhere, which also just raised money — $250 million — earlier this year, may also be looking to raise more (we’re looking into it). And just earlier this week, we reported that another RPA player, Kofax, acquired a division of Nuance for $400 million to ramp up its image processing business.

“I am honored to have IVP, Madrona Venture Group and Meritech Capital as new investors in UiPath. Their leadership and guidance will no doubt help us continue to define and lead the Automation First era for customers everywhere. UiPath has had many funding options and I believe we have selected the investors that align best with our culture and beliefs. I am humbled as the syndicate of unquestionably top-tier venture capital firms who believe in UiPath and support our future,” said UiPath CEO and co- founder Daniel Dines said in a statement. “Additionally, it is a core UiPath principle to share the success of the company in a meaningful way with our hard-working and long-time employees and we were excited to be able to extend the opportunity, at their personal choice, to realize partial liquidity in this round.”

Updated with clarification about the employee liquidity sales and new investor names.

Sep
18
2018
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UiPath lands $225M Series C on $3 billion valuation as robotic process automation soars

UiPath is bringing automation to repetitive processes inside large organizations and it seems to have landed on a huge pain point. Today it announced a massive $225 million Series C on a $3 billion valuation.

The round was led by CapitalG and Sequoia Capital. Accel, which invested in the companies A and B rounds also participated. Today’s investment brings the total raised to $408 million, according to Crunchbase, and comes just months after a $153 million Series B we reported on last March. At that time, it had a valuation of over $1 billion, meaning the valuation has tripled in less than six months.

There’s a reason this company you might have never heard of is garnering this level of investment so quickly. For starters, it’s growing in leaps in bounds. Consider that it went from $1 million to $100 million in annual recurring revenue in under 21 months, according to the company. It currently has 1800 enterprise customers and claims to be adding 6 new ones a day, an astonishing rate of customer acquisition.

The company is part of the growing field of robotic process automation or RPA . While the robotics part of the name could be considered a bit of a misnomer, the software helps automate a series of mundane tasks that were typically handled by humans. It allows companies to bring a level of automation to legacy processes like accounts payable, employee onboarding, procurement and reconciliation without actually having to replace legacy systems.

Phil Fersht, CEO and chief analyst at HfS, a firm that watches the RPA market, says RPA isn’t actually that intelligent. “It’s about taking manual work, work-arounds and integrated processes built on legacy technology and finding way to stitch them together,” he told TechCrunch in an interview earlier this year.

It isn’t quite as simple as the old macro recorders that used to record a series of tasks and execute them with a keystroke, but it is somewhat analogous to that approach. Today, it’s more akin to a bot that may help you complete a task in Slack. RPA is a bit more sophisticated moving through a workflow in an automated fashion.

Ian Barkin from Symphony Ventures, a firm that used to do outsourcing, has embraced RPA. He says while most organizations have a hard time getting a handle on AI, RPA allows them to institute fundamental change around desktop routines without having to understand AI.

If you’re worrying about this technology replacing humans, it is somewhat valid, but Barkin says the technology is replacing jobs that most humans don’t enjoy doing. “The work people enjoy doing is exceptions and judgment based, which isn’t the sweet spot of RPA. It frees them from mundaneness of routine,” he said in an interview last year.

Whatever it is, it’s resonating inside large organizations and UiPath, is benefiting from the growing need by offering its own flavor of RPA. Today its customers include the likes of Autodesk, BMW Group and Huawei.

As it has grown over the last year, the number of employees has increased 3x  and the company expects to reach 1700 employees by the end of the year.

Mar
02
2018
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UiPath raising around $120M at $1B+ valuation for its ‘software robots’ for internal business tasks

 The initial hype around bots — applications that run partly or entirely using natural language processing, machine learning, computer vision and other AI tech to help consumers ask and answer questions, buy things and get other stuff done — may have waned a bit, but a startup building the equivalent for the enterprise world, in a fast-growing field called robotic process automation,… Read More

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