Funding flurry: Sumo Logic, Coupa Software, Snapchat

Another day, another round of big-dollar tech funding deals.

Monday morning brought news from Sumo Logic, a cloud-based machine data analytics platform, that the Redwood City-based firm had raised $80 million. The financing round — led by DFJ Growth, and including new investor Institutional Venture Partners and existing investors Greylock Partners, Sequoia Capital, Sutter Hill Ventures and Accel Partners — brings Sumo Logic’s total venture funding to $160.5 million.

In a written news release, the company said it would use the new funds primarily for hiring. Employee count, which increased by 250 percent from last year, is expected to double to about 400 employees within the next year. The company added more than 500 business customers in the past year; it sells cloud software to companies including Netflix and McGraw-Hill. Sumo Logic has a machine-data analyzing system, hosted in Amazon Web Services,that can find patterns or detect anomalies that could help a company’s IT staff better see where problems may be lurking and improve company operations.

On to Coupa Software, the San Mateo-based financial applications company, which also on Monday announced it had raised $80 million in funding. The round was led T. Rowe Price and Iconiq Capital, and previous investors Mohr Davidow Ventures and Blue Run Ventures also joined the round. Coupa’s total venture funding now exceeds $165 million.

Founded in 2006, Coupa makes cloud-based software for businesses to improve cash control and management and reduce costs. The company says its customers — which include Salesforce and the Royal Bank of Canada — may realize up to 11 percent savings on their overall spending.

And last but not least, we turn to Southern California for Snapchat’s long-awaited and long-rumored mega funding round. On Friday, the white-hot messaging app announced it had raised about $537 million in new funding from investors. The financing values Snapchat at $16 billion and marks a 60 percent bump from its previous round in December, according to Dow Jones and Wall Street Journal data. Investors include Chinese e-commerce giant Alibaba, General Catalyst Partners, Lightspeed Venture Partners, Coatue Management, DST Global and Alibaba’s rival, Tencent Holdings.

Snapchat, which allows users to send videos, images and messages, as well as send payments, has now raised $1.2 billion from investors. CEO Evan Spiegel said last week the startup is planning an initial public offering but did not specify when that would happen.

Illustration from Thinkstock


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