Analytics startups, Amplitude, has raised $30 million in Series C funding. This round was led by Institutional Venture Partners (IVP), with participation from Battery Ventures and Benchmark Capital. This brings total funding to $59 million for the company. In addition to the funding, Somesh Dash, General Partner at IVP will join the board at Amplitude as an observer.
Amplitude is an analytics startup that aids companies in studying online consumer behavior. The startup was founded out of San Francisco in 2012 and offers a core product analytics platform. This platform allows companies to see what customers are doing, so they can decide what they pay for and use a product.
The overall goal is to help companies improve their offerings by understanding how a customer actually uses them. This is done by analyzing the customer coming onto an app or website, watching what they do, and seeing points where they may leave.
“The future of building a highly successful business lies in the product,” explained Amplitude CEO Spenser Skates. “While the influence and importance of product teams inside large enterprises are skyrocketing and product teams are now being held accountable for user growth and revenue, they’re stuck using solutions built for marketing that doesn't tell them how their products are being used and what features drive revenue. Many of these companies are turning to Amplitude because we are the only solution custom built to serve their needs.”
One of the most useful tools Amplitude offers is Compass, which allows users to draw connections between user actions and retention rate. For example, it might show that a user who links their account to an external website is more likely to come back. Knowing that the company could promote that integration to encourage more people to use the site repeatedly.
Another tool is Pathfinder which applies the same idea to lead conversion. The company can see steps that users take toward making a purchase so companies can identify ways to improve.
Amplitude serves over 5,000 companies, which include major players like Twitch, Booking.com, Autodesk, HubSpot, PayPal, and Microsoft.
Institutional Venture Partners is a California-based late-stage venture capital firm founded in 1980. The company has invested in over 300 companies, over a 100 of which have gone public. Recent investments have gone to companies like TuneIn, Coinbase, Sumo Logic, Casper, and Discord.
Battery Ventures is a venture capital firm with offices in Silicon Valley, Boston, and Israel. They invest in all stages of a company and are flexible about amounts and types of syndication.
Benchmark Capital focuses on early-stage venture investing in social, marketplaces, mobile, and infrastructure software. The firm has offices in San Francisco and Woodside, California.
The company expresses that the funds will be used to scale its operations on a global scale, while also building fresh solutions for product teams. They have a team of 100 but plan to double the team over the next year.