Financial newspaper FD reports ‘delivery automation software’ provider XebiaLabs has raised its first external funding from US growth investors Update Partners. The fast growing company has raised US$ 12 million, valuing the company at c. EUR 44 million (US$60m).
XebiaLabs is an internal spin-off (‘spin-in’?) of larger Xebia Group (EUR45m revenues), founded in 2008 by Daan Teunissen. The company was originally based in Hilversum, but has moved headquarters to Boston, US, to expand internationally. The move, funding and product are similar to that of fellow Dutch application developer Mendix, which is also officially based in Boston.
XebiaLabs develops enterprise solutions that enable easier, faster and more frequent deployment of software. Founder Teunissen compares their offering to a conveyor belt – as large a part of the development is being automated, eliminating errors and increasing the rate of deployment.
The spin-in has been growing at double digit numbers over the past years and reached EUR10m in revenues. It aims to reach profitability on the back of this new funding by the end of next year. Up to this point XebiaLabs had been funded (with EUR7m) by Xebia Group, but Teunissen felt it was time for some rocket fuel now to grow the company tenfold over the next four years.
The funding was raised from American growth investors Updata Partners, in what seems to be a sweet spot deal for them. The firm has a sizeable portfolio of stakes in fast growing software, application and cloud companies. Their best-known investment (at least in Europe) is probably their co-investment in techblog Mashable’s Series A.
Photo by Pieter van Marion (creative commons via Flickr)