There’s money to be had in ensuring that a company’s cloud software actually works.
ThousandEyes, a startup that can detect when cloud software goes down like an app that shows customer information, said on Thursday it that had landed $35 million in new funding. Tenaya Capital led the deal along with new investor GV (formerly Google Ventures), and existing investors including Salesforce Ventures, Sequoia Capital, and Sutter Hill Ventures.
ThousandEyes has received a total of nearly $60 million in funding, said ThousandEyes CEO Mohit Lad.
The startup sells software that companies can install on their corporate networks that scans for all of the different cloud services they may be using. If a company’s Microsoft Office 365 app malfunctions, for example, ThousandEyes should be able to pinpoint what exactly caused it to fail so that IT staff can more quickly fix the problem, Lad explained.
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Additionally, ThousandEyes has partnered with a number of big technology companies like Salesforce (CRM) and Microsoft (MSFT) that deliver software to their customers via their own data centers. These cloud companies use ThousandEyes to help them discover when their cloud software fails to perform correctly for their customers so they can more finely tune their products.
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“That is why Salesforce got in,” said Lad in reference to why Salesforce is both an investor and partner of the company. “They felt the pain of delivering something over the Internet.”
Lad acknowledged that some startups are struggling to raise money, reversing years of relatively easy money in the technology industry. However, he said ThousandEyes was able to close its funding round in two weeks because investors were pleased that it has been prudent with its finances.
The startup competes with some of the software products sold by older and bigger technology companies like IBM (IBM), NetScout Systems (NTCT), and CA Technologies (CA).
ThousandEyes has a staff of nearly 100, and plans to double its headcount with the funding, Lad said.