Utah Startup Domo Lands $125 Million in New Funding
Domo, the high-profile business intelligence startup launched in 2011 by Josh James, the former CEO of Omniture, has secured a massive new round of funding: $125 million.
This brings the total raised by Domo to $250 million and values the company at $825 million. The round was led by private equity firm TPG Growth, which will take a seat on Domo’s board. Other investors include Dragoneer Investment Group, Fidelity Investments, Morgan Stanley Investment Management and a strategic investment from Salesforce. T. Rowe Price and Viking Global Investors also participated. Investors in previous rounds included GGV Capital, Greylock Partners, Institutional Venture Partners and Mercato Partners.
It’s the latest step in the rise of Domo, a cloud software firm that aims to centralize the data involved with running a company in a way that allows executives to act on it. The problem is no one outside of Domo’s customers — which now number more than 500 — has seen it.
James has deliberately made a lot of noise about the company, but kept quiet about the product. In an interview in October, he said Domo could barely keep up with the demand from customers, then 300 or so.
Business intelligence is kind of hot right now, and has been for awhile. Numerous startups have aimed to disrupt the more established players in the field like SAP, IBM and Oracle. Aside from Domo, companies like GoodData, Tidemark and Birst have all raised large sums aiming at different aspects. Tableau Software is another that went public last year.
“There’s 10 different companies we see [when we pursue deals],” James said. “When people try our product out they need to compare it to something else when they show the boss; they need an alternative to consider. What we’ve got right now is really different so it gets compared to a lot of things.”
Since the funding round is heavy on institutional money, it raises the question of whether Domo might consider an IPO sooner rather than later. Investors like T. Rowe Price and Fidelity participated in late funding rounds for companies like Workday and Facebook, and rounds like that have often been considered the last step before an IPO. James agrees that’s a possibility. “This round is to take us to cash-flow positive,” he said. “We could IPO after that and maybe skip a D round.” That could happen within two years, he said.
The plan right now, he said, is to double the size of the sales team, now at 40 people, and add another 50 engineers.
Raising money hasn’t been an issue for James. He left Adobe in 2011 after selling Omniture to it for $1.8 billion two years before. He immediately found about $5 million in seed money and raised a $30 million A round at almost the same time.