New Relic Raises $80 Million
New Relic is an app performance company that has raised $80 million as they look into going public. Insight Venture Partners led the round of funding. Other participants in this round of funding include T. Rowe Price, Dragoneer Investment Group LLC, Passport Ventures LLC, Benchmark Capital, Trinity Ventures, Tenaya Capital, and Allen & Company.
New Relic has around 35,000 active customers and 5,000 are paying for the service. The company’s valuation is now at $750 million. The company plans to eventually go public rather than pursue an acquisition according to New Relic CEO Lew Cirne.
Cirne previously sold a company called Wily Technology to CA Technologies in 2006 for $350 million. Shortly after New Relic started a real-time monitoring service, CA filed a lawsuit against them for lost profits. CA is also seeking an injunction against New Relic to prohibit the infringement of CA patents and misuse of I.P.
New Relic plans on using the funding to increase their real-time monitoring services for mobile apps. The company monitors around 85 billion metrics per day and they will be adding support in Europe soon. They will also increase their engineering team by 80%.