Scale Venture Partners Announces Close of New $600 Million Fund
Oversubscribed fund continues firm’s focus on enterprise software including security, cloud infrastructure, and “Cognitive Apps”
Scale Venture Partners announced that it has closed Scale Venture Partners Fund VII with $600 million in committed capital. The fund, which was strongly supported by existing and new investors, continues the firm’s strategy of investing in cloud and SaaS software companies that are transforming how enterprises work. Scale’s previous fund, the $400 million Fund VI, closed in July 2018.
“Fund VII will build on the focus areas that have driven our success to date: future of work technologies, cloud infrastructure, industry verticals, and security,” said Andy Vitus, Partner at Scale Venture Partners. “We are increasingly interested in how machine intelligence, widespread platform interoperability via APIs, and automated data capture allow a new class of enterprise software that we’ve come to call ‘Cognitive Apps.’ These applications sit on top of today’s SaaS platforms to fully automate simple tasks and augment users performing complex tasks. We expect more AI-first companies to make creative use of algorithms, connectivity, and real-world data to build capabilities that were not previously possible.”
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Scale has experienced strong momentum recently in terms of the performance of its investments and growth of its team. Recent public offerings from Scale’s portfolio include Bill.com, JFrog, and Root Insurance. Recent investments include leading a $40M million Series B round in human resources software startup Papaya Global Ltd. and leading a $29 million Series B round for real estate tech startup Spruce Holdings Inc. Past marquee Scale investments include Box, DocuSign, HubSpot, ExactTarget, CloudHealth, Omniture, and RingCentral.
“Scale led our Series C nearly five years ago and continued as a partner all the way through our IPO this year,” said Shlomi Ben Haim, founder and CEO of JFrog. “From day one, Scale supported our strategic decision making with a data-driven approach and Scale Studio benchmarks. Their understanding of the SaaS market and guidance were valuable at each phase of our growth.”
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Scale Fund VII will be managed by partners Stacey Bishop, Rory O’Driscoll, Andy Vitus, Ariel Tseitlin, and Alex Niehenke. The firm has promoted Jeremy Kaufmann to Principal, Sam Baker to Vice President, and John Gianakopoulos to Senior Associate. In addition, Chris Yin recently became the firm’s newest Principal, joining Scale from RainforestQA where as VP Product he led the product, design, support, and community teams.
Since launching Scale Studio in 2018, the benchmarking platform has become the go-to tool for private cloud companies seeking to better understand their performance. The dataset that powers Studio benchmarks has grown significantly and today contains financials and metrics on more than 800 private companies across 8,000 fiscal quarters. That massive dataset delivers a high degree of precision — and thus value — for founders and company leaders using it to support their decision making.