Allstacks raises $12 million for its productivity tools
Allstacks, a software startup split between Raleigh and Austin, has raised $12.3 million to fund an expansion of its productivity tools that have benefited from a rise in remote work, the company tells Axios.
Why it matters: Productivity tracking tools, like the one offered by Allstacks, have become attractive as companies manage the progress of teams spread all over the world.
- The startup's software helps monitor whether potential software projects, like an update or a new product, are going to miss their deadlines and identify potential roadblocks before they become a problem.
The company was founded before the onset of the pandemic and saw a big uptick in customers during its initial months, as companies grappled with remote work.
- As remote work seems set to continue in large numbers, Allstacks' founders say interest in its products remains strong.
What they're saying: "We're not going back to the way things were," Allstacks CEO and co-founder Hersh Tapadia told Axios.
- "Some of the fundamentals of how [companies] function as an organization are changing, but the goals they have to hit don't," Tapadia said. "So how do they succeed in spite of that? That's been really key for our growth."
State of play: Allstacks' fundraising comes at a challenging time for startup support nationally, as investors have become more cautious due to rising interest rates.
- Tapadia said investors are starting to favor startups who can be responsible with money rather than spending for growth at all costs.
Yes, but: Venture capital firms still have a record amount of money to invest and startup funding has remained strong in the Research Triangle region despite the national downturn.
Details: Allstack's investors include Companyon Ventures, Atlassian Ventures and CreativeCo. Atlassian is one of the world's largest makers of collaborative software and an important partner for Allstacks.
- The company has now raised $21.2 million since it was founded, according to venture capital tracker Crunchbase.
What's next: The startup has around 30 employees. Roughly half are in downtown Raleigh.
- The company expects hiring to pick up with the new funding and to expand the capabilities of its flagship monitoring tool.
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