Harness Raises $150 Million in New Financing

Rhea-AI Summary

Harness has announced a $150 million financing round with investments from Silicon Valley Bank and Hercules Capital. This funding will support expanding the Harness platform, adding new modules, integrating generative AI, and investing in go-to-market strategies. The company, which has seen its Annual Recurring Revenue (ARR) grow from $1 million to over $100 million in five years, aims to enhance developer productivity and reduce non-code-producing work.

Key milestones include 44 million code deployments in 2023, the introduction of generative AI assistant AIDATM, launch of four new product modules, and the addition of enterprise customers like Nike and NetApp. The financing will enable Harness to continue innovating and expanding its market-leading software delivery platform.

Positive

• Secured $150 million in new financing from Silicon Valley Bank and Hercules Capital.
• Annual Recurring Revenue (ARR) grew from $1 million to over $100 million in five years.
• 44 million code deployments executed in 2023, more than double from 2022.
• Launched four new product modules, enhancing the platform's offerings.
• Introduced AIDATM, a generative AI assistant integrated into the Software Delivery Lifecycle.
• Added notable enterprise customers, including Nike and NetApp.
• Expansion of executive team with experienced talent, including a new Chief Revenue Officer and SVP of Marketing.

Negative

• No specific negative business or financial aspects were highlighted in the press release, but the focus on rapid expansion and heavy investment may imply potential risks related to overextending resources or market saturation.

Insights

Financial Analyst

The recent financing round, amounting to $150 million, underscores significant investor confidence in Harness's long-term growth prospects. This capital injection will likely accelerate the company's platform innovation, particularly in integrating generative AI, which can substantially enhance developer productivity and streamline the software delivery lifecycle. Annual Recurring Revenue (ARR) growth from $1M to over $100M in just five years is a strong indicator of the company's robust business model and market acceptance.

From a financial standpoint, the partnership with established financial entities like SVB and Hercules Capital adds to the company's credibility. For retail investors, this can be seen as a positive signal, suggesting Harness is well-positioned to leverage this funding toward sustainable growth and further market penetration. However, it is also essential to monitor how effectively the company utilizes these funds to achieve its stated objectives.

In the short term, this funding is likely to drive immediate platform enhancements and potentially attract more enterprise customers. In the long term, retail investors should watch for improvements in operational efficiency and whether the company's innovations translate to sustained revenue growth and market share expansion.

Tech Expert

Harness’s focus on expanding its platform with new modules and enhanced AI integration represents a significant technological advancement. The introduction of AIDATM, a generative AI assistant, into all aspects of the Software Delivery Lifecycle, marks a pivotal step toward reducing the non-productive time developers spend on routine tasks. This can lead to substantial improvements in developer velocity, code quality and overall productivity.

The addition of new product modules like the Code Repository and Software Supply Chain Assurance positions Harness as a comprehensive, end-to-end solution for modern software development needs. These modules not only enhance the platform's existing capabilities but also offer tailored solutions for various organizational use cases, making it a versatile option for enterprises looking to optimize their software delivery processes.

For retail investors, the technological advancements signify Harness's commitment to staying ahead in the competitive landscape of software development tools. This not only boosts the company's value proposition but also potentially increases customer retention and acquisition, thereby driving future revenue growth.

Investment from Silicon Valley Bank and Hercules Capital Will Further Accelerate Platform Innovation

SAN FRANCISCO, May 14, 2024 /PRNewswire/ -- Harness, the Modern Software Delivery Platform® company, today announced $150 million in financing from Silicon Valley Bank (SVB), a division of First Citizens Bank, and Hercules Capital, Inc. (NYSE: HTGC). The investment will be used strategically to support the expansion of the Harness platform, including the addition of new modules, further integrating generative AI into the platform, and additional investments in the company's go-to-market engine.

"At Harness, we're building the next generation of intelligent tools and automation to supercharge developer productivity and reduce developer toil," said Jyoti Bansal, CEO and co-founder of Harness. "This funding enables our company to continue innovating at a record pace, transforming the software delivery lifecycle for today's modern enterprises. Every year, developers waste more than $1 trillion by spending 40%+ of their time working on mundane, non-code-producing work. Our platform empowers software teams to achieve excellence in velocity, quality, efficiency, and governance."

This investment comes on the heels of a groundbreaking FY2024, which included expanding our executive team with top-tier talent, achieving strong revenue growth, and significantly enhancing our platform. Key milestones include:

• Experienced rapid Annual Recurring Revenue (ARR) growth, going from $1M to more than $100M over the past five years.
• Customers executed more than 44 million code deployments with the Harness platform in 2023, more than double the number of deployments completed in 2022.
• Broadened and evolved product offerings by adding 2,800+ new features and enhancements across the Harness platform.
• Introduced AIDA^TM, a new generative AI assistant integrated directly into all aspects of the Software Delivery Lifecycle.
• Launched four new product modules: Code Repository, Internal Developer Portal, Infrastructure as Code Management, and Software Supply Chain Assurance. These new modules join the existing eight offerings to deliver a powerful, seamlessly integrated software delivery platform. Each module is a best-in-class offering that can be tailored to an organization's specific use case and business needs.
• Added new enterprise customers, including Nike, NetApp, MorningStar, and Icelandair.
• Welcomed Carlos Delatorre as Chief Revenue Officer and Gleb Brichko as SVP of Marketing.

"With this latest financing, Harness can further strengthen and expand its market-leading end-to-end software delivery platform," said Robert Parker, a Bay Area-based Director covering Enterprise Software with SVB's Corporate Technology Banking group. "SVB is thrilled to continue our longstanding relationship with Harness, a prominent Forbes Cloud 100 company."

"We are proud to begin our partnership with Harness in collaboration with SVB. Our flexible financing solution will support the Harness team as they continue to innovate and transform the software development industry," said Steve Kuo, Senior Managing Director and Group Head of Technology at Hercules Capital.

About Harness
Harness is the leading end-to-end platform for complete software delivery. It provides a simple, safe, and secure way for engineering and DevOps teams to release applications into production. Harness uses AI and machine learning to monitor the quality of deployments and automatically roll back failed ones, saving time and reducing the need for custom scripting and manual oversight, giving engineers their nights and weekends back. Harness customers accelerate deployments by up to 75%, reduce infrastructure costs by up to 60%, and decrease lead time for changes by up to 90%. Harness is based in San Francisco.

Please visit www.harness.io to learn more.

About Silicon Valley Bank
SVB's Technology Corporate Banking Division works with some of the most innovative public and late-stage private companies in the U.S. technology sector, providing a full suite of lending and banking solutions, as well as guidance as an active and trusted partner helping clients succeed and quickly scale. SVB is proud to serve over two-thirds of the companies currently listed on the Forbes 2023 Cloud 100 list.

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science, healthcare, private equity, venture capital, and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights, and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First-Citizens Bank & Trust Company, Member FDIC. Learn more at svb.com

About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences, and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed over $20 billion to over 650 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@htgc.com, or call 650.289.3060.

Contact: press@harness.io

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SOURCE Harness

FAQ

What is the recent investment round for Harness?

Harness raised $150 million in new financing from Silicon Valley Bank and Hercules Capital.

What are the key milestones achieved by Harness recently?

Key milestones include ARR growth from $1 million to over $100 million, 44 million code deployments in 2023, and the introduction of new features and product modules.

How will the new financing be used by Harness?

The financing will support platform expansion, integration of generative AI, and investments in go-to-market strategies.

Which notable enterprise customers has Harness added recently?

Harness has added enterprise customers including Nike, NetApp, MorningStar, and Icelandair.

How has Harness's ARR changed over the past five years?

Harness's ARR has grown from $1 million to over $100 million in the past five years.

What new product modules has Harness launched?

Harness launched four new product modules: Code Repository, Internal Developer Portal, Infrastructure as Code Management, and Software Supply Chain Assurance.