Testlio Raises $ 12 Million to Help Software Developers Evolve Testing – TechCrunch

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While software development frameworks make software development faster and easier than ever before, pre-deployment testing is getting more and more complex day by day. During the last decade, Testlio has grown exponentially and positioned itself as a “Elance for Software Testing”. In addition to its own team of around 150 people, the company now has an army of more than 10,000 independent testers selected from 150 countries around the world. The fundraising allows the company to double its own software platform for managing software testing and further strengthen its sales and operations.

“We work with companies that produce digital products. This includes companies like Amazon, American Express, Fox, Microsoft, Netflix, NBA, SAP, ViacomCBS and many more. We work with very, very large companies, and we have become an extended part of their quality organization, ”says Steve Semelsberger, who joined Testlio as CEO in 2018.“ We also have offers tailored to start-ups. , who may have recently lifted an A-Series round and are looking to better scale their testing and quality capabilities. “

The company today announced it has closed $ 12 million in Series B funding. The tour was led by Spring Lake Scholarship Partners and has been oversubscribed. It included the participation of the co-leaders of Series A Altos Ventures and Vertex Ventures US. With the turn, Jeff Williams, partner at Spring Lake Equity Partners, joins Testlio’s board of directors.

The company wouldn’t give a precise valuation, but Semelsberger suggests its Series B valuation was north of $ 100 million.

Testlio CEO Steve Semelsberger. Image credits: Testlio

“We’ve been profitable for 10 quarters and actually got 75% of our cash from the Series A round,” says Semelsberger, who points out that the company aims to invest heavily in R&D for a period of time to focus on growth. fast. “A lot of Series B rounds are really big now, and I would consider a $ 12 million round relatively small. Our strategy here is to keep the total capital in the business below our revenue execution rate. It’s an interesting way to think about fundraising. But we think this high B series can take us, maybe as far as we need to go.

Testlio surpassed an annualized revenue rate of $ 20 million this year after previously raising just $ 7.5 million in seed and Series A capital. The company increased its revenue by 50% and its employees by nearly 100% year over year.

The company argues that demand for a more efficient approach to software testing has exploded with the unprecedented proliferation of digital technologies, and product and engineering teams are under pressure to increase development speed and deliver experiences. user of exceptional quality.

As part of the fundraiser, the company paid a significant amount to its existing employees.

“Twenty-five percent of the turn will go – or has already gone – to our employees. We have decided to allow anyone who has been with us for more than three years to sell a minority part of their acquired equity, ”explains Semelsberger. Of course, with the new $ 12 million coming into the bank account, the company is about to embark on a hiring wave, and distributing equity to its existing staff can prove to be an investment. useful as a recruiting tool. “The idea came from experiments that a number of us have had, where it sometimes takes a while for a business – especially a business that is as intentional as ours – to achieve liquidity. The way we implemented it was that the employees who had been with us for over three years were able to sell up to 19% of their vested options. The idea was that it would reward people who have been here for a while and also show those who have just joined this Testlio, that fairness is definitely worth something.

In addition to hiring and growing the sales organization, the company plans to invest in its own platform, designed to facilitate the management and resources of complex test processes. The platform is a SaaS solution that enables Testlio customers to receive vibrant and effective testing experiences powered by “an optimized mix of humans and machines”.

“We have built a test management platform. Today our platform team consists of around 50 people, which includes product managers, product designers, designers, engineers, AI, ML, data scientists, etc. . », Explains Semelsberger. “This team has created a system that manages the test workflow itself: definition of test case tests, integration between manual and automated testing, and it is also a logistics management system.”

“Testlio is exactly the kind of company that Spring Lake Equity Partners enjoys working with: growing, capital efficient, innovating effectively and in the midst of a massive market,” said Jeff Williams, Partner at Spring Lake Equity Partners. “We have been impressed with the Testlio team over the past two years, have gotten to know them and are optimistic for what lies ahead.”


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