DevOps tools provider JFrog closed a $165 million Series D funding round that significantly bolstered its cash position and pushed its valuation in excess of $1 billion. The investment also highlighted the cash-rich nature of the DevOps space.
JFrog’s latest investment round was led by Insight Venture Partners. That firm also led Sysdig’s recent $68.5 million Series D.
Others chipping in on the latest JFrog round included Battery Ventures, Spark Capital, Sapphire Ventures, Scale Venture Partners, Dell Technologies Capital, Vintage Investment Partners, and Geodesic Capital.
The Series D more than tripled JFrog’s $50 million Series C funding round that closed in 2016. It also pushed the company’s total funding haul to $226.5 million since its founding in 2008. JFrog CEO Shlomi Ben Haim said in an email that the company’s valuation was now “north of a billion dollars.”
The company will use the funds to develop new products and expand its reach. While still private, the company has seen a 500 percent increase in sales since its last funding round.
JFrog’s DevOps tools can be deployed in hybrid environments, including on-premises and across the industry’s largest public cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). The company has more than 5 million developers using its Artifactory platform to record when they build and release software.
JFrog competes against and interacts with a number of players in the DevOps arena. Those include vendors like Blue Medora, Cloudbees, CA Technologies, Chef, Dynatrace, Puppet, SaltStack, and the Ansible arm of Red Hat. Many of those firms have themselves recently closed funding rounds.
CloudBees and Puppet in June closed on separate funding rounds that totaled more than $100 million.
On the continuous integration/continuous delivery (CI/CD) side of the business, GitLab last month closed a $100 million Series D that pushed its valuation past the $1 billion market. And Microsoft acquired GitHub for $7.5 billion.
Both companies are based on Git, which is a platform where users can create software projects, offering code management and a collaboration channel. That platform is used in DevOps for planning, verification, packaging, and the release of applications.
An SDxCentral survey found that DevOps tools were used inside of 64 percent of the enterprises questioned. That was an increase from 37 percent in 2015.
Grand View Research recently noted in a report that the broader DevOps market was worth nearly $2.8 billion in 2016. The firm predicts the market will grow at an 18.6 percent compound annual growth rate (CAGR) through 2025.
JFrog’s Series D came on the heels of the company acquiring DevOps consulting company TrainLogic. The company used those assets to form its own DevOps consulting business.
JFrog last year acquired a trio of companies over an eight-month period. It purchased CloudMunch in a deal to add greater analytics to its management and distribution platforms; it acquired CI/CD firm Dimon; and it purchased Conan, which focused on open source package management.
IDC noted in a recent report that it expects the DevOps space to remain competitive as vendors push to bolster their platforms.
“The Cl/CD and the development side of the DevOps market is still relatively fluid, with a substantial number of VC-backed start-ups selling a wide variety of products,” IDC noted in a recent profile on JFrog. “There are efforts on the part of numerous vendors to stitch together a larger solution set but also integrate with other best-of-breed solutions. At some point, this market will begin to consolidate, and as that happens, there will be winners and losers.”