May 5th, 2016 by Adam Armstrong
With The Help Of Ford & Microsoft, Pivotal Raises $253 Million In Funding
Pivotal announced today that its latest round of series C financing has landed the company $253 million in new cash. One of the major new investors this go round was Ford Motor Company in conjunction with Microsoft. Pivotal also raised money from its existing investors including GE, EMC, and VMware. This funding round is expected to close this month and is subject to customary conditions, including receipt of required regulatory approval.
Pivotal has been around for just three years but it has managed to work its way into 7 of the top 10 banks in the United States, 3 of the top 5 automakers in the world, and 5 of the top 10 telecommunication companies. Pivotal’s customers include roughly one-third of the Fortune 100 companies such as GE, Ford, Verizon, Home Depot, Comcast, Humana, Lockheed Martin, and Allstate. Pivotal has made headway with these customers by using its unique value proposition of delivering a modern software development methodology coupled with a modern cloud platform and data tools.
Major milestones for Pivotal include:
- Recently announced first-quarter 2016 revenue of $83 million, up 56% year over year
- Annualized recurring revenue of $116 million at March 31, 2016, up more than 200% year over year for Pivotal’s subscription software products—Pivotal Cloud Foundry and Pivotal Big Data Suite
- Pivotal Cloud Foundry and Pivotal Big Data Suite having crossed the $200 million and $100 million annual bookings run-rate milestones, respectively
- Over 2,000 employees and 17 offices worldwide
Pivotal focuses mainly on vertical markets such as automotive, banking, telecommunications, insurance, and retail with its software aiding in a range from personalized healthcare to networked industrial machines to the connected cars. Speaking of connected cars, Pivotal and Ford are working together on Ford’s newly launched FordPass platform. FordPass is a new customer platform that not only enables Ford owners to control their connected vehicles, but gives them access to technical help and roadside assistance, a perks program as a reward for customers, and marketplace that not only allows for purchases for the vehicle (including parking) but also allows certain models to be “shared” where the owner can make money while their vehicle is in long term parking.