NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--Finout, the FinOps (a portmanteau of “Finance” and “DevOps”) Certified Platform and a member of the FinOps Foundation, today announced the company has secured $18.5 million to date, closing a $14 million Series A led by Team8 Capital. The company’s previously unannounced $4.5M seed round was led by Pitango First.
Finout’s Series A round included participation from seed funding partners R Squared Ventures, Jibe Ventures and Seed Investor Ariel Maislos. Leading angel investors and toDay Ventures also participated in the seed round. The funding comes as Finout’s proprietary solution is in high demand, with an increasing number of cloud-enabled companies adopting its platform, such as WalkMe, Riskified, Hunters, Logz.io, Pixellot, Singular and Bigabid, among others.
The financing round will support Finout’s further disruption of the FinOps market, the ongoing expansion of its global team, and the release of even more advanced FinOps capabilities to help companies monitor, manage, and reduce their spend, empowering them to adapt to the current market landscape.
“The correction in the tech market has shifted focus from top-line growth to profitability, gross margins, unit economics and healthy business metrics for sustainable, long-term success. We’ve witnessed dozens of companies struggling to develop a solution to deal with the surge in usage-based cloud pricing, but nothing has been available – until now,” said, Co-Founder and Managing Partner at Team8, Liran Grinberg. “Managing cloud profitability is a board-level priority, which is why we’re so excited to lead this round. Finout is uniquely positioned to enable cost control across cloud platforms by providing an out-of-the-box solution that empowers the modern, cloud-based enterprise to achieve its FinOps goals.”
Usage-based cloud pricing is increasing - and the momentum isn’t slowing down
According to Openview Partners, adoption of usage-based pricing — rates calculated by usage rather than users — has doubled in four years and is expected to continue with 61% of software companies saying they plan to introduce it in the future.
As companies increasingly ditch traditional “seat-based” subscription models, they are facing a new set of challenges related to managing their cloud spend.
One “Mega-bill” for all cloud costs
Finout’s cloud cost management platform combines all invoices into one Mega-bill, enabling an unparalleled view of cloud spend — in minutes. It combines infrastructure services from cloud providers, data warehouses and CDNs including Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, Datadog, Kubernetes, and Snowflake as well as middleware such as Stripe, Twilio and AuthO.
Once in the Mega-bill, every line-item can be attributed to its business role, feature, team and product using advanced assignment rules, and virtual tagging — using the most granular cost units including native agentless Kubernetes support. Finout can then correlate those costs to unit economics using external metrics and business data sources such as Datadog, Salesforce, Looker and more and even add revenue data to show profitability margins for each customer.
“We are seeing companies of all sizes using Finout to improve accountability,” said Roi Ravhon, co-founder & CEO of Finout. “In the long term, cost reduction happens at scale. If you cut usage costs by 20 percent, that’s admirable, but only a quick fix. To actually optimize costs and achieve better margins, businesses need to measure the cloud cost increase in relation to the business so they can make informed decisions and ensure that engineers take action.”
“In the midst of the COVID quarantine, we decided to lead Finout’s seed round 100% through Zoom because we saw the rise of FinOps happening all around us, and recognized the far-reaching potential of this new category being created,” said Eyal Niv, managing partner at Pitango First. “Finout’s ability to translate technology to business attribution, getting them all the way to cost per customer positioned them to be the exact solution we sought.”
Finout is a modern, self-service cloud cost management and observability tool that provides FinOps unmatched business context into cloud environments. By correlating business metrics with cloud costs, Finout clients are empowered to make healthier business decisions that improve efficiency, pricing and go-to-market strategy. For more information, please visit: www.finout.io