Provo – Qualtrics closed a $180 million funding round at a $2.5 billion valuation. The round was led by Insight Venture Partners and Accel, with participation from Sequoia Capital. This funding round increases Qualtrics’ valuation 2.5 times over its previous valuation in late 2014. This investment also makes Qualtrics the single largest aggregate investment in the history of the Accel’s portfolio.
The announcement comes just weeks after Qualtrics launched its Qualtrics XM Platform.
“We have been following Qualtrics since 2010. Each year, they have surpassed aggressive goals and continued to stay cash flow positive. The company has even grown at an accelerating rate over this time, placing them among the best-performing enterprise software companies we’ve ever worked with,” said Ryan Sweeney, partner at Accel and Qualtrics board member.
“From a revenue standpoint, Qualtrics is already the size of most public companies and there’s room for a lot more growth considering the large and expanding market in which they play,” said Sweeney. “The interest from investors everywhere underscores the notion that Qualtrics is likely the best private software company on the market today—we are very fortunate to be their partner.”
The funding announcement comes on the heels of Qualtrics establishing the experience management category and launching its XM Platform, which manages the four core experiences of business—customer, employee, product and brand experience—in one single platform. The platform automatically analyzes these touchpoints, helping organizations uncover key business drivers, predict future customer needs, and retain employees and customers.
“We have a lot of great momentum right now with the launch of the XM Platform. I could not be more proud of the team we have put together. This raise is a great step forward for everyone involved,” said Ryan Smith, co-founder and CEO of Qualtrics. “Our investors doubling down is a huge sign of their confidence in the team and the amazing growth ahead of us with experience management.”
“One of the reasons we are so bullish on Qualtrics is that every organization in the world needs an experience management platform. It’s a single system of record for all your experience data. Qualtrics is to XM what Salesforce is to CRM—the category king with a product that is mission critical to every organization,” said Jeff Lieberman, managing director of Insight Venture Partners and Qualtrics board member.
In conjunction with the financing round, Qualtrics will add Murray Demo to its board of directors. Demo is currently CFO at Atlassian, another Accel portfolio company, where he guided the company through its 2015 $4.4 billion initial public offering. Demo previously served as CFO for tech leaders Adobe Systems and Dolby Laboratories. Qualtrics appointed former Apple and Google executive, Kim Scott, to the board in April 2016.
“Qualtrics is an outlier,” said Bryan Schreier, partner at Sequoia Capital and Qualtrics board member. “They have delivered accelerating growth at nine-digit revenue numbers all while staying cash flow positive. We’re excited to work with the Qualtrics team on their continued market leadership and success.”