28 July 2020
Stack Overflow raises $85M in Series E funding to further accelerate SaaS business
GIC led the round with participation from Silver Lake Waterman and existing investors Andreessen Horowitz, Index Ventures, Spark Capital and Union Square Ventures (USV).
Stack Overflow, the most trusted platform for developers and technologists visited by more than 120 million people each month, today announced $85M in Series E funding led by GIC with participation from new investor Silver Lake Waterman and existing investors Andreessen Horowitz, Index Ventures, Spark Capital, and Union Square Ventures (USV). The round brings Stack Overflow’s total funding to $153M.
The new financing will be used to accelerate the company’s SaaS knowledge management and collaboration offering, Stack Overflow for Teams. The funding comes on the heels of the product’s significant momentum, with Stack Overflow for Teams’ revenue doubling every year since launching in 2017.
A collaboration platform for developers and technologists to break down silos and work asynchronously to ship products faster, accelerate onboarding, improve customer experience and drive innovation, Stack Overflow for Teams is used by thousands of companies including Bloomberg, Elastic, Expensify, Microsoft, Wix and Zapier. Stack Overflow for Teams is seeing rapid adoption as startups and large enterprises embrace platforms to streamline developer and technologist workflows and integrate tools for transparency, security and communication. Over 200,000 paid users across more than 5,000 teams use the platform across Engineering, Product Management, Data Science and Customer Support.
“This $85 million in new funding, fueled by the growth of Stack Overflow for Teams, allows Stack Overflow to scale rapidly, to accelerate our transformation into a leading SaaS company, to expand into new markets, and to continue to invest in our public platform and the community that is the foundation of our company,” said Stack Overflow CEO Prashanth Chandrasekar. As part of the recent financing, Chandrasekar will join the board of Stack Overflow. A senior leader and cloud veteran from Rackspace, he was appointed CEO of the company in October 2019.
COVID-19 has reshaped what the future of work looks like, with a recent Gartner poll showing that 48% of employees will likely work remotely at least part of the time after COVID-19 versus 30% before the pandemic. Stack Overflow for Teams addresses this emerging customer need by connecting distributed employees and enabling them to easily access a central source of knowledge to unlock information. Forrester’s The Total Economic Impact of Stack Overflow for Teams report found the product has an ROI of 179% for organizations that use it.
“Stack Overflow for Teams makes it easy for our developers to find the information they need quickly. It reduces the repetition of questions internally and eliminates cross-functional silos,” said Chris Thomas, Managing Director at Moody’s Analytics, a customer of Stack Overflow. “Stack Overflow for Teams helps us drive more collaboration and innovation at Moody's Analytics, especially as we've gone fully remote.”