Testlio Bags $12M Raise to Evolve Software Testing
November 1, 2021
has closed $12 million in Series B financing. The round was led by
Spring Lake Equity Partners and was oversubscribed. It included
participation from Series A co-leads Altos Ventures and Vertex Ventures
US. With the round, Jeff Williams, Partner at Spring Lake Equity
Partners, joins the Testlio Board of Directors.
Demand for a more impactful approach to software testing has skyrocketed
with the unprecedented proliferation of digital technologies. Product
and engineering teams are under pressure to increase development
velocity and deliver exceptionally high-quality user experiences.
Testlio helps clients such as Fox, Microsoft, the NBA, Netflix, and SAP
release better products faster via burstable, on-demand testing on any
device, in any location, and in any language.
Testlio has exceeded a $20 million annualized revenue run rate this year
after previously raising only $7.5 million in Seed and Series A capital.
The company has increased revenue by 50 percent and employees by nearly
100 percent year-over-year. Testlio also delivered net income
profitability for 10 straight quarters. With an emphasis on purpose,
values, culture, and impact, Testlio has earned strong employee and
customer reviews resulting in a 4.9 rating on Glassdoor, 4.7 on G2 and a
75 NPS from its customers.
Without a need for extensive new funding, the Series B round was driven
by a balanced stakeholder approach, profound personal connections, and a
shared viewpoint on healthy capitalization. The new capital will be used
to expand client services, deepen platform capabilities, fuel brand
awareness, and drive geographic sales expansion. Additionally, the round
included secondary proceeds for veteran Testlio employees at all levels.
"Our clients deliver better digital experiences thanks to the networked
testing model. Further, it is clear to me that the demand for more
impactful software testing is hitting an inflection point," said Steve
Semelsberger, CEO of Testlio. "We are excited that Jeff Williams from
Spring Lake Equity Partners has joined the Testlio board of directors.
We considered multiple investors and wholeheartedly selected Jeff."
"Testlio is exactly the kind of company that Spring Lake Equity Partners
loves to work with: growing, capital efficient, innovating effectively,
and in the middle of a massive market," stated Williams. "We've been
impressed by the Testlio team over the last two years that we've gotten
to know them and we're bullish for what's ahead."
As Testlio continues to transform software testing and expand the
company, areas of investment include:
Services Practices: Testlio delivers functional, exploratory,
localization, livestream, regression, automation, and other software
testing capabilities. The Services team has grown by nearly 70% in the
last year. The company will invest more in Services leaders, processes,
practices, centers of excellence, and practitioners to support the
diverse needs of customers around the world.
Innovation: The Testlio Platform is a robust SaaS solution that enables
customers to receive burstable, flexible, fast, and efficient testing
experiences powered by an optimized mix of humans and machines. In the
last year, the platform team has tripled in size. Testlio will continue
to add engineers, designers, product managers, DevSecOps professionals,
AI/ML experts, and data scientists, investing aggressively in powerful
new capabilities, integrations, workflows, insights, and more.
Geographic Reach: In 2021, Testlio doubled the size of its salesforce
and built an expanded team in EMEA. Moving forward, Testlio will build
an APAC sales organization and add additional sales leadership, support,
and capacity to meet unprecedented global demand.
Brand Awareness: Historically, Testlio has spent little on marketing.
Going forward the company will ratchet up program investments and add
new marketing capabilities to reach more organizations that need a
better approach to quality.
"We've believed in the Testlio business model since we co-led the Series
A round," said Anthony Lee, Managing Director at Altos Ventures. "As
global investors, we especially love how Testlio has built a team that
is distributed-by-design, including freelancers in over 150 countries."
"Vertex looks for mavericks and innovators who see the world
differently," said Insik Rhee, General Partner at Vertex Ventures US.
"We're inspired by the evolution of Testlio's SaaS platform. Their
fusion of humans and technology is key to creating better digital