Digital experience startup and one of Atlanta’s latest unicorn companies FullStory Inc. has raised $24 million, according to a filing with the U.S. Securities and Exchange Commission.
Inside the deal: The investment was made by Permira, a European-based global investment firm, according to a company spokesperson. That firm also led FullStory's $103 million Series D round last year, which brought its valuation to $1.8 billion. Previous investors into the company also include Kleiner Perkins, GV, Stripes Group, Dell Technologies Capital, Salesforce Ventures and Glynn Capital. The latest raise brings the company’s total investment to at least $184 million.
Why it matters: It is uncommon for a company to raise around a quarter of the amount of a previous investment. The investment is likely for a specific purpose for the company such as upcoming acquisitions or a hiring spree, according to a source with market knowledge. Permira invested the additional capital at a premium to the company’s previous valuation last year, the spokesperson said.
The big picture: The investment comes as investors have largely pulled back from startups as they trade a focus on growth for profitability. That pullback has led fast-growing startups such as OneTrust and Terminus to lay off employees as they try to conserve cash. During the Covid-19 pandemic, the company’s digital analytics products saw an increase in demand as businesses began digitizing their operations and more consumers used online products. Companies focused on digital experiences could continue to see growth as companies increasingly rely on e-commerce or digital touchpoints for customers.
About the company: Founded by former Google engineers in 2014, FullStory provides insights into customers’ digital experiences by tracking and analyzing what users do on a website. It became the fourth Atlanta startup to hit unicorn status in 2021 along with scheduling startup Calendly, sales engagement platform Salesloft and crime surveillance startup Flock Safety. The company told Atlanta Inno last year that they would use their last funding round for an international expansion and hiring spree. Atlanta Inno has previously reported that the startup has over 3,100 customers — such as Chipotle, Peloton and Fidelity — in more than 60 countries and 300 employees.
What they’re saying: “Given current market conditions, FullStory felt that now was a very opportune time to take on additional capital to grow the business globally and cement our leadership position in DXI,” a spokesperson stated in an email.
