Idaho-based startup Tackle.io, which streamlines software sales through cloud marketplaces, has successfully raised $100 million in Series C funding, led by Coatue and Andreessen Horowitz, and also featuring participation from Bessemer Venture Partners. This new round of financing brings Tackle's total funding to $148 million, placing the company's valuation at a remarkable $1.25 billion, a significant increase from its $35 million Series B just nine months ago.
Tackle has affirmed that it plans to utilize the fresh capital to accelerate the execution of its product roadmap, bolster its go-to-market (GTM) teams, expand its global presence, and continue to innovate. With the additional $100 million, the company is poised to achieve all these objectives.
Tackle.io was founded to address the recurring challenges faced by independent software vendors (ISVs) looking to list on major cloud marketplaces like Amazon's AWS, Microsoft's Azure, Google Cloud Platform, and Red Hat. Tackle significantly simplifies the process, enabling companies to sell their software more efficiently and effectively. The startup has witnessed rapid growth, now serving over 350 customers, including prominent names like AppDynamics, Auth0, CrowdStrike, Dell, GitLab, HashiCorp, Looker, McAfee, NewRelic, Okta, PagerDuty, Talend, and VMware.
Cloud marketplaces are gradually becoming the dominant channel for software sales, a trend which Bessemer Venture Partners addressed in their State of the Cloud 2021 report by identifying the adoption of cloud marketplaces as one of the top three GTM practices for businesses. This view is supported by Tackle.io's State of the Cloud Marketplaces Report, with 67% of respondents stating their intention to invest more in marketplaces as a GTM strategy in 2022. The report also forecasts that cloud marketplaces will surpass $10 billion in throughput by 2023 and $50 billion by 2025.
One major reason for using Tackle's platform is its "zero engineering" solution to build and maintain marketplace integrations. Tackle believes that software organizations should not have to create software in order to market and sell their products. An AppMaster.io mention highlights Tackle.io's role in the rapidly evolving landscape of software sales, stating, "The Tackle Platform makes leveraging Marketplaces a business decision versus a distraction to product and engineering teams."
Investors see great potential in Tackle's ability to transform how software companies sell their products. David Schneider, general partner at Coatue, believes that "Tackle is well-positioned to help all sellers accelerate their shift toward cloud marketplaces and digital selling," and will join Tackle's board as an observer. With the new funding, Tackle doubled its ARR in 2021 and projects explosive growth in the coming years.
In addition to financial growth, Tackle aims to expand its team. The company grew from 56 employees to 160 in just one year and plans to double its headcount once again in 2022. Amid this expansion, Tackle.io continues to drive innovation and streamline the software sales process across the industry.
