Quite the experience as Qualtrics raises $180m in major funding round

12 Apr 2017

Qualtrics co-founder and CEO Ryan Smith. Image: Qualtrics

Funding is a huge leap forward for experience management tech firm.

Qualtrics has closed a $180m funding round, valuing the company at $2.5bn.

The funding round was led by Insight Venture Partners and Accel, with participation from Sequoia Capital, and increases Qualtrics’ valuation by a factor of two and a half.

‘Our investors doubling down is a huge sign of their confidence in the team and the amazing growth ahead of us with experience management’

The funding follows the launch of Qualtrics’ XM Platform, which manages customer, employee, product and brand experiences in the one place.

The company employs nearly 200 people at its Dublin office with another 30 across Europe. Qualtrics’ European customers include Allianz, Adidas, Belron, Bord Gáis, Ferrari, ING, Porsche, Telenor and Three Ireland, as well as more than half of Europe’s top 100 universities.

Qualtrics was founded in Utah by Ryan Smith, Jared Smith, Scott Smith and Stuart Orgill.

“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,” said Ryan.

“This raise is a great step forward for everyone involved.

“Our investors doubling down is a huge sign of their confidence in the team and the amazing growth ahead of us with experience management.”

The new forces driving business software

This investment also makes Qualtrics the single largest aggregate investment in the history of Accel’s portfolio.

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. Atlassian acquired project software company Trello for $425m (mostly in cash) in January.

“We have been following Qualtrics since 2010,” said Ryan Sweeney, partner at Accel and Qualtrics board member.

“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.

“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,” Sweeney said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years