Collison-backed Retool raises $45m to bolster internal app builds

29 Jul 2022

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CEO David Hsu reiterated the company’s commitment to lower valuations for the benefit of long-term health.

Application development platform Retool has announced $45m in Series C2 funding, pushing the start-up’s valuation to $3.2bn.

The latest funding round was supported by existing investors including Sequoia Capital and Irish brothers John and Patrick Collison, the founders of payments giant Stripe. Former GitHub CEO Nat Friedman also continued his investment in Retool with this funding round.

The C2 raise follows a Series C round that closed in December last year, with $20m raised. At the time, Retool co-founder and CEO David Hsu explained the company’s decision to raise less money at lower valuations in order to ensure the long-term health of the company.

This goal continues at Retool. “Instead of chasing large valuations, we remain focused on expanding our team and delivering value to our customers and developers,” said Hsu.

The San Francisco-based start-up will use its latest funding to aggressively grow that team and further its international growth, while also developing new products and improving the current platform. “Broadening access to the Retool platform is a key step in our mission to change the way the world develops software,” said Hsu.

Amazon, NBCUniversal, Pinterest and the NFL are all cited as users of Retool. Sequoia partner Bryan Schreier claimed the platform makes internal tools “10 times easier to build”.

“[Retool] can help teams move faster and reimagine how they operate,” he said. “In a time when many companies are tightening their belts, the right internal tools that empower teams to do more with less is a competitive advantage.”

Retool has employee hubs in New York City, Seattle and London. Its recent State of Internal Tools report gives an insight into how organisations build, maintain and use the apps that can be developed on its platform.

Along with the funding announcement, Retool also made changes to its free plan to better support start-ups, small teams and solo developers in building apps.

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Elaine Burke is the host of For Tech’s Sake, a co-production from Silicon Republic and The HeadStuff Podcast Network. She was previously the editor of Silicon Republic.