AppDynamics Secures $20 Million in Series C Financing

AppDynamics, a provider of next-generation application performance management (APM (News - Alert)) solutions for mission-critical web applications, has secured $20 million in Series C financing led by Kleiner Perkins Caufield & Byers (KPCB).

The round also included participation from founding investors Greylock Partners and Lightspeed Venture Partners.

Officials with AppDynamics said that the funding will be used by the company to fuel growth, including the continued expansion of its engineering and sales teams to enable both groundbreaking product enhancements and aggressive new customer acquisition.

"We see AppDynamics as perfectly positioned to take advantage of a seismic shift in how web applications are being created and managed," said Matt Murphy, partner at Kleiner Perkins, in a statement.

Perkins said that applications are moving to distributed, cloud-based architectures, a sea change that is already having a tremendous impact on the operations and development teams responsible for performance and uptime.

He said that AppDynamics' phenomenal growth and success to date prove that they're well positioned to take advantage of this transformation and help companies manage these new types of business-critical applications.

“We're thrilled to be working with the outstanding AppDynamics team and contributing to the company's expansion plans for 2012 and beyond," said Perkins.

Jyoti Bansal, founder and CEO of AppDynamics said that cloud computing is a once-in-a-generation IT shift, and AppDynamics is rapidly becoming the management platform for IT teams to manage the operational complexities of cloud-based application architectures.

"The continued strong interest from top-tier investors is a great validation of our vision, our market opportunity, and our growth story,” said Bansal.

 “The support and expertise of Matt and the Kleiner Perkins team will be critical as we continue to expand our business," said Bansal.

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