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Product management startup Productboard has raised a $72 million Series C round, it announced on Thursday. This comes after it raised a $45 million Series B in January 2020.
The funding was led by Tiger Global Management with the company’s previous backers, which include Silicon Valley heavyweights like Index Ventures, Kleiner Perkins, Sequoia Capital, and Bessemer Venture Partners, also taking part. The company did not disclose the new valuation, but after its last raise, it was valued at an estimated $300 million, according to Pitchbook.
Andrew Reed, general partner at Sequoia Capital, told Insider he met the Productboard team about 18 months ago after hearing about the company through word-of-mouth. Several of Sequoia’s portfolio companies had been using its product.
“After hearing rave reviews from our portfolio companies and seeing the company working, we knew we wanted to invest,” said Reed, who has also backed Figma, Robinhood, Bird, and Loom. Sequoia invested in Productboard’s $45 million Series B round.
San Francisco-based Productboard develops software that helps companies determine which product features to prioritize based on customer feedback. While the premise behind the platform seems simple, many companies have traditionally gone without such a system, Hubert Palan, Productboard’s cofounder and CEO, told Insider.
“The fastest-growing companies today excel at digital product management, yet most companies lack a dedicated system of record for this foundational product collaboration,” Palan said.
Reed told Insider that Palan’s background as a former product manager gives Productboard an edge.
“He’s a founder who really gets the customer,” he said.
VCs named Productboard as a startup that would boom in 2020. And Reed believes it did just that — in large part because the pandemic made it more important than ever for companies to respond quickly to customers’ needs. The startup now counts more than 4,000 companies as customers, including Zoom, Microsoft, Disney, and UiPath.
Since it was founded in 2014, Productboard has raised $137 million, including this new round. The company said it will use the funds to add new features to the product and hire 100 employees in 2021, including expanding its Toronto office and opening a new office in Dublin.