Cloud Startup OutSystems’ $9.5 Billion Valuation Is Slashed In Half After New Funding Round
Summary
That implies a post-money valuation of 4.4 billion ($4.3 billion), which is 55% lower than the price tag on the prior February 2021 fundraise led by Tiger Global and Abdiel Capital.Around the time of the fundraise, OutSystems also issued a tender offer that allowed current employees to sell up to 25% of their shares at a price near the newly set valuation, according to the source.In a statement to Forbes, chief financial officer Tim McCarrick said the investment indicated KKRs continued confidence and support of our business and would reinforce its market position. Abdiel Capital did not return requests for comment at the time of publication.We believe OutSystems is well-positioned to continue to scale thanks to its focus on product innovation, KKRs John Park said in a statement. Park, who heads the firms North American private equity technology practice, is joining the board as part of the new fundraise.Founded in 2001 by Paulo Rosado, who remains CEO, OutSystems sells software that helps enterprises more easily build their own apps. It has signed on big name customers including Schneider Electric and Humana, as well as marquee investors Goldman Sachs and General Atlantic.The previously unreported financing for one of the worlds largest startups by valuation is the latest harbinger of a capital crunch in the market for private, growth-stage companies. Heading into 2022, an influx of VC investors had driven a bidding war across privately-backed tech that gave startups the leverage to dictate their preferred valuations.But in the wake of the downturn, firms such as Tiger Global which were particularly aggressive in boosting valuations have in some cases had to mark down their private investments.