TechDogs-"Finout Lands $18.5M for Cloud Cost Observability Platform, Enabling Companies to Design for Profitability"

Cloud

Finout Lands $18.5M for Cloud Cost Observability Platform, Enabling Companies to Design for Profitability

By Business Wire

Business Wire
Overall Rating

FinOps pioneer Finout enables Finance, DevOps and FinOps experts to make healthier, data-driven, business decisions that improve efficiency, pricing, budgeting and go-to-market strategy

Finout provides companies with a new suite of business intelligence and actionable insights such as cost-per-customer, gross-margin-per-customer and cost-per-feature


NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)--Finout, the FinOps (a portmanteau of “Finance” and “DevOps”) Certified Platform and a member of the FinOps Foundation, today announced the company has secured $18.5 million to date, closing a $14 million Series A led by Team8 Capital. The company’s previously unannounced $4.5M seed round was led by Pitango First.

Finout’s Series A round included participation from seed funding partners R Squared Ventures, Jibe Ventures and Seed Investor Ariel Maislos. Leading angel investors and toDay Ventures also participated in the seed round. The funding comes as Finout’s proprietary solution is in high demand, with an increasing number of cloud-enabled companies adopting its platform, such as WalkMe, Riskified, Hunters, Logz.io, Pixellot, Singular and Bigabid, among others.

The financing round will support Finout’s further disruption of the FinOps market, the ongoing expansion of its global team, and the release of even more advanced FinOps capabilities to help companies monitor, manage, and reduce their spend, empowering them to adapt to the current market landscape.

“The correction in the tech market has shifted focus from top-line growth to profitability, gross margins, unit economics and healthy business metrics for sustainable, long-term success. We’ve witnessed dozens of companies struggling to develop a solution to deal with the surge in usage-based cloud pricing, but nothing has been available – until now,” said, Co-Founder and Managing Partner at Team8, Liran Grinberg. “Managing cloud profitability is a board-level priority, which is why we’re so excited to lead this round. Finout is uniquely positioned to enable cost control across cloud platforms by providing an out-of-the-box solution that empowers the modern, cloud-based enterprise to achieve its FinOps goals.”

Usage-based cloud pricing is increasing - and the momentum isn’t slowing down

According to Openview Partners, adoption of usage-based pricing — rates calculated by usage rather than users — has doubled in four years and is expected to continue with 61% of software companies saying they plan to introduce it in the future.

As companies increasingly ditch traditional “seat-based” subscription models, they are facing a new set of challenges related to managing their cloud spend.

One “Mega-bill” for all cloud costs

Finout’s cloud cost management platform combines all invoices into one Mega-bill, enabling an unparalleled view of cloud spend — in minutes. It combines infrastructure services from cloud providers, data warehouses and CDNs including Amazon Web Services (AWS), Google Cloud Platform (GCP), Microsoft Azure, Datadog, Kubernetes, and Snowflake as well as middleware such as Stripe, Twilio and AuthO.

Once in the Mega-bill, every line-item can be attributed to its business role, feature, team and product using advanced assignment rules, and virtual tagging — using the most granular cost units including native agentless Kubernetes support. Finout can then correlate those costs to unit economics using external metrics and business data sources such as Datadog, Salesforce, Looker and more and even add revenue data to show profitability margins for each customer.

“We are seeing companies of all sizes using Finout to improve accountability,” said Roi Ravhon, co-founder & CEO of Finout. “In the long term, cost reduction happens at scale. If you cut usage costs by 20 percent, that’s admirable, but only a quick fix. To actually optimize costs and achieve better margins, businesses need to measure the cloud cost increase in relation to the business so they can make informed decisions and ensure that engineers take action.”

“In the midst of the COVID quarantine, we decided to lead Finout’s seed round 100% through Zoom because we saw the rise of FinOps happening all around us, and recognized the far-reaching potential of this new category being created,” said Eyal Niv, managing partner at Pitango First. “Finout’s ability to translate technology to business attribution, getting them all the way to cost per customer positioned them to be the exact solution we sought.”

Here's another interesting article on Cloud Compliance Software Decoded

About Finout

Finout is a modern, self-service cloud cost management and observability tool that provides FinOps unmatched business context into cloud environments. By correlating business metrics with cloud costs, Finout clients are empowered to make healthier business decisions that improve efficiency, pricing and go-to-market strategy. For more information, please visit: www.finout.io


Contacts

Denyse Dabrowski
Denyse@bospar.com

Like what you read? Head to the TechDogs homepage to find the latest tech content infused with drama and entertainment. We've got ArticlesWhite PapersCase StudiesReportsVideos and Events - the complete lot to help you Know Your World of Technology.

First published on Thu, Jun 16, 2022

Liked what you read? That’s only the tip of the tech iceberg!

Explore our vast collection of tech articles including introductory guides, product reviews, trends and more, stay up to date with the latest news, relish thought-provoking interviews and the hottest AI blogs, and tickle your funny bone with hilarious tech memes!

Plus, get access to branded insights from industry-leading global brands through informative white papers, engaging case studies, in-depth reports, enlightening videos and exciting events and webinars.

Dive into TechDogs' treasure trove today and Know Your World of technology like never before!

Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs’ members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs’ Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. All information / content found on TechDogs’ site may not necessarily be reviewed by individuals with the expertise to validate its completeness, accuracy and reliability.

Tags:

Finout FinOps Foundation Team8 Capital Pitango First Cloud Cost Management

Join The Discussion

- Promoted By TechDogs -

Are You Ready To Accelerate Your Cloud Migration And Data Modernization?
  • Dark
  • Light