Why We Co-Led ProdPerfect’s Seed Round
We are excited to announce that we’ve co-led a $2.6M Seed round in ProdPerfect with our friends at Fika Ventures.
We couldn’t be more excited to partner with Dan, Erik, and team around their vision of building a fundamental company in the testing space. Based on their revenue growth rate of 40% month over month, they’re off to a great start!
Over the last few years we’ve been looking at companies in the software testing space, but hadn’t found a company that possessed the right combination of team, vision, and solution. That changed when we met Dan and Erik. We’re excited to partner with them around their vision of building a fundamental company in the testing space.
A balanced founding team well suited for their market
When we connected with the Prodperfect by our friend (and The Eniac Network member) Zane Lackey, it was immediately apparent that they displayed some for the core attributes we look for in a founding team:
- Dan and Erik had worked closely together prior to founding ProdPerfect. Having already formed a basis for a strong working relationship is a significant signal for success as I recently discussed in our learning from investing in Anchor.
- By adding Wilson to their founding team, they also had excellent balance across the key areas needed for their type of company — product (Dan), go to market (Erik) and data science (Wilson).
- Finally, they had a very strong passion for the software testing space they were attacking (which is in the case of testing is relatively rare) and a deeply held vision around how they would disrupt this space. We call this having strong founder-market-fit.
The fundamental shift in testing ecosystem allows for new market leaders
One of the biggest macro trends in technology over the last 10 years is the evolution of developer tools that allow teams to create better products with fewer resources. Despite testing being a pivotal part of product development, VC investment in the space has been relatively low. This is mainly because testing has largely been a manual process executed by members of the engineering/QA teams or outsourced testing companies, but that is changing. Advances in ML are allowing for a software-centric approach that is faster and cheaper without the propensity for human error. ProdPerfect has built an elegant solution that leverages live usage data to fully automate the development and maintenance of browser-level end-to-end testing.
Early product-market fit
At Eniac our singular focus is leading seed rounds. Because of this strategy, we are usually investing in great teams who are pre-product-market fit. ProdPerfect is one of those rare investments where there is already strong market evidence of product-market fit. Between launching in May 2018 and our investment closing in November, ProdPerfect achieved revenue and customer traction rarely seen at the seed stage — With a 40% MoM growth rate, their revenue growth has continued to the point where they are already in the zone often associated with companies raising a series A. This traction by a strong/well-balanced team attacking a huge shifting market gave us the conviction to jump on board with ProdPerfect.
We look forward to being at their side as they build the next great company in the testing space.
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