Incredibuild Secures $140M to Accelerate Software Development

Distributed Computing Startup Incredibuild Secures $140 Million in Funding

A significant number of professionals currently operate within distributed work settings, and in many instances, this arrangement has actually enhanced productivity. Today, a company specializing in technology that leverages this concept for computing purposes is announcing a substantial funding round to accelerate its growth following a successful year.

Incredibuild's Funding and Core Technology

Incredibuild, an Israeli-based company, has secured $140 million in funding. The company provides a solution for organizations to implement a distributed computing architecture. This allows for faster processing of demanding tasks, such as software development, by utilizing idle CPU resources across a company’s network.

A Long-Standing, Yet Understated, Presence

Despite being founded in 2000, Incredibuild has maintained a relatively low profile. While it serves a substantial clientele, including major players like Epic Games (Fortnite), Microsoft, Nintendo, Amazon, Citibank, Adobe, Disney, Intel, and Samsung – totaling over 800 customers – it hasn’t been widely recognized.

The newly acquired funds will be allocated towards further development of the company’s technology and expansion of its business model to cater to a broader range of enterprises and applications.

Optimizing CPU Utilization and Reducing Costs

According to CEO Tami Mazel Shachar, Incredibuild’s core innovation lies in its ability to efficiently harness CPU power from computers within a network, irrespective of their location – whether on-premises or in the cloud. The service is priced based on usage, but Shachar asserts that it ultimately lowers a company’s overall computing expenses and can accelerate build times by up to 8X.

Currently, access to Incredibuild requires direct contact with the company for enrollment. Plans are underway to introduce tiered pricing options, including a freemium tier, to attract smaller developer teams.

Investment Details and Company Valuation

This financing round marks the first significant external investment in Incredibuild since its acquisition by private equity firm Fortissimo in 2018. The investment comes solely from Insight Partners and represents a partial spin-out of the business, effectively returning it to a startup phase. Sources indicate that Incredibuild was already generating substantial revenue, and its valuation is estimated to be between $300 million and $400 million.

Origins in the Israeli Military

Incredibuild was initially conceived by engineers Uri Mishol and Uri Shaham while serving in the Israeli army’s special forces. They recognized the need for faster processing times, even with advanced machinery. Both founders are no longer actively involved in the company’s day-to-day operations but continue to offer support.

Early Adoption and Expanding Use Cases

The company initially gained traction within the gaming industry, where the intensive use of media demanded significant code processing capabilities. Over time, it expanded to serve companies dealing with graphics, augmented reality (AR), virtual reality (VR), artificial intelligence, and other computationally intensive workloads.

Competitive Landscape

Numerous solutions are emerging to accelerate workloads, ranging from processor improvements to DevOps and workload management platforms like CircleCI and CloudBees. Distributed computing itself is not a novel concept, forming the foundation of peer-to-peer architectures like BitTorrent and blockchain technology.

Intellectual Property Strategy

Interestingly, Incredibuild does not currently hold any patents for its technology.

“The true value lies within the technology itself,” Shachar explained. “Replicating what we’ve built would require years of effort, and we are continually building upon our existing foundation.” The company is also focused on integrating with other platforms to enhance and broaden the applicability of its technology.

Focus on Private Networks and Future Developments

Currently, Incredibuild operates on networks of computers within specific user teams, with no plans to extend access to a wider, public network. Shachar cited privacy concerns as a primary reason for this approach.

However, she hinted at potential developments to leverage its technology for enhanced processing power for some of its current partners’ customers. The involvement of Microsoft (Azure) and Amazon (AWS) as clients makes future collaborations particularly noteworthy.

Insight Partners' Investment Rationale

Insight Partners has a strong portfolio in the DevOps space, including Docker and JFrog. Teddie Wardi, managing director at Insight Partners, stated, “We firmly believe that Incredibuild has built a crucial technology for any business that wants to develop better software, radically faster.” Wardi, along with Lonne Jaffe and Brad Fiedler, will be joining Incredibuild’s board of directors.

Fortissimo Capital's Continued Support

Fortissimo Capital will remain a shareholder in the company.

Yoav Hineman, Partner at Fortissimo Capital and board member of Incredibuild, commented, “Fortissimo bought Incredibuild in 2018 with belief in the enormous potential of distributed processing. The investment by Insight Partners is a great milestone in delivering unparalleled acceleration for software developers.”

Early Stage Event Announcement

Early Stage is the leading event for startup entrepreneurs and investors. Gain insights from successful founders and VCs on building businesses, raising capital, and managing portfolios. Sessions cover fundraising, recruiting, sales, product-market fit, PR, marketing, and brand building, with dedicated time for audience Q&A. Use code “TCARTICLE” at checkout for a 20% discount on tickets.