Mural Secures $50M Series C Funding - Rapid Growth

Mural Secures $50 Million in Series C Funding

Mural, the digital collaboration platform specializing in visual workspaces, has announced the successful completion of a $50 million Series C funding round. This latest investment was jointly led by existing investors Insight Partners and Tiger Global, bringing the company’s valuation to over $2 billion.

Previous Funding Rounds

Prior to this, Mural achieved a valuation of approximately $500 million following a $118 million funding round concluded last August. The company had also secured $23 million in Series A funding in early 2020.

The Rise of Visual Collaboration

Mural’s core offering centers around a digital, visual collaboration environment, functioning much like an online whiteboard. The platform experienced significant growth during the shift to remote work spurred by the COVID-19 pandemic, as organizations sought alternatives to traditional, physical whiteboards.

TechCrunch spoke with Mural CEO Mariano Suarez-Battan and Insight managing director Nikhil Sachdev to gain insights into the details of this funding deal.

Key Growth Metrics

The company reports a tripling of customers generating $100,000 in Annual Recurring Revenue (ARR), now exceeding 100 organizations. Furthermore, Mural now boasts seven customers contributing at least $1,000,000 in ARR annually.

This represents a substantial increase from the “couple” of seven-figure deals the company had at the beginning of 2020, as previously disclosed during its Series A round.

Sustained Growth and Scalability

According to Suarez-Battan, Mural has maintained a rapid growth trajectory since its breakout year in 2020. The company has tripled its ARR within the last year, mirroring the growth rate reported during its Series B funding in Q3 2020.

This consistent tripling in revenue suggests that Mural has reached a significant scale in terms of its top-line performance.

Beyond the Pandemic

Despite its growth being accelerated by the pandemic, Mural believes its long-term prospects remain strong. Suarez-Battan highlighted that many of its customers operate across multiple, geographically dispersed locations.

Even with a potential return to fully in-office work, the need for tools like Mural will persist, facilitating collaboration among teams in different locations.

The Future of Work

The increasing adoption of hybrid work models, part-time office arrangements, and fully remote structures is driving demand for Mural’s collaborative solutions.

The platform enables creative collaboration without the constraints of physical proximity, aligning with a broader trend toward remote work that Sachdev describes as being accelerated, rather than created, by COVID-19.

Funding Details and Valuation

The $50 million Series C raise is smaller than the previous Series B round due to the company retaining a substantial portion of its prior funding. Sachdev explained that Mural simply did not require a larger capital injection at this time.

The funding event resulted in minimal dilution for Mural (selling approximately 4% of its shares) and a significant increase in valuation – nearly four times its previous valuation.

Efficiency and Retention

Tiger and Insight’s continued investment reflects Mural’s ability to scale efficiently, maintaining revenue growth while managing cash consumption effectively. This is a key indicator of strong operational leverage.

Suarez-Battan also emphasized the company’s strong net dollar retention (NDR), a crucial metric for software companies, indicating the ability to generate increased revenue from existing customers at a lower cost than acquiring new ones.

Looking Ahead

There are numerous aspects of Mural’s business model worthy of further examination, including its relationships with consulting firms and their impact on customer acquisition.

The company’s continued growth throughout the second half of 2021 will be closely monitored, with a focus on concrete revenue figures.