Unicorn Tackle Secures $100M Series C to Revolutionize Software Sales

Tackle.io Secures $100 Million in Series C Funding

Tackle.io, a startup headquartered in Idaho, which assists software businesses in selling through prominent cloud marketplaces like that of Amazon Web Services (AWS), has recently announced the completion of a $100 million Series C funding round. This investment was co-led by both Coatue and Andreessen Horowitz, with additional participation from Bessemer Venture Partners.

Achieving Unicorn Status

This Series C funding brings Tackle’s total raised capital to $148 million, simultaneously elevating the company to unicorn status with a valuation of $1.25 billion. Company documentation indicates this valuation represents a substantial increase compared to its previous Series B round, the valuation of which was not publicly disclosed at the time of its completion just nine months prior.

Strategic Allocation of Funds

Tackle intends to utilize the newly acquired funding to expedite the development of its product roadmap. Furthermore, the company plans to expand its go-to-market (GTM) teams, broaden its global presence, and continue driving innovation within its offerings.

Addressing a Core Challenge for Software Vendors

The company’s origins stem from a recognized pain point experienced by software entrepreneurs, as previously detailed by colleague Ron Miller. Tackle’s co-founder and CTO, Dillon Woods, observed that integrating products with the AWS marketplace consistently required significant engineering resources and time – typically months with multiple engineers dedicated to the task – and involved repetitive processes.

Simplifying Cloud Marketplace Integration

Tackle provides a solution enabling independent software vendors (ISVs) to efficiently list their products on major cloud marketplaces, including those operated by Amazon’s AWS, Microsoft’s Azure, Google Cloud Platform, and IBM’s Red Hat.

The Growing Importance of Cloud Marketplaces

According to Martin Casado of a16z, cloud marketplaces are evolving beyond simply another sales channel; they are rapidly becoming the primary channel for software sales. Casado, who joined Tackle’s board following his firm’s leadership in the Series B round, identifies Tackle as a leading force in this space. He stated that Tackle is the foremost provider facilitating software sales through the cloud.

Expanding Customer Base

Tackle’s customer base has grown from over 200 to 350 companies. Notable clients include AppDynamics, Auth0, CrowdStrike, Dell, GitLab, HashiCorp, Looker, McAfee, NewRelic, Okta, PagerDuty, Talend, and VMware.

A "Zero Engineering" Approach

The majority of Tackle’s clients are startups, though the company also serves larger corporations. A common thread among them is their focus on software development. Tackle’s “zero engineering” solution allows these companies to build and maintain marketplace integrations without diverting valuable resources from their core competencies. As Tackle puts it, software companies should concentrate on building software, not on the infrastructure required to sell it.

Customer Testimonial

Robson Grieve, CMO of low-code platform OutSystems, a Tackle customer, emphasizes the platform’s impact: “The Tackle Platform transforms leveraging Marketplaces into a strategic business decision, rather than a drain on product and engineering resources.”

Industry Validation

The increasing prevalence of selling through cloud marketplaces is further supported by industry analysis. Bessemer’s State of the Cloud 2021 report highlighted cloud marketplace adoption as a top-three best practice for go-to-market strategies. Bessemer has been an investor in Tackle since its seed round and led the $7.25 million Series A round in 2020.

Operational Best Practice

Battery Ventures, while not currently an investor in Tackle, also recognizes the importance of cloud marketplaces. Their State of the Open Cloud 2020 report identified leveraging these marketplaces as an operational best practice for customer discovery and engagement.

Marketplace Growth Projections

Tackle’s own State of the Cloud Marketplaces Report revealed that 67% of respondents planned to increase their investment in marketplaces as a go-to-market strategy in 2022. The report forecasts that cloud marketplaces will generate over $10 billion in revenue by the end of 2023, and exceed $50 billion by the end of 2025.

Shifting Sales Dynamics

The rise of cloud marketplaces reflects a broader shift in B2B sales, increasingly mirroring B2C models. This trend is a key factor driving investor confidence in Tackle. Coatue general partner David Schneider, who will join Tackle’s board as an observer, stated, “We believe Tackle is well-positioned to help all sellers accelerate their shift toward cloud marketplaces and digital selling.”

Future Growth and Expansion

While specific revenue figures remain undisclosed, Tackle reports a doubling of its Annual Recurring Revenue (ARR) in 2021. CEO John Jahnke anticipates “explosive growth” in 2022. The company has already significantly expanded its team, growing from 56 to 160 employees, and plans to double its headcount again in the coming year.