Cloud Marketplaces and the Challenges of Software Distribution

The leading cloud providers – Amazon, Microsoft, and Google – each operate a marketplace designed for software vendors to offer their products. While seemingly straightforward, listing software on these platforms proves to be more intricate than initially anticipated, demanding a comprehensive approach to both business and technical considerations.

Tackle Secures $35 Million in Series B Funding

Tackle, a startup focused on simplifying the process of deploying products to these cloud marketplaces, has announced a $35 million Series B funding round. Andreessen Horowitz spearheaded the investment, with participation from existing investor Bessemer Venture Partners. This brings the company’s total funding to $48.5 million.

The Problem Tackle Addresses

According to founder Dillon Woods, previous experiences highlighted the significant time and resources required to launch a product on the AWS marketplace. He observed a consistent pattern of duplicated effort across different organizations.

“In past roles, we repeatedly found ourselves performing the same tasks. It became clear that many others were likely facing the same challenges,” Woods explained. “Tackle was created with the goal of reducing deployment time to just one or two days, offering a no-code solution that shifts the focus from complex technical integration to strategic business decisions.”

Complexity Beyond Simple App Listing

Despite the perception of simplicity, Woods emphasizes the substantial complexity involved. The AWS user guide alone spans 700 pages. Beyond the technical aspects of configuring API calls, there are significant business considerations related to selling within the marketplace.

“The process extends far beyond the initial sale,” Woods clarified. “Handling upgrades, refunds, cancellations, and even overage charges all require further API integration. Tackle streamlines all of these processes for its users.”

Tackle’s Implementation Strategy

CEO John Jahnke describes a typical engagement starting with a single product on a single marketplace, serving as a proof of concept. Successful deployments then lead to expanded usage and broader adoption of the platform.

Growth and Transaction Volume

The company reports a tripling of annual recurring revenue (ARR), although the specific figure remains undisclosed. Tackle has also doubled its headcount and customer base, facilitating over $200 million in transactions across the three major cloud marketplaces.

Customer Base and Expansion Plans

While the exact customer count isn’t public, Jahnke confirms that hundreds of companies currently utilize the platform, including prominent names like Snowflake, GitHub, New Relic, and PagerDuty.

Currently employing 67 individuals across 25 states, Tackle intends to nearly double its workforce by the end of 2021. Jahnke stresses the importance of establishing a diverse and inclusive company culture during this period of rapid growth.

“The way we scale with this next increase in employees will shape the company’s future composition. Prioritizing diversity and inclusion now will ensure we continue to create opportunities for individuals regardless of location as we grow from 100 to 1,000 employees,” Jahnke stated.

Investor Perspective

Martin Casado, general partner at a16z, highlights the growing importance of cloud marketplaces as a sales channel. He believes Tackle is uniquely positioned to capitalize on this trend. “Cloud marketplaces are now a crucial channel for rapid and convenient software sales. Tackle is the leading solution for enabling companies to sell software through these platforms,” he commented.