BuildBuddy, a company offering software designed to accelerate the code compilation and testing processes for developers through a combination of open-source resources and unique, internally developed tools, has revealed a recent funding achievement of $3.15 million. 

The organization participated in the Winter 2020 Y Combinator program, experiencing a shift from the customary in-person demo day to a completely online format in March. Following this, the startups within the group navigated the challenge of securing funding amidst significant volatility in public markets and a period of increased uncertainty in the venture capital landscape.

The successful funding round secured by BuildBuddy demonstrates that challenging economic circumstances and the transition to virtual presentations did not entirely suppress investor enthusiasm for the startups originating from YC’s March cohort. However, it remains too early to assess the long-term performance of this group compared to previous classes, considering the time required for promising startups to develop into successful acquisitions or IPOs.

Discussing the Technology

BuildBuddy’s development stems from the software engineering practices employed at Google. To understand its functionality, I spoke with co-founder Siggi Simonarson, a former employee of the Mountain View-based search company for just over five years.

During his time there, he became familiar with Google’s approach to software development, specifically utilizing its internal tool, Blaze, for code compilation. Simonarson explained to TechCrunch that Blaze is central to the workflow of Google’s developers. “Developers write code,” he stated, “then execute a Blaze build; they write more code, then run Blaze tests.”

A key characteristic of Blaze, as Simonarson described, is that, “unlike conventional language-specific build tools,” it operates independently of programming languages, enabling its use for “building projects in [any] programming language.”

Google made the core components of Blaze publicly available as Bazel, a rearrangement of the letters in the original name.

What is the function of BuildBuddy? Essentially, it is developing the components of Blaze that are available to Google engineers internally, and making them accessible to other developers who utilize Bazel. From a business perspective, BuildBuddy plans to provide its services without charge to individual developers, while charging businesses for its use.

Simonarson and his co-founder Tyler Williams began with a limited scope, creating a “results UI” tool that they shared with a Bazel user community. The tool quickly gained traction within several large organizations as members of the group adopted it.

This beginning highlights a significant advantage for BuildBuddy, one that many early-stage startups lack: clear evidence of demand within the enterprise market. Numerous large companies already rely on Bazel for software creation, and BuildBuddy secured early adoption among a few of them.

However, simply creating a helpful tool for a widely-used open-source project doesn’t automatically ensure success. Fortunately for BuildBuddy, its initial users provided valuable guidance for product development, leading the startup to implement the features most requested by its user base over the summer. 

Simonarson clarified that after external developers began using BuildBuddy, they requested additional functionalities, such as authentication. The co-founder noted that the team responded with “great enthusiasm!” This positive response also extended to requests for dashboarding and other features.

Notably, some of the requested features aligned with those the company intends to offer as paid services. This leads back to the topic of revenue and the recent funding round.

Money

BuildBuddy finalized its funding round in May, though the process wasn't straightforward, as is common with venture capital investments.

As Simonarson explains, his company began seeking funding during a period of significant market volatility early in the COVID-19 pandemic, when the stock market experienced substantial single-day declines. 

BuildBuddy initially aimed to secure $1.5 million in funding. Simonarson expressed concern at the time, noting it was his first fundraising experience and he was uncertain whether the startup would succeed in raising any capital given the prevailing conditions. 

However, the young company successfully obtained an initial investment of $100,000, followed by a $300,000 investment, ultimately completing the funding round.

The company’s funding ultimately exceeded the initial $1.5 million target, reaching just over $3 million, because an investor who contributed $300,000 expressed interest in investing an additional $2 million. After negotiations, the company secured $1.5 million from this investor at a higher valuation cap (BuildBuddy utilized a SAFE agreement), finalizing the deal under those terms.

Initially, the startup wasn’t seeking additional funds, but Simonarson shared with TechCrunch that the future of the fundraising landscape was unclear at the time. BuildBuddy raised capital during a period when startup layoffs were prominent news, and a resurgence in frequent VC funding rounds was still some time away. 

Consequently, BuildBuddy secured $3.15 million to support its current team of four. The company plans to expand its workforce, shorten its substantial runway, and continue developing its service centered around Bazel.

A review of the investor list provided by BuildBuddy – a testament to the startup’s thoroughness – reveals participation from Y Combinator, Addition, Scribble and Village Global, among others.

Development tools are currently in high demand. Therefore, I anticipate further updates from BuildBuddy as its Annual Recurring Revenue (ARR) begins to grow.