PassiveLogic activated $16M Series A financing
21 Oct, 2020
Temporal Technologies, a company founded in 2019 and Headquartered in the Greater Seattle Area in the US with 14 employees as of October 2020, that develops its open-source microservices orchestration platform for running mission-critical code at any scale, has secured $18.75M Round A funding from Sequoia Capital, Madrona Venture Group, Amplify Partners, Addition, getting the total amount of investments made in it to $25.5M from 4 investors. The financing will go to grow its existing open source community and develop a Temporal cloud offering.
The founders of the startup are developers of the Cadence project (an open-source project at Uber Technologies Inc.). The success of Cadence made them think of their own full-fledged business in the industry. They are the only developers offering the end-to-end- process visibility to control data better and, what is more important, recognizing and working out errors appearing. This approach helped the founders to attract such a VC giant as Sequoia Capital. Bogomil Balkansky, who has been structuring the deal, is very impressed with the results of Temporal. Mr. Balkansky was a VP at Google leading its market activities for recruiting-related products; before Google, he was an early employee at Bebop, an enterprise applications startup acquired by Google. He will no doubt become a great source of expertise and new user acquiring for Temporal. It is not a surprise, that MVG and AP joined the Round. MVG declares one of its focuses on the infrastructure sector, and they mostly invested in this area. AP’s motto declares it is “solving technical problems for the enterprise”. Microservices orchestration provides teams with scalability and flexibility without the extra cost of developers’ time, so all their portfolio companies would be happy to integrate Temporal’s solution. Addition also took part in the Round. It does not have a specific industry focus as its main strategy is to support “visionary entrepreneurs on their journey to build impactful and enduring businesses”. The participation of this fund is actually a public recognition that Temporal is not just a startup, but will make a great impact on the industry to change it for the better.
Currently, the startup does not generate revenue. As an open-source project, they won such respected companies as Snap, Box, Coinbase, and Checkr. After the development of its cloud platform, Temporal will get revenue from the hosted services. This deal is also actively discussed by Snowflake’s CEO Bob Muglia (the company recently ran the largest IPO among software companies). We can try to interpret it as a prospective partnership of the two companies following a merge or an investment in the next Round. No doubt, Temporal will receive more funding from the existing investors, SC and MVG, that usually invest in the late-stage Rounds and have a very high follow-on index. Similarly, another fund, Amplify Partners, has also a high follow-on index, but does not feel that comfortable in the late-stage Rounds; nevertheless AP can participate as a pro-rata investor, as it was the lead investor in the previous Temporal’s Round while its lead activity is almost none to zero.