Setting the Foundation
When RAC first met the Oomnitza team in mid 2017, they were a small but growing startup. They had raised a previous seed round, and in RAC’s discussions with the leadership team, we understood that they felt product-market fit had been identified and that the Company was ready to take on additional capital to start scaling the go-to-market effort.
At the time, the sales function was primarily led by the founders and early employees who were focused on proving their ability to scale. Ahead of a larger round, RAC’s non-dilutive growth capital allowed them to do just that – to invest in their growth without triggering a valuation event before they were ready.
We provided an initial investment in the form of revenue-based financing, which was used to make some early sales hires and augment their software platform for enterprise scale. As they set the stage for growth, we supported the team with hands-on assistance, including helping the team establish a customer success strategy to propel this unique business forward.
After the updated software platform was released, Oomnitza started to realize the fruits of that labor and revenue began to take-off. We continued to work closely with the team during this period, and in 2018, provided a second round of investment (alongside a co-investor that we introduced). This round was structured as a mix of revenue-based financing and convertible note, the former of which we invested exclusively and the latter which we participated in.
2019: Growth Acceleration
Following our initial investment rounds, Oomnitza’s growth started to take off. They began to record substantially net negative churn and nearly doubled their revenue in 2019. In our opinion, and we believe in their leadership’s view, the metrics began to demonstrate that the Oomnitza business model had become scalable and repeatable. The Company went to market to raise a new equity round and was able to secure a $12M Series A – which we co-led alongside lead investor Shasta Ventures.
Oomnitza continued its growth trajectory and made a series of senior-level hires during 2020 and early 2021. During this time, Jon Temple joined the RAC team and became an important advisor to Oomnitza and its executives. Jon worked closely with the Oomnitza team to help them refine their ideal customer profile and messaging, which positioned them as the leader in the Enterprise Technology Management space that they were creating.
The repositioning has resonated extremely well with enterprise customers, and Oomnitza has continued to grow.
A $20M Series B and a Long-Term Partnership
With their continued growth, Oomnitza raised a $20M Series B in August of 2021. RAC continued to back the company and participated on a pro-rata basis in the round, making it RAC’s fourth investment in the company.
Today, Oomnitza counts over 180 enterprise customers and has grown their team to over 100 employees. We’ve been privileged to have a front-row seat to their growth over these last five years and look forward to continuing to work with them in the future.
Oomnitza’s CTO, Udo Waibel, has also joined our Strategic Advisory Board as a mentor for our portfolio companies on matters including product strategy and creating a culture of innovation and customer focus. If you’d like to learn more about Riverside Acceleration Capital and the growth resources available to our portfolio, reach out to us at www.riverside.ac.
Case study should not be relied upon for investment decision making and should not be considered an offer or solicitation of securities or investment services. For informational purposes only and intended for General Partners or Management teams considering partnering with The Riverside Company. Portfolio company selected based on non-performance criteria.