Enterprise Weekly #422: Enterprise Spend Grows, Spring Health's $2.5B Valuation, and More
According to a new Gartner forecast, global public cloud spend is predicted to grow almost 28% to $597B in 2023, up from $491B in 2022. Gartner says generative AI plays a large part in this growth as cloud offers a scalable solution to the booming large language model (LLM) market, which requires powerful computing capabilities to process data in real-time.
Similarly, back in January, Gartner predicted growth for global IT spend for the year. With enterprise spend seemingly increasing…why has the market been so challenging for vendors?
Don’t get us wrong, enterprise customers are cutting costs where they can. However, it’s often legacy and on-prem vendors with bloated contracts and slow product innovation that are on the chopping block. This benefits scaling startups as the need for cost savings has opened buyers eyes to what else is in the market. So, if a startup is mature enough to address a specific pain point at scale, they have a fighting chance to win.
That said, it’s still a tough environment out there. Sales cycles have grown longer as enterprise customers need more time to diligence and build strong internal use cases around purchasing decisions. To all the sales leaders out there, keep on grinding!
On another note, bugs were crawling all over the place this week 🐜
On Sunday, Netflix failed to live stream its ‘Love Is Blind’ reunion episode, blaming a “technical glitch” that bubbled up during the Chris Rock comedy special live stream last month. The company said that it missed the bug during routine checks given they weren’t run under real-life circumstances with multiple systems interacting with each other under the load of millions of viewers.
On Tuesday morning, Southwest Airlines temporarily grounded flights across the US after a firewall unexpectedly lost connection to some of its operational data. After the airline’s winter disaster, many continue to criticize the company for cheaping out on much needed software updates.
Lastly, huge congratulations to our portfolio company Spring Health on their $71M fundraise at a $2.5B valuation! Besides the rare step up in valuation during such a challenging macroenvironment, the company experienced phenomenal growth in 2022 with new customers including Microsoft, The Hershey Company, JB Hunt, Bumble, and Fujifilm. With last year’s JAMA Open Study demonstrating that the Spring approach creates superior financial and clinical outcomes, the return on investment for their customers is indisputable.
We’re excited to hear about the incredible journey when CEO and Co-Founder April Koh takes the stage at our Womenterprise Summit on Wednesday.
💻 Go to more events:
April 24th-25th: Meet Work-Bench Cybersecurity Investor Kelley Mak at RSA (in-person, SF)
April 25th: Winning Pricing Strategies During a Downturn (virtual)
May 2nd: Sales Masterclass: A Formula For Pitching CIOs with 7x CIO Mark Settle (virtual)
May 3rd: How to Validate Your MVP (in-person, NYC)
📚 Read more news:
Crunchbase: Series C Isn’t What It Used To Be
Business Insider: The Real Reason Bosses Are Freaked Out By Remote Work
TechCrunch: FTC Warns That AI Technology Like ChatGPT Could ‘Turbocharge’ Fraud
The Information: Tiger Global Management’s $12.7 Billion Venture Fund Records 20% Loss
WSJ: Coding Tools for Novice Programmers and Business Users Get ChatGPT Tech Boost
Company: Spring Health
Role: Senior Customer Success Manager
Technology: Mental Healthcare
Funding: $366M from Work-Bench, Northzone, Rethink, Kinnevik, Tiger Global
🌟 Company of the Week 🌟
Oblivious raises $5.8M led by Cavalry Ventures
Data / AI / Machine Learning • Seed • Dublin, Ireland
Founder: Robert Pisarczyk (CEO), Jack Fitzsimons (CTO)
Inboxbooster raises $1M led by Y Combinator
Future of Work • Venture • San Francisco, CA
Intellia raises $1.5M led by Fatima Gobi Ventures
Future of Work • Series A • London, UK
Loopin raises $1.9M led by Angel Investors
Future of Work • Seed • Bristol, UK
Primo raises $3.4M led by Headline and GFC
Future of Work • Seed • Paris, France
Equipme raises $3.8M led by La Famiglia VC
Future of Work • Seed • Berlin, Germany
Mobb raises $5.4M led by Ariel Maislos
Risk / Security • Seed • Boston, MA
Floodlight raises $6.4M led by Aleph and 83 North
Future of Work • Seed • London, UK
Qdrant raises $7.5M led by Unusual Ventures
Infrastructure / Dev Tools • Seed • Berlin, Germany
Fluree raises $10M led by SineWave Ventures
Data / AI / Machine Learning • Series A • Winston-Salem, NC
Groundlight raises $10M led by Madrona
Data / AI / Machine Learning • Venture • Seattle, WA
Dasera raises $12M led by Storm Ventures
Data / AI / Machine Learning • Series A • Mountain View, CA
Trullion raises $15M led by Stepstone Group
Future of Work • Venture • New York, NY
Lexion raises $20M led by Point72 Ventures
Future of Work • Series B • Seattle, WA
Optable raises $20M led by Hearst Ventures
Data / AI / Machine Learning • Series A • Montreal, Canada
TaxCloud raises $20M led by Camber Partners
Future of Work • Venture • Norwalk, CT
Avalor raises $25M led by TCV
Risk / Security • Series A • Tel Aviv, Israel
SpecterOps raises $25M led by Decibel
Risk / Security • Series A • Seattle, WA
Paligo raises $29M led by GRO
Future of Work • Venture • Stockholm, Sweden
Clerkie raises $33M led by Left Lane Capital
Data / AI / Machine Learning • Series A • San Francisco, CA
Halcyon raises $44M led by SYN Ventures and Corner Ventures
Risk / Security • Series A • Austin, TX
Ditto raises $45M led by Acrew Capital
Data / AI / Machine Learning • Series A • San Francisco, CA
Safe Security raises $50M led by Sorenson Capital
Risk / Security • Series B • Palo Alto, CA
Weaviate raises $50M led by Index
Data / AI / Machine Learning • Series B • Amsterdam, Netherlands
Semgrep raises $53M led by Lightspeed Venture Partners
Risk / Security • Series C • San Francisco, CA
Huntress Labs Inc raises $60M led by JMI Equity Partners
Risk / Security • Series C • Ellicott City, MD
Coro raises $75M led by Energy Impact Partners
Risk / Security • Venture • Tel Aviv, Israel
CoreWeave raises $221M led by Magnetar Capital
Infrastructure / Dev Tools • Series B • Roseland, NJ