Frontegg Raises $25 Million to Accelerate Product-Led Growth Adoption for SaaS Applications
TEL AVIV, Israel, Dec. 1, 2021 /PRNewswire/ -- Frontegg, the modern user management platform for the Product-led era, announced today a $25 million Series A funding round led by New York-based global venture capital and private equity firm Insight Partners, with participation from existing seed investors Pitango First and Global Founders Capital. This investment, which brings Frontegg's total funding to $30 million, will support the company's rapid growth as it scales its platform and accelerates global expansion.
In a recent report by OpenView, four out of five SaaS companies surveyed said they had adopted product-led tactics. The benefits of embracing Product-Led Growth (PLG) are apparent, as according to OpenView, companies in its PLG Index trade at a 50% premium compared to companies in the broader SaaS index.
Product-led companies have unique user management requirements, including a passwordless signup experience, advanced subscription enforcement controls and seamless self-service administration, as well as enterprise-readiness capabilities such as SSO, security policies and audit logs. "I've seen firsthand how building out self-serve user management capabilities can divert critical engineering resources away from developing the core product, becoming an innovation blocker," said Sagi Rodin, CEO and Co-Founder of Frontegg.
With the Frontegg platform, companies can easily implement comprehensive user management that meets the necessary requirements for PLG. The secure and scalable solution can be quickly integrated into any product with just a few lines of code, with support for all popular frontend and backend frameworks. Frontegg's user management infrastructure is already used by dozens of fast-growing companies, including Materialize, Pay.com, Medigate, Talon Cyber Security and Hunters.AI.
"When building a self-service product, something that sounds simple is often in fact very complex behind the scenes," said Arjun Narayan, CEO and Co-Founder of Materialize. "We're focused on building a great self-service product for the long term — but also need to move quickly. We identified Frontegg as the best solution to make the complexity of user management a turnkey solution. Frontegg is the only product in the market that supports enterprise readiness features like multi-tenant SSO and self-service access control management."
"In the product-led era, the ever-evolving demands of users and their expectations for a whole set of self-served capabilities within apps are resulting in a continuous drain on engineering resources," said Praveen Akkiraju, Managing Director at Insight Partners. "The Frontegg team has built a unique solution that handles the heavy lifting of User Management, allowing teams to remain laser-focused on their core product and mission. Using Frontegg, teams can get their products to market faster with a mature, enterprise-ready offering, and then continue to ship invaluable features for their end-users quarter after quarter." Akkiraju is joining Frontegg's board.
"The velocity at which Frontegg's platform has been adopted is outstanding. It's the critical infrastructure that is already powering many exciting startups and fast-growing companies. This is a testament to the huge value that this platform is generating and we are excited to be a part of it," said Ayal Itzkovitz, Managing Partner at Pitango First.
Frontegg provides user management capabilities for modern applications. It empowers software teams with user infrastructure features for the product-led era, from fundamental authentication flows to the most complex customer-facing capabilities. Since its founding in 2019 by Sagi Rodin (CEO) and Aviad Mizrachi (CTO), Frontegg has raised $30M from top-tier global VCs Insight Partners, Pitango First, i3 Equity and Global Founders Capital, and is currently used by dozens of fast-growing companies around the globe.
About Insight Partners
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight's mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.