Australian user research software company Dovetail announced today that it has closed a $63 million Series A led by Accel. The company has now raised just over $70 million in total, and it added its new capital at a valuation that it describes as “north” of $700 million.
As you can tell by the numbers, this is no ordinary Series A. Instead, it’s a late-stage investment of sorts by Accel, a venture capital firm that has a history of making large investments into technology companies that have raised little capital or self-funded until they raise, later in life, a large check.
Given that the Dovetail round is not our standard Series A fare, let’s take moment and talk through the deal, starting with the company’s early history and what’s it’s building.
TechCrunch spoke with Dovetail co-founder and CEO Benjamin Humphrey about the capital raise, turning the clock back to the start of the company itself. Per Humphrey, after a stint in the Bay Area working for a technology company, the New Zealander joined Atlassian in Australia, where he stayed for a multi-year tenure. After that, he co-founded Dovetail without the intention of raising venture capital, instead of planning to build the company along the lines of Buffer and Basecamp, well-known technology firms that have pursued a more self-funded approach to growth.
The company’s focus on building software for the user research market might sound niche, but Dovetail found enough traction in its early days to scale to a team of six with around a half-million dollars in annual revenue under its own power. At that point, however, Humphrey said, venture investors were approaching the firm, so Dovetail raised a modest round of around AUD$5 million back in 2019.
To read more click here