$12 million round builds on strong revenue performance and
multiple quarters of profitability
October 26, 2021 — Testlio, the originator of networked testing, today announced that it has closed $12 million in Series B financing. The round was led by Spring Lake Equity Partners and was oversubscribed. It included participation from Series A co-leads Altos Ventures and Vertex Ventures US. With the round, Jeff Williams, Partner at Spring Lake Equity Partners, joins the Testlio Board of Directors.
Demand for a more impactful approach to software testing has skyrocketed with the unprecedented proliferation of digital technologies. Product and engineering teams are under pressure to increase development velocity and deliver exceptionally high-quality user experiences. Testlio helps clients such as Fox, Microsoft, the NBA, Netflix, and SAP release better products faster via burstable, on-demand testing on any device, in any location, and in any language.
Testlio has exceeded a $20 million annualized revenue run rate this year after previously raising only $7.5 million in Seed and Series A capital. The company has increased revenue by 50 percent and employees by nearly 100 percent year-over-year. Testlio also delivered net income profitability for 10 straight quarters. With an emphasis on purpose, values, culture, and impact, Testlio has earned strong employee and customer reviews resulting in a 4.9 rating on Glassdoor, 4.7 on G2 and a 75 NPS from its customers.
Without a need for extensive new funding, the Series B round was driven by a balanced stakeholder approach, profound personal connections, and a shared viewpoint on healthy capitalization. The new capital will be used to expand client services, deepen platform capabilities, fuel brand awareness, and drive geographic sales expansion. Additionally, the round included secondary proceeds for veteran Testlio employees at all levels.
“Our clients deliver better digital experiences thanks to the networked testing model. Further, it is clear to me that the demand for more impactful software testing is hitting an inflection point,” said Steve Semelsberger, CEO of Testlio. “We are excited that Jeff Williams from Spring Lake Equity Partners has joined the Testlio board of directors. We considered multiple investors and wholeheartedly selected Jeff.”
“Testlio is exactly the kind of company that Spring Lake Equity Partners loves to work with: growing, capital efficient, innovating effectively, and in the middle of a massive market,” stated Williams. “We’ve been impressed by the Testlio team over the last two years that we’ve gotten to know them and we’re bullish for what’s ahead.”
As Testlio continues to transform software testing and expand the company, areas of investment include:
- Services Practices: Testlio delivers functional, exploratory, localization, livestream, regression, automation, and other software testing capabilities. The Services team has grown by nearly 70% in the last year. The company will invest more in Services leaders, processes, practices, centers of excellence, and practitioners to support the diverse needs of customers around the world.
- Platform Innovation: The Testlio Platform is a robust SaaS solution that enables customers to receive burstable, flexible, fast, and efficient testing experiences powered by an optimized mix of humans and machines. In the last year, the platform team has tripled in size. Testlio will continue to add engineers, designers, product managers, DevSecOps professionals, AI/ML experts, and data scientists, investing aggressively in powerful new capabilities, integrations, workflows, insights, and more.
- Geographic Reach: In 2021, Testlio doubled the size of its salesforce and built an expanded team in EMEA. Moving forward, Testlio will build an APAC sales organization and add additional sales leadership, support, and capacity to meet unprecedented global demand.
- Brand Awareness: Historically, Testlio has spent little on marketing. Going forward the company will ratchet up program investments and add new marketing capabilities to reach more organizations that need a better approach to quality.
“We’ve believed in the Testlio business model since we co-led the Series A round,” said Anthony Lee, Managing Director at Altos Ventures. “As global investors, we especially love how Testlio has built a team that is distributed-by-design, including freelancers in over 150 countries.”
“Vertex looks for mavericks and innovators who see the world differently,” said Insik Rhee, General Partner at Vertex Ventures US. “We’re inspired by the evolution of Testlio’s SaaS platform. Their fusion of humans and technology is key to creating better digital experiences.”
Testlio is the originator of networked testing. Our award-winning combination of platform, freelancers, and services enables you to deliver great customer experiences — fast. In any location. On any device. In any language. The company is distributed by design, with employees around the world and freelancers in over 150 countries. Clients include Amazon, American Express, Fox, Microsoft, Netflix, the NBA, SAP, ViacomCBS and many more. Collectively, they have awarded us an industry-leading 4.7 G2 rating and an NPS of 75. To learn more, visit testlio.com.
About Spring Lake Equity Partners
Spring Lake Equity Partners is a Boston-based growth equity firm. The firm invests equity capital primarily in later-stage, technology-oriented private companies in software, digital media, mobile, data center infrastructure, healthcare IT, and business/financial services. Spring Lake seeks to partner with great management teams to take their businesses to the next level, creating value for all stakeholders. To learn more please visit springlakeequitypartners.com.
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