Funding round
RingCentral Series A
RingCentral, which works in cloud communication solutions development in Belmont, raised $40M in a Series A round announced on 25 Jun 2020, led by Institutional Venture Partners. 6 firms took part, 4 of them already investors. It is RingCentral's first venture round on record.
$40M
Amount raised
Not disclosed
Post-money valuation
6
Investors
1 lead
Valuation
What this round says about the price
RingCentral did not disclose a valuation in this round. It is RingCentral's first venture round on record, 21 years after it was founded in 1999. It is 3.9% of the $1.01B RingCentral has raised in the venture rounds on record. RingCentral raised again 5 months later: a Series B round of $125M in Nov 2020, at $2.13B post-money.
RingCentral's funding rounds
RingCentral has 4 venture rounds on record. This one is highlighted.
- Series A this round 25 Jun 2020, led by Institutional Venture Partners $40M
- Series B 10 Nov 2020, led by Institutional Venture Partners and Tiger Global $125M$2.13B post-money
- Series C 4 Mar 2021, led by Andreessen Horowitz and General Catalyst $400M$5.65B post-money
- Series D 1 Aug 2021, led by Arena Holdings and Altimeter $450M$7.75B post-money
Investors
Who put money in
Institutional Venture Partners led the round with 5 other firms. Accel, Northzone, Seedcamp and Slack Fund had backed RingCentral before.
Lead investor
- Institutional Venture Partners backs 109 venture-backed companies new investor
Also in the round
- Salesforce Ventures backs 314 venture-backed companies new investor
- Accel backs 581 venture-backed companies existing investor
- backs 104 venture-backed companies existing investor
- Seedcamp existing investor
- Slack Fund existing investor
Use of proceeds
What the money is for
According to the announcement, the money goes to scaling operations and working capital.
- Scaling operations
- Working capital
Comparable rounds
How it compares
1,223 Series A rounds in Tech Companies within a year either side disclosed an amount; the median was $10M, and this round was 4.0 times the median. The closest in time, other companies' Series A rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| ClickUp Tech Companies | 24 Jun 2020 | $35M | not disclosed | Craft Ventures |
| Tech Companies | 1 Jun 2020 | $22M | not disclosed | Andreessen Horowitz |
| Tech Companies | 16 Jun 2020 | $21M | not disclosed | GGV Capital and Gradient |
| Tech Companies | 16 Jun 2020 | $20M | not disclosed | Tenaya Capital |
| Tech Companies | 11 Jun 2020 | $18M | not disclosed | Nexus Venture Partners |
| Tech Companies | 4 Jun 2020 | $18M | not disclosed | Elephant and Mosaic Ventures |
| Tech Companies | 30 Jun 2020 | $18M | not disclosed | Mubadala Capital and Bpifrance |
| Tech Companies | 3 Jun 2020 | $17M | not disclosed | Barclays |
Sources
Where this comes from
Reported by 4 sources.
Questions
Frequently asked
How much did RingCentral raise in its Series A round?
RingCentral raised $40M in its Series A round, announced in Jun 2020.
Who led RingCentral's Series A round?
Institutional Venture Partners led it, with Salesforce Ventures, Accel, Northzone, Seedcamp and Slack Fund.
What was RingCentral's valuation at the Series A round?
It was not disclosed.
How does it compare with other Series A rounds in Tech Companies?
1,223 Series A rounds in Tech Companies within a year either side disclosed an amount; the median was $10M, and this round was 4.0 times the median.
Did RingCentral raise again after this round?
Yes: a Series B round in Nov 2020 of $125M at $2.13B post-money.