Funding round
RingCentral Series B
RingCentral, which works in cloud communication solutions development in Belmont, raised $125M in a Series B round announced on 10 Nov 2020, led by Institutional Venture Partners and Tiger Global, at a $2.13B post-money valuation. 8 firms took part, 5 of them already investors. It is RingCentral's second venture round on record; the one before was a Series A in Jun 2020.
$125M
Amount raised
$2.13B
Post-money valuation
8
Investors
2 leads
5.9%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced RingCentral at $2.13B after the new money. The $125M bought investors about 5.9% of the company. It came 5 months after RingCentral's Series A. It is 12% of the $1.01B RingCentral has raised in the venture rounds on record. RingCentral raised again 4 months later: a Series C round of $400M in Mar 2021, at $5.65B post-money.
RingCentral's funding rounds
RingCentral has 4 venture rounds on record. This one is highlighted.
- Series A 25 Jun 2020, led by Institutional Venture Partners $40M
- Series B this round 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 and Tiger Global led the round with 6 other firms. Institutional Venture Partners, Accel, Northzone and Salesforce Ventures and 1 more had backed RingCentral before.
Lead investors
- Institutional Venture Partners backs 109 venture-backed companies existing investor
- Tiger Global new investor
Also in the round
- Coatue backs 229 venture-backed companies new investor
- DFJ Growth backs 51 venture-backed companies new investor
- Accel backs 581 venture-backed companies existing investor
- backs 104 venture-backed companies existing investor
- Salesforce Ventures backs 314 venture-backed companies existing investor
- Seedcamp existing investor
Use of proceeds
What the money is for
According to the announcement, the money goes to hiring, product development, geographic expansion, sales and marketing, scaling operations and working capital.
- Hiring
- Product development
- Geographic expansion
- Sales and marketing
- Scaling operations
- Working capital
Comparable rounds
How it compares
771 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $30M, and this round was 4.2 times the median. The closest in time, other companies' Series B rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Tech Companies | 19 Nov 2020 | $55M | not disclosed | Cathay Innovation |
| Abnormal AI Tech Companies | 18 Nov 2020 | $50M | $500M | Menlo Ventures |
| Tech Companies | 17 Nov 2020 | $50M | not disclosed | Sapphire Ventures |
| Aurora Solar Tech Companies | 30 Nov 2020 | $50M | not disclosed | ICONIQ Capital |
| Tech Companies | 24 Nov 2020 | $45M | not disclosed | Koch Disruptive Technologies |
| Tech Companies | 16 Nov 2020 | $43M | not disclosed | Hillhouse |
| Tech Companies | 18 Nov 2020 | $35M | not disclosed | Insight Partners |
| Tech Companies | 10 Nov 2020 | $34M | not disclosed | not named |
Sources
Where this comes from
Reported by 7 sources.
Questions
Frequently asked
How much did RingCentral raise in its Series B round?
RingCentral raised $125M in its Series B round, announced in Nov 2020.
Who led RingCentral's Series B round?
Institutional Venture Partners and Tiger Global led it, with Coatue, DFJ Growth, Accel, Northzone and Salesforce Ventures and 1 more.
What was RingCentral's valuation at the Series B round?
$2.13B post-money.
How does it compare with other Series B rounds in Tech Companies?
771 Series B rounds in Tech Companies within a year either side disclosed an amount; the median was $30M, and this round was 4.2 times the median.
Did RingCentral raise again after this round?
Yes: a Series C round in Mar 2021 of $400M at $5.65B post-money.