Funding round
RingCentral Series C
RingCentral, which works in cloud communication solutions development in Belmont, raised $400M in a Series C round announced on 4 Mar 2021, led by Andreessen Horowitz and General Catalyst, at a $5.65B post-money valuation. 8 firms took part, 6 of them already investors. It is RingCentral's third venture round on record; the one before was a Series B in Nov 2020.
$400M
Amount raised
$5.65B
Post-money valuation
$5.25B pre-money
8
Investors
2 leads
2.7x
Step-up from the Series B
$2.13B in Nov 2020
7.1%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced RingCentral at $5.65B after the new money, 2.7 times the $2.13B of its Series B (Nov 2020). The $400M bought investors about 7.1% of the company. It came 4 months after RingCentral's Series B. It is 39% of the $1.01B RingCentral has raised in the venture rounds on record. RingCentral raised again 5 months later: a Series D round of $450M in Aug 2021, at $7.75B 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 10 Nov 2020, led by Institutional Venture Partners and Tiger Global $125M$2.13B post-money
- Series C this round 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
Andreessen Horowitz and General Catalyst led the round with 6 other firms. Institutional Venture Partners, Salesforce Ventures, Tiger Global and Northzone and 2 more had backed RingCentral before.
Lead investors
- Andreessen Horowitz backs 722 venture-backed companies new investor
- General Catalyst backs 574 venture-backed companies new investor
Also in the round
- Institutional Venture Partners backs 109 venture-backed companies existing investor
- Salesforce Ventures backs 314 venture-backed companies existing investor
- Tiger Global backs 391 venture-backed companies existing investor
- backs 104 venture-backed companies existing investor
- Coatue backs 229 venture-backed companies existing investor
- DFJ Growth backs 51 venture-backed companies existing investor
Joined the board: Sriram Krishnan (Andreessen Horowitz).
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
467 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $60M, and this round was 6.7 times the median. The closest in time, other companies' Series C rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| HighRadius Tech Companies | 30 Mar 2021 | $300M | $3.10B | D1 Capital Partners and Tiger Global Management |
| Dutchie Tech Companies | 16 Mar 2021 | $200M | $1.70B | Tiger Global |
| Tech Companies | 25 Mar 2021 | $200M | not disclosed | KKR and Yuan Jing Capital |
| Tech Companies | 16 Mar 2021 | $150M | $1.60B | ICONIQ Growth |
| Tech Companies | 9 Mar 2021 | $125M | not disclosed | KKR and Casdin Capital |
| Tech Companies | 16 Mar 2021 | $115M | not disclosed | Insight Partners |
| Tech Companies | 10 Mar 2021 | $107M | not disclosed | Bessemer Venture Partners and Insight Partners |
| Tech Companies | 30 Mar 2021 | $101M | not disclosed | General Catalyst |
Sources
Where this comes from
Reported by 3 sources.
Questions
Frequently asked
How much did RingCentral raise in its Series C round?
RingCentral raised $400M in its Series C round, announced in Mar 2021.
Who led RingCentral's Series C round?
Andreessen Horowitz and General Catalyst led it, with Institutional Venture Partners, Salesforce Ventures, Tiger Global, Northzone and Coatue and 1 more.
What was RingCentral's valuation at the Series C round?
$5.65B post-money ($5.25B pre-money).
How does it compare with other Series C rounds in Tech Companies?
467 Series C rounds in Tech Companies within a year either side disclosed an amount; the median was $60M, and this round was 6.7 times the median.
Did RingCentral raise again after this round?
Yes: a Series D round in Aug 2021 of $450M at $7.75B post-money.