Funding round
RingCentral Series D
RingCentral, which works in cloud communication solutions development in Belmont, raised $450M in a Series D round announced on 1 Aug 2021, led by Arena Holdings and Altimeter, at a $7.75B post-money valuation. 15 firms took part, 10 of them already investors. It is RingCentral's fourth venture round on record; the one before was a Series C in Mar 2021.
$450M
Amount raised
$7.75B
Post-money valuation
15
Investors
2 leads
1.4x
Step-up from the Series C
$5.65B in Mar 2021
5.8%
Stake sold
new money over the post-money
Valuation
What this round says about the price
This round priced RingCentral at $7.75B after the new money, 1.4 times the $5.65B of its Series C (Mar 2021). The $450M bought investors about 5.8% of the company. It came 5 months after RingCentral's Series C. It is 44% of the $1.01B RingCentral has raised in the venture rounds on record. No later venture round is on record for RingCentral.
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 4 Mar 2021, led by Andreessen Horowitz and General Catalyst $400M$5.65B post-money
- Series D this round 1 Aug 2021, led by Arena Holdings and Altimeter $450M$7.75B post-money
Investors
Who put money in
Arena Holdings and Altimeter led the round with 13 other firms. Andreessen Horowitz, DFJ Growth, General Catalyst and GIC and 6 more had backed RingCentral before.
Lead investors
- backs 11 venture-backed companies new investor
- Altimeter backs 67 venture-backed companies new investor
Also in the round
- Adams Street Partners backs 61 venture-backed companies new investor
- Untitled Investments new investor
- XN new investor
- Andreessen Horowitz backs 722 venture-backed companies existing investor
- DFJ Growth backs 51 venture-backed companies existing investor
- General Catalyst backs 574 venture-backed companies existing investor
- GIC backs 98 venture-backed companies existing investor
- Institutional Venture Partners backs 109 venture-backed companies existing investor
- backs 104 venture-backed companies existing investor
- Salesforce Ventures backs 314 venture-backed companies existing investor
- Slack Fund existing investor
- Temasek backs 195 venture-backed companies existing investor
- Tiger Global existing investor
Use of proceeds
What the money is for
According to the announcement, the money goes to product development, scaling operations, hiring, geographic expansion, sales and marketing, acquisitions and working capital.
- Product development
- Scaling operations
- Hiring
- Geographic expansion
- Sales and marketing
- Acquisitions
- Working capital
Comparable rounds
How it compares
242 Series D rounds in Tech Companies within a year either side disclosed an amount; the median was $100M, and this round was 4.5 times the median. The closest in time, other companies' Series D rounds in Tech Companies:
| Company | Announced | Amount | Post-money | Led by |
|---|---|---|---|---|
| Talkdesk Tech Companies | 12 Aug 2021 | $230M | $10.00B | Whale Rock Capital Management and Transpose Platform |
| Postman Tech Companies | 18 Aug 2021 | $225M | $5.60B | Insight Partners |
| Tech Companies | 17 Aug 2021 | $162M | $2.70B | DST Global |
| Tech Companies | 17 Aug 2021 | $130M | $1.50B | Insight Partners |
| Tech Companies | 16 Aug 2021 | $120M | not disclosed | SoftBank Vision Fund |
| Tech Companies | 4 Aug 2021 | $100M | $1.80B | Permira |
| Tech Companies | 11 Aug 2021 | $100M | $1.10B | Akkadian Venture Capital and Mubadala Capital |
| Tech Companies | 25 Aug 2021 | $78M | not disclosed | G2 Venture Partners |
Sources
Where this comes from
Reported by 4 sources.
Questions
Frequently asked
How much did RingCentral raise in its Series D round?
RingCentral raised $450M in its Series D round, announced in Aug 2021.
Who led RingCentral's Series D round?
Arena Holdings and Altimeter led it, with Adams Street Partners, Untitled Investments, XN, Andreessen Horowitz and DFJ Growth and 8 more.
What was RingCentral's valuation at the Series D round?
$7.75B post-money.
How does it compare with other Series D rounds in Tech Companies?
242 Series D rounds in Tech Companies within a year either side disclosed an amount; the median was $100M, and this round was 4.5 times the median.