Salto Seasons Growth With $42M Series B, Seven Months After Series A 

Tel Aviv-based Salto closed a $42 million Series B led by Accel and Salesforce Ventures1, just seven months after raising a $27 million Series A.

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The new round — which brings the company’s total funding to $69 million — also included participation from Bessemer Venture Partners and Lightspeed Venture Partners.

Salto solves a problem some people may not know exists; but every company does. Its platform helps companies manage their SaaS business applications, in essence a foundation layer so companies can easily make changes to large applications such as NetSuite and Salesforce and have those changes be made across other business applications, said co-founder and CEO Rami Tamir.

This eliminates the need for siloed teams to manually make each change for every application — slowing down the business.

“This changes the way people are working with applications and makes them more productive,” said Philippe Botteri, partner at Accel.

Timing is right

Despite having most of the Series A still in the bank, Tamir said the company chose to add the Series B after being contacted by venture capitalists almost daily looking to invest, as well as demand by customers to add more business applications to the platform. The platform currently works with a handful such as NetSuite and Salesforce, and should have about 15 on it by the end of the year.

“We felt like we were at the right point in time for acceleration,” Tamir said.

This is not Tamir’s first time raising money and building a company. He and his fellow co-founders — Benny Schnaider and Gil Hoffer — have started up companies in the past with successful exits. Most recently was cloud service provider Ravello Systems, which was acquired by Oracle for a reported $500 million in 2016.

Salto began selling just at the end of last year and has “tens” of paying customers, Tamir said. While the company does not sell to specific verticals, Tamir said larger companies — 300 employees or more — usually are the type looking for a platform like Salto’s.

While some business applications like NetSuite have their own solutions to help customers manage them, Tamir said he sees no competitor on the market that works with multiple business applications. Cloud providers such as AWS or Google also have no such offerings that help companies with their SaaS applications, he added.

Salto’s opportunity is massive, said Botteri.

“The size and magnitude of the market is enormous,” he said. “Any company of any size uses multiple SaaS applications and they need to be able to communicate.”

Illustration: Li-Anne Dias