PENPO-MENTUM.

• Author: Macmillan, Michael

MORE MONEY IS FLOWING INTO A THRIVING RALEIGH SOFTWARE APPLICATIONS CONCERN. RAISING EXPECTATIONS FOR BREAKOUT SUCCESS.

A random lunch table at this year's "Pendomonium" event in Raleigh was populated by venture capitalists from the West Coast and users from across the country, a reflection of software company Pendo's growing momentum. Nearly 1,100 attended the September gathering, up from 430 last year.

Investors are taking notice. Pendo announced on Oct. 17 that it had raised $100 million, bringing total capital invested to $206 million. The latest funding appraises Pendo at more than $1 billion, according to the company. Participants in the funding included longtime Pendo investor Sapphire Ventures LLC and new investors General Atlantic and Tiger Global Management, which is affiliated with famed hedge-fund investor and Salisbury native Julian Robertson.

Achieving unicorn status as a $1 billion startup puts Pendo in a league of 498 unicorns worldwide as of September 2019, valued at $1.8 trillion, according to Crunchbase Inc., which tracks startups. Privately held Pendo doesn't disclose revenues, but Inc. magazine estimated its sales at about $21 million for the fiscal year ending Jan. 31. Co-founder and CEO Todd Olson says, "Revenues have been growing more than 100% a year," while staff has also more than doubled to 370 as of October. Pendo has more than 1,200 customers who rely on its products to improve the performance of their software.

The company revealed several new products at its annual conference, including a new mobile offering and Data Explorer, which helps digital-design teams prioritize requests for new features. The new tool is a result of the May acquisition of London-based Receptive Software Ltd.

While Olson says no new deals are in the pipeline, more acquisitions are possible to improve Pendo's competitive position. "You have to innovate. You have to be aggressive."

Last December, Pendo said it would add 590 jobs in Raleigh over the next five years with an average salary of just under $87,000. In return for the $35 million investment, Pendo received pledges for $10.7 million in incentives from state and local governments. On Sept. 9, ground was broken on Pendo's new headquarters building in downtown Raleigh. Boston-based The Fallon Co. is developing the...