We recently announced an investment led by H.I.G. Growth Partners and a few other strategic investors. There’s no better time to expand our reach and deepen our capabilities, given the nascent maturity of FinOps as a discipline, not to mention the recession in tech.
Most companies are leaving money on the table
The FinOps Foundation’s 2023 State of FinOps report lays out the thesis for ProsperOps in 2023 and beyond. For the third year in a row, “empowering engineers to take action” is the #1 FinOps pain point.
Why is this pain persisting and how is ProsperOps part of the solution?
We don’t necessarily see the issue as one of empowerment, as much as one of bandwidth, division of labor and pragmatic trade-offs. The amount of FinOps work to properly optimize a dynamic computing environment will almost always outstrip the capacity of engineering teams. And that’s why the need for automated platforms like ProsperOps could not be greater.
Unfortunately, both FinOps automation and — specific to our business, commitment-based discount management — are both squarely framed in the “crawl” maturity stage, being two of the bottom four least mature capabilities. Our data is consistent with the 2023 State of FinOps report, and it shows a low maturity level where many companies are leaving material money on the table. Our goal is to resolve this problem.
How ProsperOps is poised to help you prosper in the cloud
Our new investment allows us to expand the work we perform for customers, including bringing automated commitment-based discount management, or “savings as a service,” to additional clouds. It includes the depth and sophistication of financial reporting and economic analysis available to teams, so DevOps and FinOps can better understand and manage cloud costs. It also includes using different types of automation and algorithmic management to address FinOps activities beyond commitment-based discount management. This is our focus over the next few years.
“Wix is a sophisticated FinOps organization with dynamic AWS compute consumption. ProsperOps allows Wix to maximize their compute savings while retaining the ability to change their engineering footprint at a day’s notice.”Dvir Mizrahi, Head of Financial Engineering at Wix
Our Growth Path and Support Network
Prior to this investment, we only took a seed round at incorporation and have organically grown the company each year over the past four years at a consistent triple-digit growth rate, and with profitability.
Note: Active Capital was in our seed, and they are the most founder-centric VC we could have ever hoped to work with. For any early stage company that reads this…call Pat Matthews at Active Capital.
That said, we never felt the long-term VC model was right for us. We wanted to build ProsperOps our way, but at the same time we knew taking investment was necessary to scale the company given the market opportunity. Enter H.I.G. Growth Partners.
In late 2022, we were introduced to H.I.G. Growth Partners through two of our advisors, Matt Bradley (a seed investor, a customer and long-time collaborator) and Sara Baack (a tenured ex-CMO at a Fortune 500 in our space). Ross Hiatt and Albert Koh, from H.I.G., were not only excited about the opportunity in automated cloud cost optimization; they also shared our beliefs on aggressive but responsible growth.
H.I.G. specializes in scaling high growth B2B SaaS companies, and that experience is exactly the support we need to get to the next level. It’s a scary decision for a founder to open up their company to others, but it makes a lot of business sense and we believe we’ve found the right partners to help ProsperOps realize its full potential. We are excited to have Ross, Albert, Sara and Matt join the ProsperOps Board, along with the founding team.
Entering 2023, ProsperOps manages discount instruments on more than three quarters of a billion dollars in AWS compute usage for some of the world’s most sophisticated FinOps teams. We are happy to report that 67% of our customers have doubled (or more) their savings as a result of using our service.
That’s great, but we are just getting started! If you’d like to learn more, connect with us on LinkedIn, or drop us an email at hello[at]prosperops.com.
– Chris, Erik, and Chris