Monday, June 24, 2024

Faddom raises $12M to help companies map IT infrastructure wherever it lives | TechCrunch

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When IT was responsible for servers onsite, understanding what you owned and where it lived was not a big problem. For most, it was physical machines in a closet or server room, but as infrastructure became virtualized and moved to the cloud, figuring out the lay of your infrastructure land became more difficult.

Faddom, an early-stage Israeli startup, helps companies map their infrastructure wherever it lives, and helps them visualize the connections and dependencies, taking aim at medium-sized enterprises. Today the company announced a $12 million Series A.

“Faddom is all about creating a simple and easy to use unified map of all your dependencies and your environment,” Lanir Shacham, Faddom co-founder and CEO told TechCrunch. “By dependencies, I mean every single IP [address] that moves in your network, and every single socket that opens up in your network and the direction of the connectivity, which is the most key thing,” he said.

The end result is a bi-directional graph of the environment, including physical servers, virtualized servers and cloud infrastructure, which can be grouped together, typically by business application to let IT know exactly what they have in terms of infrastructure and how it works together. Once the map is in place, companies can use the information for a variety of tasks such as infrastructure change management and migrations, cybersecurity and compliance.

It defines its target market as companies with between a few hundred and a few thousand employees managing perhaps 100 servers or more with between $100 million to a few billion dollars in revenue. “Usually their IT won’t be that big. Usually their budgets will be very low, and usually there’s no innovation tailored for that type of segment,” he said.

What’s more, they claim to be keeping the price down to around $15,000-$20,000 per year on average, a price point the startup believes gives target companies of this size access to sophisticated technology typically out of their reach. But it’s important to note that the pricing is based on the size of the map, so the more complex the environment, the more customers are likely to pay.

Shacham admits that getting investors to bite for a product targeted at this market was challenging, but so far their growth suggests they are beginning to gain traction. After launching in 2021, Faddom has 100 customers so far, 300% annual revenue growth and reports $1 million in annual recurring revenue (ARR) to this point.

The company closed the $12 million A round in September and has already grown from 23 to 30 employees with seven new recent hires. The tentative plan is to get to 50 this year, but Shacham says it will depend on how quickly the business continues to grow.

The funding came from Viola Ventures, NFX and a group of unnamed industry angels.

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