Sauce Labs secures £37.8m in growth funding from Riverwood Capital

Sauce Labs, the San-Francisco-based cloud testing vendor, has secured $50m (£37.8m) in growth funding from Riverwood capital, according to a press release published on Tuesday (March.26th).

Sauce Labs plans to use the investment to accelerate its core business growth and its investment in research and development, as they pursue strategic growth opportunities.

In conjunction with the funding, Jeff Parks from Riverwood Capital will join the Sauce Labs board of directors.

Business growth

“As leading digital brands increasingly emphasise rapid delivery of flawless web and mobile applications, the global continuous testing market continues to grow and evolve,” said Charles Ramsey, CEO, Sauce Labs.

“With this new round of funding from Riverwood, Sauce Labs is well positioned to continue its rapid growth. We look forward to expanding our solution set, delivering innovations that define the future of continuous testing, and accelerating our customers’ digital journeys.”

The move comes at a time when digital transformation is driving a massive shift to DevOps-oriented, agile development processes. According to an IDC study, the worldwide DevOps software market forecast is to reach $8bn (£6m) by 2022, with a CAGR of 15.7%.

As more organisations undergo this major change to the way they develop and deliver applications, continuous testing has emerged as a lynchpin of the modern software delivery lifecycle process.

According to research from Forrester, 68% of agile teams now include testers, and quality has become an important metric that dev teams use to measure the quality of their service or product.

Riverwood Capital

“From day one, we were impressed by Sauce Labs’ history of market leadership, its commitment to engineering excellence, the passion of its employees and the loyalty of its customers,” said Jeff Parks, Co-Founder and Managing Partner, Riverwood Capital.

“We envision a day in the not-too-distant future in which every company in the world invests heavily in continuous testing, and we’re thrilled to partner with Charles and his world-class management team to help take Sauce Labs and its customers to new heights.”