The Israeli startup company Frontegg, which develops a system that offers SaaS companies features that they can integrate into their products – in a SaaS format– announced today (Thursday) that they have completed a $40 million Series B funding round. The round was led by Stripes – which is a new investor in the company – and Insight Partners, who led their previous round last December. Global Founders Capital, Pitango First and i3 Equity also participated in the round.
Offering more than SaaS services to SaaS companies
Frontegg offers you a kind of ‘app store’ for app features. Frontegg's "shop" is available for both backend and frontend. Developing such capabilities in-house can take many months, while also being extremely time-consuming to keep up, be it for maintenance, adjustments, or improvements. So, their solution saves companies precious time while allowing them to still accelerate the arrival of products to the market, all the while leaving the company and the developers focused on the core capabilities of the product, and not everything around it.
In a conversation with Geektime, the company's CEO Sagi Rodin said that alongside the B2B SaaS companies they normally work with, in the last year, Frontegg also opened its system to users outside the B2B sector. "Users can register themselves and in minutes plan product experiences and integrate them into their products in a simple and fast way," Rodin said.
We have entered a market crisis yet are seeing that young companies are managing to recruit funds more easily than mature ones. Did you feel any difficulty in recruitment?
"The company's fundraising came quickly after our Series A round last December. We didn't seek out this round because we needed the money, but rather because we see a great opportunity in the market to grow faster, and give more value to our customers, especially now that we have Stripes joining forces with us.”'
Although Rodin does not specify how the company is preparing to deal with the effects of the economic crisis, he claims that Frontegg is expected to continue the momentum it is in: "Just like at the beginning of the COVID-19 era, we feel that, especially in times of uncertainty, technology companies go back to the basics and look for products that speed up their time to market, allow them to bring enormous value to customers and increase their profits. Frontegg is providing just that.”