Total amount raised
$22.1 Millions
Latest funding date
03/01/2024
Location
Lago has successfully raised $22 million over three funding rounds, with the latest being a Series A round. The platform offers an open-source metering and usage-based billing solution designed to meet advanced billing needs.
Keep reading to explore the intricacies of Lago's fundraising journey and the investors backing this innovative platform.
What Is Lago?
Lago, founded in 2021, is an open-source billing API designed for product-led SaaS companies. The company operates actively with headquarters in New Castle County, Delaware, and an additional location in Clichy, France.
Co-founded by Anh-tho Chuong and Raffi Sarkissian, Lago specializes in metering and usage-based billing solutions. The company employs between 11 and 50 people, focusing on automating advanced billing processes to enhance revenue generation.
How Much Funding Has Lago Raised?
- Pre-Seed Round
- Amount Raised: $125,000
- Date: August 2021
- Lead Investors: Y Combinator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund initial product development and set up operational infrastructure.
- Seed Round
- Amount Raised: $7,000,000
- Date: January 2023
- Lead Investors: SignalFire
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage development, product refinement, and initial market entry.
- Seed Round
- Amount Raised: Not disclosed
- Date: March 2023
- Lead Investors: Firestreak Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue product development and expand market reach.
- Series A Round
- Amount Raised: $15,000,000
- Date: March 2024
- Lead Investors: FirstMark
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations, expand market reach, and further develop product offerings.
Total Amount Raised: $22,125,000. Current Valuation: Not publicly disclosed.
Key Investors
- FirstMark
- Details: FirstMark is a venture capital firm that led Lago's $15 million Series A round. Matt Turck, a General Partner at FirstMark, is joining Lago's board.
- Investment Focus Areas: Early-stage technology companies, software, internet, technology infrastructure.
- Notable Investments: Shopify, Pinterest, Riot Games.
- SignalFire
- Details: SignalFire is a data-driven venture capital firm that led Lago's $7 million seed round. They specialize in leveraging data and technology to support their portfolio companies.
- Investment Focus Areas: Technology startups, data-driven ventures, various stages.
- Notable Investments: Grammarly, Frame.io, Ro.
- Y Combinator
- Details: Y Combinator is a renowned startup accelerator that provided early backing to Lago. Lago was part of the Y Combinator Summer 2021 cohort.
- Investment Focus Areas: Early-stage startups, software, internet, technology.
- Notable Investments: Airbnb, Dropbox, Stripe.
- New Wave
- Details: New Wave is a venture capital firm that invests in early-stage technology companies. They participated in Lago's seed round.
- Investment Focus Areas: Early-stage technology companies, innovative solutions, high growth potential.
- Notable Investments: Not publicly disclosed.
- Script
- Details: Script is a venture capital firm focused on supporting innovative startups. They participated as an additional investor in Lago.
- Investment Focus Areas: Early-stage investments, technology sector, innovative products.
- Notable Investments: Not publicly disclosed.
What's Next for Lago?
Lago's future is brimming with opportunities, particularly in creating a flexible and composable billing engine driven by open-source technologies. The company aims to expand its team and scale its offerings beyond Europe, especially in the US, where it already has a significant presence. This expansion could open doors to capturing a larger share of the global billing software market.
Given the successful Series A and seed funding rounds, Lago is well-positioned for future fundraising opportunities. The involvement of high-profile investors suggests that additional funding rounds are likely as the company continues to grow and innovate. However, Lago will need to navigate challenges such as competition from established billing solution providers and the need to continuously innovate to meet evolving customer needs.
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