Vaadin raises $6M in Funding lead by eEquity
Private equity company eEquity and Finnish Industry Investment invest $6M in Vaadin Ltd, the open source company whose userinterface tools are used in 40 % of Fortune100 companies and by over 150 000 developers worldwide. Vaadin’s headquarters is located in Turku.
Vaadin's business is building components and tools for web application developers. Its products enable businesses to replace most of their desktop applications with standard based web applications that run on all major mobile and desktop browsers. By hiding the underlying complexity of the web standards, Vaadin's technology speeds up the development process, increases security and allows developers to focus on building business value.
Rapid changes in web development ecosystem
With the new investment, the company intends to boost its R&D and ecosystem development to expand its unique set of developer tools.
"With the current product portfolio, Vaadin has a unique opportunity to develop its tooling into the direction future web apps need. With 100+ employees, a solid customer base and being profitable with a turnover of $10M, the company is well set to change the developer experience in the coming years," Joonas says.
"We've been following growing Nordic success stories and got Vaadin on our radar early on after our portfolio companies had been using Vaadin to increase productivity among their developers," says Patrik Hedelin, partner at eEquity and previous co-founder of boo.com.
Growth 30 % per annum
"Vaadin is a market leading server side Java framework with a very strong technology offering which is now ready to be offered on a larger scale. The company has been growing 30 % per annum historically under profitability. Vaadin has recently launched the sale of premium tools that has been really well received in the market where we expect the recurring revenues to grow quickly," he summarizes.
Earlier investors in Vaadin include Aboa Venture Management and Finnish Industry Investment. During this round Finnish Industry Investment increases its stake in Vaadin by joining eEquity as investors. The company intends to keep on rapidly hiring more people into its Turku, Helsinki, Berlin and San Jose offices during 2016.