LeanIX raises $7.5 million for US expansion
DTCP invests in pioneering enterprise architecture software
Bonn/Boston, 18 July – The start-up LeanIX and its software-as-a-service (SaaS) application for enterprise architecture (EA) is helping companies modernize their IT architectures. From Adidas, DHL and Merck, to Vodafone and Zalando, over 80 big-name customers worldwide use LeanIX’s technology. Now the Germany-based company with a branch in Boston has raised USD 7.5 million for ongoing expansion into the US market and further product development. The series B financing round is being led by DTCP (Deutsche Telekom Capital Partners). Existing investors Capnamic Ventures and Iris Capital are also participating. LeanIX is targeting a growing market with a global size of more than USD 2 billion.
LeanIX’ software enhances companies’ competitiveness and innovative capabilities. It is the driving force in the transition to modern IT systems. Many organizations face the challenge of ever more complex IT landscapes that are subject to constant change. In order to introduce products more quickly or react more flexibly to user feedback, monolithic software structures must be broken down and replaced by intelligent services – cloud-based services, for example.
“More than ever, companies are setting themselves apart through a flexible IT architecture. Over 70% of the leading European and American companies plan to introduce state-of-the-art microservices architectures in the next 12 months (LeanIX Study),” says Co-CEO André Christ, who founded LeanIX with Jörg Beyer in 2012. “With our technology, we are setting new standards in the EA market. Now our goal is to become the world’s leading software for the modernization of IT architecture. We are delighted to have gained a strong partner in DTCP as we continue to move forward with our expansion in the US.”
The new capital will be used to further strengthen the team in the US as well as at headquarters in Bonn. Some 40% of sales are already generated outside of Germany. In the US market, LeanIX already has attracted big-name companies from the fields of manufacturing, banking and services, such as Haworth, Flagstar Bank and Plum Healthcare. In response to growing demand, the company opened an office in Boston, Massachusetts, in March 2017 and hired sales experts for the US market.
“The decisive factor for our investment was LeanIX’ next-generation enterprise architecture management software, which is positioned in the market as a central component of the digital transformation. So LeanIX is taking on a pioneering role, particularly with regard to latest IT technologies and modern frameworks and architectures, such as microservices. We are excited to support the company’s global expansion, especially in the US, through our local team and network,” says Thomas Preuss, Partner at DTCP.
Jörg Binnenbrücker, Managing Partner at Capnamic Ventures adds: “Since our first investment two-and-a-half years ago, LeanIX has shown outstanding development. The start-up is setting new standards with its product and the market development shows great potential in the EA area. With this additional investment, we want to continue actively supporting LeanIX in its growth and further strengthen our partnership.”
LeanIX offers a Software-as-a-Service (SaaS) for Enterprise Architecture (EA), which enables organizations to take faster, data-driven decisions in their IT. More than 80 leading brands such as Adidas, DHL, Merck, Vodafone or Zalando use the innovative solution worldwide. Users of LeanIX gain insight how well the used technology supports the business to increase competitiveness and to strengthen innovation. LeanIX addresses the frequent problem, that the required information about the IT landscape is missing, outdated or difficult to analyze. Use cases include application rationalization, technology risk management and the shift from monolithic architectures to microservices. LeanIX was founded in 2012 by Jörg Beyer and André Christ. The company's headquarter is in Bonn, with offices in Boston, Massachusetts and Houston, Texas. A wide network of partners provides support in America, Europe and Australia.
About DTCP (Deutsche Telekom Capital Partners)
DTCP is Deutsche Telekom’s investment management group with over $1 billion assets under management and advisory, and a portfolio of over 70 companies. The group is dedicated to providing venture capital, special situations investments, and advisory services to the technology, media and telecommunication sectors. It operates and invests in the US, Israel and Europe.
About Capnamic Ventures
Capnamic Ventures is one of Europe’s leading early-stage Venture Capital firms, with offices in Berlin and Cologne. The VC invests most of its funds in tech startups in the German-speaking region. Capnamic also joins forces with international co-investors. All portfolio companies are supported through Capnamic’s global network of investors and industry partners. The vast expertise of the Capnamic team includes more than 70 investments, a high turnover of successful trade sales and IPOs, as well as a strong entrepreneurial track record within the investment team. The general partners are Jörg Binnenbrücker (@bibrue), Olaf Jacobi (@olafjacobi) and Christian Siegele.
About Iris Capital
Iris Capital is a European venture capital funds’ manager specialized in the digital economy. It fuels entrepreneurs at various stages of maturity, from early-stage to growth equity. With its deep sector specialization and extensive experience acquired over 30+ years, as well as the backing of its corporate sponsors, Iris Capital provides active support to its portfolio companies, through its presence in Paris, Berlin, San Francisco, Tel Aviv, Dubai and Tokyo.