Siena Secondary Fund acquired a stake in Testlio

26 October 2021

Testlio, the originator of networked testing, today announced that it has closed $12 million in Series B financing. The round was led by Spring Lake Equity Partners and was oversubscribed. It included participation from Series A co-leads Altos Ventures and Vertex Ventures US. With the round, Jeff Williams, Partner at Spring Lake Equity Partners, joins the Testlio Board of Directors. EstVCA member Siena Secondary Fund acquired its stake in the firm from a previous employee right after the B Round investment.

Siena Secondary Fund (SSF) was established at the beginning of 2021 and provides liquidity for early investors, founders and employees of high-growth startups from the "New Nordics" (Baltic & Nordic) region. They target companies that are usually post series A, have a solid business model, and are still in a high growth phase.

Rando Rannus, the General Partner of Siena Secondary Fund commented that Testlio is a perfect match for Siena’s strategy. „The company has shown a stable and gradual growth but has been somewhat observed from distance by Estonian investors. With the new investment round, the firm is again entering the fast growth phase and we are excited to be included in the journey,“ Rannus said.

Photo: Siena Secondary Fund partners Rando Rannus and Rain Tamm

Testlio founder Marko Kruustük added that in the last funding round, the company offered its employees the possibility to exercise company options. „It was great to see Siena Secondary Fund also joining in to offer possibilities for previous employees to exercise their options“.

The series B funding round of Testlio
Demand for a more impactful approach to software testing has skyrocketed with the unprecedented proliferation of digital technologies. Product and engineering teams are under pressure to increase development velocity and deliver exceptionally high-quality user experiences. Testlio helps clients such as Fox, Microsoft, the NBA, Netflix, and SAP release better products faster via burstable, on-demand testing on any device, in any location, and in any language.

Testlio has exceeded a $20 million annualized revenue run rate this year after previously raising only $7.5 million in Seed and Series A capital. The company has increased revenue by 50 percent and employees by nearly 100 percent year-over-year. Testlio also delivered net income profitability for 10 straight quarters. With an emphasis on purpose, values, culture, and impact, Testlio has earned strong employee and customer reviews resulting in a 4.9 rating on Glassdoor, 4.7 on G2 and a 75 NPS from its customers.

Without a need for extensive new funding, the Series B round was driven by a balanced stakeholder approach, profound personal connections, and a shared viewpoint on healthy capitalization. The new capital will be used to expand client services, deepen platform capabilities, fuel brand awareness, and drive geographic sales expansion. Additionally, the round included secondary proceeds for veteran Testlio employees at all levels.

“Our clients deliver better digital experiences thanks to the networked testing model. Further, it is clear to me that the demand for more impactful software testing is hitting an inflection point,” said Steve Semelsberger, CEO of Testlio. “We are excited that Jeff Williams from Spring Lake Equity Partners has joined the Testlio board of directors. We considered multiple investors and wholeheartedly selected Jeff.”

“Testlio is exactly the kind of company that Spring Lake Equity Partners loves to work with: growing, capital-efficient, innovating effectively, and in the middle of a massive market,” stated Williams. “We’ve been impressed by the Testlio team over the last two years that we’ve gotten to know them and we’re bullish for what’s ahead.”

  • Read more about Testlio and the recent funding round HERE 
  • Read more about Siena Secondary Fund HERE

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Photos: Testlio; foundme.io; https://unsplash.com/@davealmine

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