Boundary Seals $15M

San Francisco-based IT management startup Boundary has raised $15 million in fresh capital. Scale Venture Partners led the B round and existing investor, Lightspeed Venture Partners, also participated. Boundary’s technology is designed to help companies running cloud applications to deliver “continuous quality of service,” the startup said.



Boundary has raised $15

million to accelerate its pursuit of revolutionizing IT management.

Scale Venture Partners led the B round and existing investor,

Lightspeed Venture Partners, also participated. The funds will be used

to further scale the business to capitalize on a massive shift

underway in IT environments, which demand a new approach to monitoring

and management.  Three months after launching its application

monitoring service, Boundary is tracking 23 billion records per day,

and expects to hit half a trillion by 2013.


“The shift to a cloud-based architecture is unfolding across every

area of IT, and as expected, becoming a huge disruptor for systems

management software,” said Rory O’Driscoll, managing director with

ScaleVP. “Boundary has executed on this huge market opportunity with

precision, getting a superior product to market and establishing

traction with a growing list of tech-savvy customers, including some

of our portfolio companies.  I’m excited to be an investor and to work

with Gary, Cliff and the team as they scale up.”


Organizations running their businesses on open source, big data and

cloud environments must rethink IT monitoring to cope with constant

change that has become the norm. This reality has caused rapid growth

in the distributed application performance monitoring and network

management markets.  A recent Gartner report stated that more than $18

billion was spent on IT operations management software in 2011, a $1.5

billion increase over spending in 2010.  Boundary has distinguished

itself by making monitoring effective, affordable and compatible with

modern IT architectures.


“Consumers expect cloud apps to work well all the time.  In this

environment, traditional monitoring systems, with their

sample/test/alert approach, are not good enough,” said Gary Read, CEO

at Boundary.  “Boundary is the only vendor whose system was built for

the cloud, monitors performance every second, and delivers actionable

insights to users.”


Many different types and sizes of companies use Boundary, but they all

have one thing in common: they care about providing customers with an

“always-on” experience.  Unlike its competitors, Boundary has the

ability to spot the early warning signs of potential system problems,

and resolve them before they impact customers.


Scale Venture Partners has a successful track record of investment.

With  $900 million under management, the firm has backed successful

cloud and SaaS startups, including Box, DocuSign, ExactTarget,

FrontBridge Technologies, HubSpot, Omniture, RingCentral, Scale

Computing, uTest and Vitrue.  Managing director Rory O’Driscoll, who

has joined the Boundary board, was named to the Forbes Midas List in

2012 and was also named one of the “power players” of venture capital

by AlwaysOn in 2011 and 2012.


“Boundary is bringing the transformative power of Big Data technology

to the IT monitoring market,” said John Vrionis, Managing Director at

Lightspeed Venture Partners and Boundary board member.  “We’re proud

to be founding investors in Boundary, and look forward to continuing

to support the company’s world class team in building the leading

next-generation solution.”


“We are excited that Lightspeed has increased its holding in Boundary

and that Rory has joined our board,” said Read.  “With support from

great partners like Scale VP and Lightspeed, who understand this huge

opportunity, we will build a company that sets the new standard for

how all organizations measure and monitor IT.”


About Scale Venture Partners

Scale Venture Partners (ScaleVP) invests in high-growth technology

companies with a focus on SaaS, Cloud, Mobile and Internet sectors.

With a proven track record and market-specific expertise, ScaleVP is a

strategic partner in helping entrepreneurs and management teams scale

their business and grow into long-term companies that matter. Founded

in 2000, the firm has $900 million under management and is currently

investing Scale Venture Partners III.  Representative investments

include: Box, BrightRoll, DocuSign, Everyday Health, ExactTarget (ET),

HubSpot, NComputing, Omniture, RingCentral and Vitrue.


ScaleVP is located in Foster City, California.  For more information,

visit or find us on Facebook at


About Lightspeed Venture Partners

Lightspeed Venture Partners is a leading global venture capital firm

with over $2 billion of committed capital under management.

Lightspeed’s investment professionals and advisors are located in

Silicon Valley, India, Israel and China with Lightspeed China

Partners.  Over the past two decades, the Lightspeed team has backed

more than 200 companies, many of which have become leaders in their

respective markets, including Blue Nile, Brocade, Calista, Ciena,

DoubleClick, eHealth, Fusion-io, Growth Networks, Informatica, Kiva

Software, Kosmix, Link-A-Media, LivingSocial, Lucky Pai, Maker

Communications, Playdom, Pliant, Provigent, Riverbed Technology,

Solazyme, TutorVista, Virsa Systems, Waveset, and XtremIO. For more

information, visit the Lightspeed website:


About Boundary

Boundary enables organizations running cloud applications to deliver

continuous quality of service and enhance their operational agility.

Unlike traditional monitoring solutions, Boundary believes in

collecting all the data by the second, providing critical, real-time

application insights for dynamic infrastructures.  Boundary is a

privately-held company based in San Francisco, California with venture

funding from Lightspeed Venture Partners and Scale Venture Partners.




Blog post, Rory O’Driscoll, ScaleVP


Today, we are pleased to announce our Series B investment in Boundary.

Boundary is the application performance monitoring solution designed

for distributed application environments.  The team is led by Gary

Read as CEO, and technical founder Cliff Moon.


In every investment we make at ScaleVP, we look for two things, broad

market trends and great  execution. Boundary has both.


The Big Trend: Cloud Computing makes existing systems management obsolete


Sometimes we take the whole startup game for granted and we forget how

audacious and crazy it all is. These companies come along, and in a

world that is growing overall at 1.2% this year (go US economy!), they

project five or ten years, of 100% and 200% year-on-year grow rates.

What is more amazing is that some of them pull it off. How do they do



The do it by having a product and a vision that is linked to the wider

trends that are driving change in the overall technology industry.

Companies do not grow from $1 MM to $100 MM on internal effort alone,

no matter how hard the team tries. They grow in part by being

connected to durable long-term trends in the market that provide the

lift that makes all the internal effort worthwhile. For Boundary, it’s

the inexorable shift to cloud computing architecture.


Boundary helps the IT operations managers of these new, cloud based,

distributed networks monitor what is going on in their network. It’s

part of the systems management market – technologies that help IT guys

know if their stuff is working – and it’s been around forever. When IT

was running mainframes, companies like IBM and BMC sold software to

help IT know if the Big Iron was running right. When the architecture

shifted from mainframes to client server, with lots of PC’s and a

smaller number of servers, IBM and BMC were slow to change, and left

the opportunity open for new vendors like Tivoli. Every shift in

computing architecture since, has disrupted the related systems

management market, and created a space for new companies like

Bladelogic, SolarWinds, New Relic and Splunk, four of the most

impressive systems management companies of the past ten years.


The shift to a cloud based architecture is a big trend for IT and a

huge disruptor for systems management software. When your computing is

being done on thousands of virtual machines somewhere in the cloud on

Amazon or Rackspace, then IT operations cannot use any of the existing

technology to monitor what is going on in the network. All the

existing solutions assume hardware level access to the physical

network to enable monitoring and that just isn’t possible in the

cloud. IT doesn’t own the hardware, cannot physically touch it, and

most likely does not even know where it is.


Boundary solves that problem elegantly, by adding a meter/agent to

every server or virtual server that transmits network level

information back to the Boundary website. Customers can go to that

website and see in real time the traffic flows for their system,

regardless of where the servers reside. One of the fun parts of the

due diligence for Boundary has been going on customer visits and

watching the “aha” moment when IT sees, often for the first time,

where their application is running in the network, and where every

packet is coming from and going to. We believe that every IT

professional who is responsible for the performance and security of a

distributed application is going to have to have access to this type

of information over the next five years. That is a lot of IT

professionals.  Amazon Web Services is already running 500 million

virtual servers and this number is only going to go up.  That is the

long term trend that drives Boundary.


Great Execution: The Boundary Team

A great opportunity is a good start, but it takes great execution to

deliver on it. The Boundary team has done a really nice job of getting

the product to market, and signing early, tech savvy customers like

GitHub.  The early customer traction is strong and many of our

portfolio companies have adopted it or are considering it right now.


The team is led by CEO Gary Read who has had prior success in the same

market at Nimsoft and technical founder Cliff Moon who designed and

built the product. What we like most about the team is that they

absolutely understand the mission and what it takes to take it to the

next level.  Listening to customers and prospects on what higher level

analysis is needed around a specific application or security threat.

Boundary is turning that feedback into new application packages that

run on top of the core platform and that can be tweaked by IT to

answer whatever is the most pertinent question for IT right now.  Stay

tuned for more!


We are delighted to have made this investment and look forward to

working with the Boundary team and Lightspeed Ventures. We think

Boundary is more than ready for Scale.