Metronome, a startup specializing in helping software companies implement usage-based billing, has secured $43 million in a Series B funding round led by NEA. Existing investors Andreessen Horowitz and General Catalyst also participated in the financing, bringing the total amount raised by the company to over $78 million since its inception in 2019.
Founded by former Dropbox employees Kevin Liu and Scott Woody, Metronome is based in San Francisco. The company reported a six-fold increase in Annual Recurring Revenue (ARR) last year, attributed to the growing trend of companies transitioning from subscription-based models to usage-based or hybrid models. Among its clientele are startups like OpenAI and Anthropic, as well as enterprise giants such as Databricks and Nvidia. While initially focused on startups, Metronome expanded its services to cater to enterprise clients last year.
Kevin Liu, co-founder of Metronome, expressed gratitude for the company's growth amidst a challenging year for Software as a Service (SaaS) businesses. He highlighted Metronome's role as a revenue driver for its customers, especially in the context of the rising adoption of usage-based models in AI companies.
Metronome operates on a usage-based pricing model itself but declined to disclose its valuation, mentioning only that it exceeded its Series A valuation by a significant margin. Scott Woody, the other co-founder, mentioned that the company was heavily oversubscribed and retained most of its Series A funding.
The startup aims to simplify billing integration and maintenance for companies, particularly in the AI sector, where usage-based pricing is prevalent across the entire technology stack. Metronome's platform offers out-of-the-box integrations, reducing the need for extensive engineering efforts by companies.
To accommodate increasing demand, Metronome has doubled its workforce to 66 full-time employees over the past year, with plans for further expansion, particularly in its Research and Development (R&D) and customer-facing teams. The company intends to utilize the new funding to advance its product roadmap and ensure long-term sustainability.
As part of the funding round, NEA partner Hilarie Koplow-McAdams has joined Metronome's board of directors. She emphasized the importance of efficient billing systems in driving revenue for businesses and commended Metronome for streamlining billing processes for its customers.
