Metronome, a San Francisco-based startup facilitating usage-based billing for software companies, has secured $43 million in a Series B funding round led by NEA. With participation from existing investors Andreessen Horowitz and General Catalyst, this funding round brings Metronome’s total raised capital to over $78 million since its inception in 2019.
Founding Visionaries
Founded by former Dropbox employees Kevin Liu and Scott Woody, Metronome saw significant growth in 2023, with a six-fold increase in ARR. Initially catering to startups, Metronome expanded its services to enterprise clients last year, witnessing a surge in demand amid the industry-wide shift towards usage-based billing models.
Adoption in the AI Space
Metronome’s success is partially attributed to the rising adoption of AI technologies, driving companies to adopt usage-based pricing models. The startup’s offering streamlines billing integration and maintenance processes, minimizing engineering efforts for its customers. This approach has particularly resonated with AI companies, given the inherent usage-based cost structures within the AI stack.
Streamlined Operations and Expansion Plans
With a focus on enhancing product capabilities, Metronome intends to utilize the fresh capital to advance its product roadmap. The startup emphasizes facilitating seamless transitions to cloud and usage-based revenue models for enterprise clients, aiming to minimize disruptions while accelerating the adoption process. To support its growing clientele, Metronome has significantly expanded its workforce, doubling its headcount to 66 full-time employees over the past year.
Strategic Partnership and Future Outlook
NEA partner Hilarie Koplow-McAdams has joined Metronome’s board of directors as part of the funding round. She highlights the critical role of billing infrastructure in driving business revenue and praises Metronome’s ability to streamline billing processes, enabling swift operationalization of new business models. Looking ahead, Metronome aims to consolidate its position as a key player in the software billing space, leveraging its substantial funding to fuel further growth and innovation.
