- RevenueCat, a Y-Combinator startup that helps app developers manage in-app purchases and subscriptions, raised a $15 million Series A in August.
- The round was led by Index Ventures, while firms like Oakhouse Partners and angel investors Nicolas Dessaigne, Josh Buckley, and Harry Stebbings contributed.
- The company has raised a total of $16.65 million, according to Pitchbook, and the company said in August it's valued at $60 million.
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RevenueCat founders Jacob Eiting and Miguel Carranza came up with the idea for an app subscription manager when they were working at brain training app Elevate. As Elevate began to grow, it became harder and harder to share revenue and data with company shareholders — or even internally — because Apple's App Store and Google Play required the company to use complicated APIs to process subscriptions.
"There's this huge gap in what developers practically need to run a business on these tools and what Apple actually delivers — and they're not exactly good at listening or taking feedback," Eiting previously told Business Insider. "They care much more about the end user experience than the developer experience."
Eiting and Carranza quickly learned from friends at other app companies this was a widespread problem. Developers had to manually process subscriptions and create complicated webs of code to automate the process. And there were still big gaps in the data.
So, in 2016, the pair left their jobs at Elevate to work on a new company, which they deemed RevenueCat, which aimed to help app developers make more money. As of August 2020, the company amassed over 3,000 app companies using its product.
The company has raised over $16 million in funding, including a $15 million Series A in August from Index Ventures, Oakhouse Partners, and a handful of angel investors. It's now valued at $60 million. It offers a robust app manager and data collector that allows companies to experiment with different price points and different kinds of subscriptions. Previously, app developers would build their own tools.
"There's all these things that developers buy and build." Eiting said in August. "We were kind of the first in this category to be like, 'Also you should buy tools for this.'"
Here's RevenueCat's pitch deck, which netted a $15 million in Series A:
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