G2 Crowd, a platform that lets businesses search for, compare reviews and pricing for, and then buy software and other IT services — it likes to refer to itself as the “Amazon of business software” — has raised $55 million in growth funding to continue expanding its business. This round was led by IVP, with participation from enterprise VC Emergence Capital and Accel (which led its previous round, which also included LinkedIn as an investor), and brings the company “close to half a billion dollar valuation,” according to a source close to the company.
This is a big leap: in May 2017, when it last raised money, G2 Crowd was valued at $130 million post-money, according to PitchBook.
The rise of that valuation underscores just how fragmented and competitive the market is for business software today, and how a company that provides a useful way to navigate through that has a very good shot at building a lucrative business. More generally, a vertical search engine filling a gap in the market and that actually works remains a killer app, despite the dominance of Google in so many areas of search, and of Amazon in so many areas of online commerce.
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