New Relic Acquisition, Valuation, Funding & Investors

New Relic was acquired by Francisco Partners and TPG for $6.5B in July 2023, a 7.0x multiple on $926M of revenue.

New Relic acquisition price

$6.5B

Acquired by Francisco Partners, TPG · Jul 2023

New Relic revenue at acquisition

$926M

Last twelve months · Jul 2023

New Relic revenue multiple at acquisition

7.0x

EV/Revenue · Jul 2023

Cumulative funding New Relic raised

$180M

across 2 funding rounds

New Relic Overview

About New Relic

New Relic is a San Francisco-headquartered software observability platform offering full-stack monitoring for applications, infrastructure, browsers, and mobile. Its Telemetry Data Platform processes billions of data points per minute from cloud environments like AWS, Azure, and Google Cloud. The company supports over 14,000 paying customers including Adobe, ExxonMobil, and Pfizer. Founded in 2008, New Relic went public in 2014 on the NYSE under NEWR before being taken private in 2023 by Francisco Partners and TPG for $6.5 billion. It delivers AI-powered insights via New Relic AI and entity-centric analytics.


Founded

2008

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Subscription, Usage-based

Revenue

$63M (Apr 2014)

Valuation

$1B (Apr 2014)

New Relic Acquisition

New Relic was acquired by Francisco Partners and TPG for $6.5B on 31 July 2023.

The acquisition price implies a 7.0x revenue multiple on $926M of revenue.

Before the acquisition New Relic had raised $180M across 2 funding rounds.

New Relic acquisition details
AcquirerDateTypePriceEV/Revenue
  • Francisco Partners
  • TPG
31 Jul 2023PE buyout$6.5B7.0x

New Relic Valuation

New Relic is currently valued at $1B, based on its undisclosed-stage round in April 2014.

The $100M round was led by BlackRock, with participation from Wellington Management, Fidelity and T. Rowe Price.

New Relic's valuation has grown 1.3x from $750M at its undisclosed-stage round in February 2013 to $1B in April 2014, across 2 priced rounds.

New Relic valuation by funding round

Revenue multiple
New Relic valuation by funding round
DateStageValuationRevenue Multiple
Apr 2014Undisclosed stage$1B15.9x
Feb 2013Undisclosed stage$750M25.0x

New Relic Revenue

New Relic's latest recorded revenue is $63M, as of its undisclosed-stage round in April 2014. At a $1B valuation, that implies a 15.9x revenue multiple.

Revenue grew from $30M in February 2013 to $63M in April 2014, while the revenue multiple moved from 25.0x to 15.9x.

New Relic revenue by funding round

New Relic revenue and valuation multiple by funding round
DateRevenue *ValuationRevenue MultipleStage
Apr 2014$63M$1B15.9xUndisclosed stage
Feb 2013$30M$750M25.0xUndisclosed stage

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

New Relic Funding History

New Relic has raised a total of $180M across 2 funding rounds.

New Relic's first fundraising round was a $80M undisclosed-stage round in February 2013. The most recent completed round was a $100M undisclosed-stage round in April 2014.

New Relic funding rounds

New Relic funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Apr 2014Undisclosed stageBlackRock (lead); Wellington Management; Fidelity; T. Rowe Price$100M$1BNew Relic, founded in 2008 by Lew Cirne, provides software analytics including application performance management (APM), mobile, servers, and browser monitoring, analyzing over 200 billion data points daily across tens of thousands of customers and 3 million application instances as of April 2014. The company had grown to 70,000 active customer accounts, adding 500 large enterprise customers in the prior year, and was recognized as a Gartner Magic Quadrant leader in APM. On April 28, 2014, New Relic raised $100 million in a financing round led by BlackRock and Passport Capital, with participation from T. Rowe Price Associates and Wellington Management, bringing total funding to $215 million. Sources report the company's valuation at over $1.2 billion post-round, with Clay specifying over $1 billion explicitly for this round. Funds were allocated to product development, international expansion (including a new Dublin office), large enterprise growth, and real-time analytics enhancements. For the fiscal year ended March 31, 2014, New Relic reported $63.2 million in revenue, up from $29.7 million in 2013 and $11.7 million in 2012, with an 83% gross margin but $40.2 million net loss. Sales and marketing expenses consumed 92% of revenue that year. The round built on prior financings, including $80 million in February 2013 led by Insight Partners at a $750 million valuation. New Relic went public later in December 2014, raising $105 million at over $1 billion valuation with $85 million trailing 12-month sales ended September 30, 2014. Investors included prior backers like Benchmark (22% ownership pre-IPO), Trinity Ventures (13.6%), and Allen & Company as advisor.
Feb 2013Undisclosed stageInsight Partners (lead); Tenaya Capital; Dragoneer; Benchmark; T. Rowe Price; Passport Ventures; Allen & Company; Trinity Ventures$80M$750MNew Relic, a SaaS-based application performance management provider, raised $80 million in mezzanine financing on February 5, 2013, led by Insight Venture Partners with participation from T. Rowe Price Associates, Dragoneer Investment Group, Passport Ventures, and existing investors Allen & Company, Benchmark Capital, Trinity Ventures, and Tenaya Capital. The post-money valuation was $750 million, as stated by CEO Lew Cirne. Funds were allocated to expand into mobile application management, enter the European market, grow the enterprise footprint, and prepare for a future IPO. The round followed a record-breaking 2012, where New Relic nearly tripled its revenue growth year-over-year, more than doubled its customer base to 35,000 active accounts, and added over 1,200 paying customers in Q4 alone. The company processed 85 billion metrics daily across 1 million app instances, establishing the largest repository of application data. It served thousands of major clients including ESPN, Nike, and Sony, focusing on real-time visibility into application health for cloud, web, and mobile environments. New Relic competed in the growing application performance monitoring space against players like AppDynamics, capitalizing on cloud computing trends and enterprise needs for monitoring apps and server clusters. Plans for 2013 included relocating its San Francisco headquarters, broadening mobile capabilities, and international expansion. By late 2013, customer accounts grew to 80,000, with metrics collection exceeding 200 billion daily and over 500 new enterprise customers added.

Who has invested in New Relic?

11 investors have backed New Relic across its funding rounds, including T. Rowe Price, Insight Partners, Fidelity, BlackRock, Benchmark and Wellington Management.

Lead investors include BlackRock and Insight Partners.


New Relic Investors

Investors in New Relic by funding rounds participated
InvestorHQRoundsRoleFirst check
T. Rowe PriceUnited StatesBaltimore, MD2ParticipantFeb 2013
Tenaya CapitalUnited StatesSan Francisco, CA1ParticipantFeb 2013
DragoneerUnited StatesSan Francisco, CA1ParticipantFeb 2013
Wellington ManagementUnited StatesBoston, MA1ParticipantApr 2014
FidelityUnited StatesBoston, MA1ParticipantApr 2014
BenchmarkUnited StatesSan Francisco, CA1ParticipantFeb 2013
BlackRockUnited StatesUnited States1LeadApr 2014
Passport VenturesUnited StatesSan Francisco, CA1ParticipantFeb 2013
Insight PartnersUnited StatesNew York City, NY1LeadFeb 2013

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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

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Acquisitions by New Relic

New Relic has acquired 8 companies to date.

Last acquisition by New Relic was on October 21st 2021. New Relic acquired CodeStream for $29M.


Latest Acquisitions by New Relic

CodeStream
Pixie Labs
IOpipe
SignifAI
Description
CodeStream is a developer collaboration tool acquired by New Relic in 2021 that integrates Slack-style chat into VS Code, JetBrains, and Eclipse IDEs. It enables in-context code reviews, shareable snippets, and Jira ticket linking directly from editors. CodeStream supports telemetry sharing and pull request discussions to streamline team workflows.
Pixie Labs is a Shoreditch-based digital product studio in London creating mobile apps and prototypes. The team builds Instagram marketing tools like Tagstar, Bitcoin trading apps such as BitFriends, and Twitter management platforms named Echelon. Pixie Labs consults for The Times and HomeServe on social media and energy monitoring applications.
IOpipe is a serverless DevOps platform processing billions of events monthly for application monitoring and optimization. It supports AWS Lambda and other serverless runtimes with observability tools for performance tracing and debugging. The remote-first company builds products in collaboration with developer communities.
SignifAI is a Sunnyvale, California-headquartered AIOps platform using machine learning to automate IT incident resolution for enterprises. With offices in Tel Aviv, Israel, the company analyzes logs, metrics, and traces to pinpoint root causes, reducing MTTR by integrating with Splunk, Datadog, and ServiceNow. SignifAI serves tech firms like Check Point and LivePerson, achieving 90% automation rates in production environments. Founded in 2018, it raised $12 million in Series A funding.
HQ CountryUnited StatesUnited KingdomUnited StatesUnited States
HQ City
New York City, NY
London
Seattle, WA
San Francisco, CA
Deal Date21 Oct 202110 Dec 20201 Nov 20196 Feb 2019
Valuation$29M$108Mundisclosed$37M
EV/Revenue
EV/EBITDA

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New Relic Competitors

New Relic competitors include listed companies like ServiceNow, SenseTime Group, GDS Holdings and Nextdc, and private ones like Grafana Labs and Contentsquare.

Public and private companies comparable to New Relic
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ServiceNowUnited StatesUnited StatesPublicly listed$13B$2.6B$143B9.6x
SenseTime GroupChinaChinaPublicly listed$748M($70M)$6.2B5.8x
GDS HoldingsChinaChinaPublicly listed$1.7B$882M$6.2B6.3x
Grafana LabsUnited StatesNew York City, NYPrivate$400M-$6B15.0x
NextdcAustraliaAustraliaPublicly listed$353M$138M$6B19.2x
ContentsquareFranceParisPrivate--$5.6B-

New Relic Public Comps

New Relic is no longer listed, but its public comps include SenseTime Group, GDS Holdings, Nextdc, Presight AI, Computacenter, Wangsu, Applied Digital, United Internet, IONOS Group and Oracle Corp Japan.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
SenseTime Group$748M($70M)6.9x5.8x(73.5x)113.7x
GDS Holdings$1.7B$882M6.8x6.3x13.1x13.6x
Nextdc$353M$138M21.9x19.2x56.0x38.3x
Presight AI$825M$214M6.3x5.4x24.4x20.8x
Computacenter$12B$440M0.6x0.4x16.5x12.0x
Wangsu$695M$138M6.4x6.0x32.6x30.5x
Applied Digital$611M($85M)21.3x20.1x(154.0x)78.1x
United Internet$7B$1.5B1.4x1.4x6.8x6.4x

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Common questions about New Relic

When was New Relic founded?New Relic was founded in 2008.
Where is New Relic headquartered?New Relic is headquartered in San Francisco, CA, United States.
Is New Relic publicly listed?No, New Relic was acquired by Francisco Partners and TPG in July 2023.
Who acquired New Relic?New Relic was acquired by Francisco Partners and TPG in July 2023.
How much was New Relic acquired for?New Relic was acquired for $6.5B in July 2023, a 7.0x revenue multiple.
What is New Relic's valuation?New Relic was last valued at $1B in its undisclosed-stage round in April 2014.
How much funding has New Relic raised?New Relic has raised $180M across 2 funding rounds.
What was New Relic's last funding round?New Relic's last funding round was a $100M undisclosed-stage round in April 2014, led by BlackRock.
Who are New Relic's investors?New Relic's investors include T. Rowe Price, Tenaya Capital, Dragoneer, Wellington Management, Fidelity, Benchmark, BlackRock, Passport Ventures, Insight Partners, Allen & Company and 1 other.
What is New Relic's revenue?New Relic's latest recorded revenue is $63M (April 2014).
What is New Relic's revenue multiple?New Relic's latest valuation implies a 15.9x revenue multiple ($1B valuation on $63M of revenue).
Which companies are comparable to New Relic?Companies comparable to New Relic include ServiceNow, SenseTime Group, GDS Holdings, Grafana Labs, Nextdc and Contentsquare.
How many companies has New Relic acquired?New Relic has acquired 8 companies, including CodeStream, Pixie Labs, IOpipe, SignifAI and CoScale.
What was the largest acquisition by New Relic?The $108M acquisition of Pixie Labs in December 2020 is the largest acquisition New Relic has made to date.

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