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Metronome's usage-based billing software finds hit in AI as the startup raises $43M in fresh capital | TechCrunch

Jan 31, 2024 - news.bensbites.co
Metronome, a startup that assists software companies in implementing usage-based billing, has raised $43 million in a Series B funding round led by NEA. The round also saw participation from existing investors Andreessen Horowitz and General Catalyst, bringing the company's total funding to over $78 million since its inception in 2019. Metronome, founded by Dropbox alumni Kevin Liu and Scott Woody, reported a six-fold increase in ARR last year as more firms shifted from subscription to usage-based models. The company's clients include OpenAI, Anthropic, Databricks, and Nvidia.

The startup plans to use the new funding to advance its product roadmap and expand its team, particularly in R&D and customer-facing roles. Metronome's platform helps companies reduce the engineering investment needed for billing integration and maintenance, and facilitates the transition to cloud and/or usage-based revenue models. The company has seen significant interest from AI companies, as the entire AI stack has usage-based COGS. As part of the funding round, NEA partner Hilarie Koplow-McAdams will join Metronome’s board of directors.

Key takeaways:

  • Metronome, a startup that assists software companies with usage-based billing, has raised $43 million in a Series B funding round led by NEA, bringing its total amount raised to over $78 million since 2019.
  • The company saw a 6x increase in ARR last year as more companies transitioned from subscription to usage-based models. Its customers include startups like OpenAI and Anthropic and enterprise companies like Databricks and Nvidia.
  • Metronome claims to reduce the engineering investment required by companies for billing integration and maintenance, and has seen significant interest from AI companies looking to monetize new products.
  • The company doubled its headcount to 66 full-time employees over the last year and plans to use its new funding to advance on its product roadmap and continue hiring, particularly across its R&D and customer-facing teams.
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