The software-as-a-service frontegg ltd user management platform. announced that it received another big funding today, closing a $40 million round.
The Series B raise was co-led by Stripes and Insight Partners and brings the company’s total amount raised to date to $70 million.
Frontegg has created a new “SaaS-as-a-service platform” which includes a number of pre-built components that developers can easily add to the SaaS business applications they create, saving them the hassle of adding these elements themselves. The idea is that it eliminates the tedious work of creating essential functionality common to all SaaS applications. This means developers have more time to focus on the features that make their apps different.
Components common to all SaaS applications include things like audit log handlers. Frontegg provides one that is pre-built, which can be white-labeled and then integrated into any new SaaS offering.
Frontegg said the new funds announced today will help it capitalize on a huge gap in a SaaS market that Gartner Inc. predicts will be worth $208 billion by 2023. As the company explains , there is a big problem that popular user management solutions such as Auth0 and Okta, which are widely used in the enterprise today, do not work well with business-to-business oriented applications.
The problem is that these solutions focus on individual users rather than organizations and don’t support enterprise-level settings, such as requiring a password of a certain length. Additionally, they only provide sign-in and sign-up functionality, but don’t extend to support for team member invitations, roles, permissions, and subscriptions, Frontegg explains.
So while many companies use products like Auth0 and Okta, they have to do a lot of tinkering, hacking, and patching to make them work with their SaaS-based B2B applications. This explains why some of the largest B2B SaaS application providers, such as Airtable Inc., Slack and Notion Labs Inc., all use their own custom user management software, Frontegg said.
“Business app users these days expect to seamlessly enroll in products using modern authentication methods, invite team members, control their roles, set organization-wide security and upgrade subscription levels,” said Frontegg Co-Founder and CEO Sagi Rodin. “Building these capabilities in-house is resource-intensive due to their complexity, sensitivity and scope. Existing user management products offer partial solutions because they only address authentication and are designed to manage individuals, not teams and organizations. »
Frontegg says it’s solving user management issues for B2B SaaS app developers with key upgrades to its platform that can handle everything from signup to enterprise-wide updates. ‘organization. For example, he said he added the most advanced no-code builder for login and registration pages, allowing product and marketing teams to make customizations and designs without any coding.
At the same time, it added a “Backoffice” feature that allows B2B SaaS companies to see and manage all accounts that have signed up for a specific application. Finally, it added support for subscriptions, making it easier for B2B SaaS companies to offer free trials, freemium tiers, and upgrades, while allowing product teams to adjust pricing tiers to using no-code tools.
Frontegg said its platform now serves as the user management infrastructure for more than 150 B2B SaaS companies, including Datadog Inc., Cyber Hunters Ltd., Okera Inc. and Tomorrow Cos. Inc.
“Building and maintaining world-class user management has become an increasingly heavy burden for development teams,” said Stripes Partner Saagar Kulkarni. “In turbulent economic times like this, it’s more important than ever for B2B SaaS companies to get to market quickly, but with a mature product that matches today’s user expectations for business tools.