May 25, 2022

Not too long ago, Docker looked like he was on the edge. In 2019, the company sold its business and decided to focus solely on the developer audience with a range of commercial and open source tools. It was a huge gamble for a six-year-old company to sell the part of itself that was most profitable at the time and completely change its focus.

A few months ago, the company announced that its annual recurring income (ARR) had quadrupled to over $50 million, just two years after the restructuring decision was made. The company today announced a $105 million Series C investment at a $2.1 billion valuation.

CEO Scott Johnson, who has worked for the company in various roles over the years, made a very clear bet on the developer community and it paid off for him as he was able to build a successful business model after the restructuring.

“Two and a half years ago, when we had a product that developers loved; Even though we had popular open source initial assets and we had a well-known brand, it was not clear if we could take it all and successfully remake the business model with the product strategy needed to go to market. question,” Johnson said.

“We are happy to be here after two and a half years. We didn’t always make the right decisions or make the right bets, but most of our bets paid off and helped developers with the products we offer,” he said.

What’s more, at a time when investment is slowing down, Johnston reports that investors flocked to him, had plenty of opportunities and could have gotten more out of it. “It was undesirable and we had a choice. We had several specifications and they were all competitive. And we were able to pick up over 105 that we collected. And so we’re lucky that we have a choice.”

He believes that apart from the known number of open source components popular among developers, the potential market for developer tools is huge, especially as the demand for applications continues to grow. According to him, the combination of these two factors aroused investor interest in this round.

When the company was restructured in 2019, the staff was reduced to 70 people. Today, the company has over 150 employees and this number is expected to double next year. While the company is recruiting, Johnson said he has accurate statistics on creating a diverse workforce.

“So we have an internal KPI, a key performance indicator that is defined in terms of diversity. And we are talking about the level of the company, but after all, all managers and leaders also have to deal with this for their actions. And then to take it up a notch, that’s a number that we also had to share with the board of directors,” he said.

He said he sees it weekly. “We have a weekly review of our progress in our recruiting and recruiting funnel and there is a clear measure of diversity in this weekly recruiting. And so, you know why it’s coming back, don’t you? And that’s because different teams are better teams. This is not only better from a human point of view, but clearly better from the point of view of capitalist productivity. Therefore, we deeply believe in this and consider ourselves responsible for the realization of this belief.”

Today’s investment is led by new investor Bain Capital Ventures, with participation from Atlassian Ventures, Citi Ventures, Vertex Ventures and Four Rivers, as well as existing investors Benchmark Capital, Insight Partners and Tribe Capital. The company raised $163 million in its current form at a $2.1 billion valuation. Ben’s Enrique will join the Docker Board of Directors in accordance with the terms of the Salem Agreement.

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