Australian online bug tracking startup BugHerd has secured AU$1 million in Series A funding, with Sydney's tech-focused Tank Stream Ventures (TSV) and Starfish Ventures joining forces with the US-based 500 startups to back the young company.
BugHerd, a bug-tracking platform for web developers and designers, was founded in 2011 by Alan Downie and Matt Milosavljevic as a means of helping to manage website development issues.
Now, with the startup claiming — by its own estimation — more than 50,000 users worldwide and around 1,000 new business customers joining each month, it represented a promising business for Tank Stream Ventures to add to its software-as-a-service investment portfolio.
"Software is present more than ever in today's world, and BugHerd has an ambitious vision to transform the way businesses develop online projects in a collaborative way," said Rui Rodrigues, investment manager of Tank Stream Ventures, which along with Starfish Ventures provided the bulk of the investment.
"TVS has a strong focus on software-as-a-service businesses, and we're thrilled to be working with the BugHerd team, who we believe have managed to build significant traction and are well placed to execute on that vision," he said.
Meanwhile, for Starfish Ventures investment director Anthony Glenning, the appeal for the investment lay in the growth the startup company has shown to date.
"The expanded product offering envisioned is set to continue that high growth trajectory. Starfish is excited to participate again in helping BugHerd achieve its goals," said Glenning.
BugHerd claims more than a few well-known digital agencies as its clients, including JWT, Publicis, DDB, and BBDO, which together do work for some of the world's most recognisable brands, such as McDonald's, Ford, and Renault.
That client footprint was enough to attract the interest of 500 Startups founder Dave McClure, who said that he is increasingly looking outside the US for promising investments.
"Although Silicon Valley is still a Mecca for startups, most of the world's growth markets are outside the US. That's where we plan to invest," he said.
BugHerd's co-founders said that the new funds would allow the company to accelerate its growth plans with a focus on delivering visual, client-focused tools for digital and creative agencies.
In November last year, TSV was one of a number of investors, including Sunrise's David Koch, to provide funding for local personal finance startup Pocketbook, and in September last year contributed a AU$3 million capital raising effort for Australian taxi industry startup GoCatch.