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Linear, Atlassian Competitor, Secures Funding at $1.25 Billion Valuation

Introduction

Linear, an enterprise software maker, has successfully raised $82 million in a Series C funding round, achieving a valuation of $1.25 billion.

Context

Led by venture capital fund Accel, this funding round also saw participation from existing investors 01A and Sequoia, along with new investors Seven Seven Six and Designer Fund. Linear specializes in software development and project planning tools, competing directly with Atlassian's project management tool, Jira.

Developments

The company reported an impressive 280% growth in profits over the past year and now services over 15,000 customers, including notable AI companies such as OpenAI, Scale AI, and Perplexity. CEO Karri Saarinen indicated that the recent funding will be utilized to expand product offerings and attract larger enterprises.

Linear distinguishes itself by focusing on specific product development use cases rather than offering extensive customization that may overwhelm users. Features include a built-in "triage inbox" for managing software bugs and feature requests, as well as tools for managing software development cycles known as sprints. Additionally, the software is designed to enable collaboration between humans and AI, facilitating a more integrated approach to software development.

Miles Clements, a partner at Accel and Linear investor, emphasized the company's commitment to customer-first product development amidst a market flooded with unwanted AI solutions. He noted that Linear prioritizes understanding user needs to deliver valuable tools tailored to their requirements.

Conclusion

Linear’s recent funding and focus on user-centric design position it as a strong competitor in the software development landscape, especially as it seeks to expand its offerings and customer base in the rapidly evolving AI era.