), LinkedIn (NASDAQ:
), Flipboard, Evernote, Pinterest, PayPal and eBay (NASDAQ:
) are just some of the companies that use Bitbar's lead product,
Testdroid. While it might sound like something out of science
fiction, Testdroid is actually a tool that allows mobile
developers to virtually test their products on hundreds of
"If you're a mobile developer and you need to test, let's say
LinkedIn, you would have to go to every single one of those
devices to make sure that there were no bugs with that specific
version of Android and that model of phone," said Scott Sage, a
Principal at DFJ Esprit, one of the firms that invested $3
million into Bitbar this week. "So it's a very laborious process.
Bitbar is about saving the developer time and giving them the
kind of analytics that they need."
Sage told Benzinga that while there were many reasons for the
investment, Bitbar's main attraction was its customer list.
Jason Ball, an Investment Director at Qualcomm Ventures -- the
investing arm of Qualcomm (NASDAQ:
) -- was also impressed by the customers that Bitbar had
"They have a stunning customer list," Ball told Benzinga.
"Very small company out of Helsinki, Finland. They've got
Flipboard, Evernote, Pinterest, PayPal… The list goes on and
"I'm not really sure what they put in the water in Helsinki
because two or three of the fastest-growing companies that we've
ever looked at are based there," said Sage, referring to Bitbar,
Supercell and Rovio.
The latter company is actually based in Espoo, Finland, which
is part of the Helsinki Metropolitan Area, and just happens to be
the home of Nokia (NYSE:
While the customer list was important, Sage said that he
started by looking at Bitbar's team.
"Are these guys going to be able to scale with the company?"
Sage questioned. "Did they have the right skill set to go from 10
people to 40 people in a relatively short period of time? That's
one of the first things we assess. If they don't have the right
team, we tend to back away. Just looking back, we've always had
problems with those kinds of teams. So we really need to like the
Sage also said that DFJ will look at the product. He referred
to Testdroid as a "world-class" tool.
Similarly, Qualcomm takes a look at three key things before
making an investment.
"I have to really believe in the team," said Ball. "I have to
really love the product. I have to believe the company has the
chance to be a very successful business. Clearly [it's]
mobile-only, so I guess you could add a fourth to the list."
Ball said that he first looked at Bitbar because of the
"significant market share" that Qualcomm has in Android
"For developers that are building for Android, dealing with
fragmentation is difficult," Ball explained. "It's just a fact of
the market. Bitbar gives developers a good tool to deal with that
fragmentation in a relatively painless way. It makes it easier
for developers to develop for Android."
In addition to Qualcomm Ventures and DFJ Esprit, Bitbar also
received new investments from Creathor Venture (which led the
round) and Finnvera Venture Capital. Tekes, a Finnish funding
agency, provided additional funds.
Bitbar CEO Marko Kaasila told Benzinga that his company will
use the investment to expand beyond Testroid.
"We will expand from the testing tools to mobile development
tools," said Kaasila. "Our customers have big needs for more than
just testing. They have needs in service and app designs, as well
as post-launch things like how their apps perform in the
Prior to Bitbar, Kaasila held a number of managerial positions
at Microcell, which was sold to Flextronics (NASDAQ:
) for $200 million.
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
louis(at)benzingapro(dot)com. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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