Bootstrapped for 8 years, Xensam now secures $40m for AI managing software assets

Software asset management, which helps companies save money, is still a hot area, and Xensam, a startup from Stockholm, just raised $40 million in its first outside funding since its inception eight years ago.

The funding comes from Expedition Growth Capital in London. Oskar Fösker, Xensam’s CEO, plans to use it for developing its AI technology, hiring more staff (currently 100 employees), and entering the U.S. market.

Xensam remains majority-owned by the Fösker brothers. With 200 customers, including Volvo’s Polestar and Northvolt, the company's annual recurring revenues are growing at a rate of 126% annually.

Software asset management is crucial, considering the $900 billion spent globally on enterprise software in 2023. Xensam emerged from the competitive landscape, founded by the Fösker brothers, who previously worked at Snow Software.

Xensam uses AI to comprehensively scan and understand an organization’s software usage across cloud and on-premise environments.

The startup’s approach sets it apart by using AI to handle large amounts of data in the software normalization process, ensuring accurate insights into software usage.

Xensam's bootstrapped journey reflects its commitment to sustainability. The decision to take VC funding was based on finding an investor that aligns with the company's cultural values.

Expedition Growth Capital, impressed by Xensam's growth, sees the startup as critical in helping companies manage software usage efficiently, marking its first external investment.