Investment in Hatica: Engineering Analytics to boost developer productivity
The demand for software developers is ever increasing! Digitisation, cloud adoption and software stack globally are driving this demand, amongst other things, but there is not enough supply. According to the State of the Developer Nation report, in 2021 there were 26.8Mn active software developers in the world and they predict it to reach 45Mn by 2030. This makes it a very large and growing market.
Software developers use multiple tools for their daily work and a lot of precious development time is lost in low value work of context switching between tools, collaboration, documentation, version control, duct taping the issues etc. There is a developer experience gap. Strong dev tools can bridge this developer experience gap and improve a developer’s experience across the entire workflow.
Dev tools are an array of products focussed on developers to help them build, deploy and collaborate on a daily basis. Some of the global leaders in this market are Github, Slack, JIRA, Browserstack, Snowflake, Postman and Datadog. Dev tools have seen a massive growth in the last few years. There are more than 73Mn developers on Github, with 16Mn+ developers added in 2021 alone. Snowflake reported stronger than expected Q4 2021, revenue rising by ~117% to $107Mn. A shift has been witnessed, from ‘Build and Buy’ decision making mentality to ‘Buy and Build’ approach. Developers are now open to buying platforms which can help them decrease the time of development.
This shift is further fueled by remote working. The Dev tools market has experienced tailwinds from this increased digital adoption. The pandemic forced teams to shift remotely, which has further aggravated the problem of collaboration and communication. Many SaaS tools are building for the future of work to make this transition easier, without affecting the productivity of teams. Developers are one of the most expensive resources of a tech startup, and any reduction in productivity is a big loss in terms of money and timeline of projects. According to U.S. News, the median annual salary for a software developer is $101,790, which will bring the cost of the average developer minute to ~$0.81. Therefore, every wasted minute of developers potentially impacts the company’s cost structure and profitability. Companies are now becoming more receptive to dev tools to ensure that most of the developers’ time is spent on actual development.
High performing engineering teams are essential for the success of companies as it can release products to market faster. There is a need for tools which can empower them to manage their daily tasks- context switching, collaboration, etc. in an efficient way. Developer productivity tools is a massive emerging market to solve this problem.
We are happy to back Hatica, as it aligns well with our thesis on developer productivity and future of work. Hatica has been cofounded by a couple of experienced techies, building a global SaaS tool to provide engineering analytics platform to boost developer productivity. Embedding the culture of remote work internally, they have built a powerful product to improve engineering efficiency and optimize dev workflows. Hatica has early customers from US, Europe and India. We are thrilled to be part of this journey and believe it has a potential to become one of the top engineering analytics platforms globally.