UTest raises $5M for crowdsourced software testing

UTest, a marketplace where companies can “crowdsource” the testing of their software, has raised $5 million in a second round of funding.

Chief executive Doron Reuveni describes the outsourced testing industry as “an old space that has been there for a while, and it needs innovation.” By creating a software-as-a-service platform for testing, by allowing companies to assemble a team of testers (rather than just hiring a single person or company) and by charging through a pay-per-performance model (usually a set fee for each bug found or for useful feedback), Reuveni says uTest offers a better deal than traditional outsourcing companies, or even newer outsourcing/remote work web sites like Elance and Rentacoder.

One of the most impressive things about uTest is the size of its testing community — almost 12,000 software professionals in 144 countries. Reuveni says his customers include both startups who couldn’t afford a traditional quality assurance team and larger companies looking for a better way to do QA. (The only bigger customer he will identify is email marketing company Constant Contact.)

Next, Reuveni says uTest will expand its services into a larger chunk of the product cycle, and into areas like mobile testing and usability testing.

The round was led by Longworth Venture Partners and Egan-Managed Capital, with participation from existing investors Mesco and Massachussetts Technology Development Corp. The company raised a $2.3 million first round last year.