From bizjournals.com:

Ruby on Rails application performance management company New Relic Inc. said Thursday it received $3.5 million in a first round of funding.

Menlo Park-based New Relic said funding came from Benchmark Capital.

The company plans to use the funds to drive product development and to expand sales and marketing programs.

The take on the deal from Northwest Innovation News (subscription required) is that New Relic will use the funds to expand in the Portland market by hiring additional Ruby on Rails talent. Good news for the Portland software market.