San Francisco-based Optimizely, a YCombinator-backed company that makes website optimization tools for enterprises and small businesses, has raised a new round of funding from Battery Ventures, Google Ventures, and InterWest Partners. Details of the round were not disclosed.
Optimizely, the YCombinator-backed company that provides a range of website optimization tools to enterprises, agencies and small businesses alike, announced today a new round of funding from Battery Ventures, Google Ventures, and InterWest Partners.
The two-year-old company, started by former Google product managers Dan Siroker and Pete Koomen, is the fastest growing A/B and multivariate testing platform in the world. Over 2,000 enterprises have adopted Optimizely’s platform including Starbucks, Disney, Salesforce, eBay, and Crate&Barrel. The company’s revenues have increased 1,266 percent year-over-year and it has hit profitability. Optimizely plans to utilize the new funding to continue to aggressively scale its team and operations worldwide with the aim of leapfrogging the 16-year-old incumbent, Omniture, which was bought by Adobe for $1.8 billion in 2009.
“In terms of adoption by the top 10,000 global websites we recently surpassed Google Website Optimizer and are on pace to surpass Omniture Test & Target later this year,” said Siroker.
“Optimizely’s strong traction in the marketplace speaks for itself. We believe they have the team and the product to quickly become the category leader,” said Doug Pepper, General Partner, InterWest Partners and Board Member of Marketo and Spredfast.
Since its platform launch in 2010, Optimizely has continued to expand its efforts by offering one- click integrations with popular web analytics tools and the consistent release of new features designed to enable marketers to make better data-driven decisions.
Siroker saw a need for a new kind of A/B testing platform when he was the Director of Analytics for the Obama 2008 presidential campaign. His analytics team relied on the use of A/B and multivariate testing to maximize email sign-ups, volunteers, and donations to raise over $100 million for the campaign. After the campaign, Siroker teamed up with Koomen to deliver an easy- to-use A/B and multivariate testing solution that did not need the technical skills required of existing offerings.
“Optimizely has the potential to turn the industry upside-down, as the addressable market for website optimization continues to explode and the use cases for multivariate testing are growing in complexity with the rise of big data and emergence of the digital marketer,” said Battery Ventures General Partner, Neeraj Agrawal. “Not to mention from the minute you meet Dan and Pete, it’s clear they have the will and technology chops to bypass the incumbents and turn Optimizely into a real category leader.”
Optimizely is the fastest growing website optimization platform in the world. Over 2,000 enterprises have adopted Optimizely’s platform including Starbucks, Disney, Salesforce, eBay, and Crate&Barrel. Optimizely enables marketers to make better data-driven decisions through A/B and multivariate testing. Optimizely is headquartered in downtown San Francisco, CA.