Act-On Software, a developer of marketing automation software, has raised $42 million in new funding led by Technology Crossover Ventures. Existing investors Norwest Venture Partners, Trinity Ventures, US Venture Partners and Voyager Capital also participated. Act-On previously raised $32 million in funding since it was founded in 2008. As part of the funding, David Yuan, general partner at TCV, has joined the board.
FASTEST GROWING MARKETING AUTOMATION COMPANY SECURES $42 MILLION IN VENTURE FINANCING LED BY TECHNOLOGY CROSSOVER VENTURES
Mezzanine Round Funding to Fuel Rapid Commercial Expansion
BEAVERTON, Ore., April 15, 2014 – Act-On Software, the leading marketing automation provider for small and mid-market enterprises, today announced it has secured $42 million in new venture financing. Technology Crossover Ventures (TCV) led the round, with existing investors Norwest Venture Partners, Trinity Ventures, US Venture Partners, and Voyager Capital also participating. Act-On will use the new capital to accelerate its business on all fronts, including new product development, sales expansion, and brand recognition.
Marketing automation is one of the fastest growing categories in business software, increasing 60 percent annually and expected to reach $1.2 billion in 2014 according to Raab Associates Inc. Act-On grew at almost twice that rate in 2013 and expects this rate of growth to continue. Small and mid-size businesses and departments of large enterprises have turned to Act-On to execute integrated, multi-channel marketing and lead nurturing campaigns.
“It is very exciting to see marketing automation evolving to move beyond tech companies, and getting broad adoption across all company sizes and industry verticals,” said Raghu Raghavan, CEO of Act-On Software. “We are the forefront of this movement. We have grown rapidly to over 2,000 customers now, but there are at least 200,000 companies in North America alone that are in our sweet spot. We are very pleased to have the backing of a long-term investor like TCV as we seek to take full advantage of this enormous opportunity.”
The new $42 million investment is primary capital into the company to further fuel its revenue, customer, and employee growth. In total, Act-On has raised $74 million since it was founded in 2008. Along with this new round of funding, David Yuan, general partner at TCV, joins Act-On’s board of directors.
TCV is one of the largest providers of growth capital to premier technology companies, and has significant experience investing in late-stage, high-growth companies. With over 50 initial public offerings and several billion-dollar companies in its investment history, including ExactTarget in email marketing, Facebook in social media infrastructure, and Splunk in big data management, TCV brings both domain expertise and experience in building category-leading stand-alone companies.
“Through an elegant product and a frictionless go-to-market model, Act-On has brought the power of marketing automation to small and mid-sized companies. This segment represents an enormous, greenfield market, and we’re excited by Act-On’s emerging leadership. We’ve been following Act-On for the past couple of years and look forward to working with the team to build a category leader,” said David Yuan, general partner at TCV.
Act-On continues to stand out amongst the top marketing automation vendors; the company was named a leader in the Q1 2014 Forrester Wave™ report on lead-to-revenue management platform vendors, and received the Frost & Sullivan 2014 Entrepreneurial Company of the Year award. In 2013, Act-On was also selected by Forbes as one of America’s Most Promising Companies, chosen by Inc. Magazine for its Inc. 500 List of Fastest Growing Companies, and named to the Deloitte Technology Fast 500™ list.
Act-On is a leading provider of integrated marketing automation software, helping 2000+ companies to tie inbound, outbound, and nurturing programs together – across email, web, mobile, and social. Users achieve superior return on marketing investment through sophisticated demographic and behavioral data that increases engagement throughout the customer lifecycle, reduces the cost of acquisition, and strengthens loyalty. Act-On’s fresh approach to marketing automation gives sales and marketing professionals full functionality without the complexity other systems impose, and makes campaign creation and program execution easier and faster. Act-On offers a best-in-class professional services team, dedicated customer support, and the APEX ecosystem of partners to provide clients with the tools they need to achieve marketing success.