Accel led a $32 million Series A funding round in Podium, a SaaS platform that helps connect local businesses and consumers through messaging tools and online reviews. Other investors in the funding round included Summit Partners, GV and previous investor Y Combinator. Previously, Podium raised $4 million over two seed rounds.
Podium, a SaaS platform that enables local businesses and consumers to more effectively and conveniently interact through messaging tools and online reviews, today announced it has raised $32 million in Series A funding in a round led by Accel, with participation from Summit Partners, GV (formerly Google Ventures), and previous investor Y Combinator.
Prior to Podium’s Series A, the company had raised $4 million over two seed rounds. That $4 million was enough to drive an increase of over 600 percent in year-over-year recurring revenue, taking the company to over $12 million in ARR by the end of 2016. Podium has also grown its headcount over 1000 percent to build a team of 175 full-time employees to-date, and acquired a customer roster that spans across the United States, totalling over 80,000 users. This growth has been entirely based on Podium’s first product that helps local businesses generate and report on reviews and feedback. After starting with SMBs in late 2014, the company is now seeing significant growth with mid-market and enterprise customers.
“We rarely see such efficient growth paired with such a large market opportunity,” said Miles Clements of Accel. “Podium’s growth is on par with some of the most well-known tech companies in the world, and we believe that’s due to the technology, the team, and a unique approach to an often neglected market: local businesses.”
Podium was founded on the principle that local businesses need help building an authentic story online. While reviews are a critical piece of the marketing toolkit for these businesses, Podium’s solution recognizes that they are just one piece of the puzzle. The company’s technology aims to impact the entire customer lifecycle, boosting consumer engagement even further.
“We believe Podium’s vision – to power business to consumer interactions throughout the entire customer journey – is extraordinarily compelling,” said Andy Collins of Summit Partners. “The majority of consumer discovery happens online, but a vast majority of purchases still occur offline. Podium has the potential to meaningfully influence the massive end market of local commerce.”
Podium’s Messenger product is a new addition to the company’s platform that enables businesses to interact with their customers via convenient channels they are already using, such as text message. The goal is to give businesses the power to consolidate customer interactions into a single platform to improve events like scheduling, updates, or general questions.
“Businesses are rapidly learning that online interactions, online reviews, or digital communications, lead to offline, face-to-face interactions and ultimately to purchase decisions,” said Eric Rea, CEO and co-founder of Podium. “That understanding has made us hyperfocused on improving the relationship between local business and consumers. Our goal is to make interactions more convenient for consumers and more productive for businesses. We believe we are the best in the world at helping local businesses tell their story through online reviews, and we will continue to work tirelessly to build on that foundation by providing technology solutions that benefit both the businesses and their end-consumer.”
Podium helps businesses drive customer interaction in the form of online reviews to increase visibility, improve business operations, and drive purchase decisions. Podium serves 80,000+ users across nearly 10,000 businesses and is redefining the modern relationship between businesses and customers. Headquartered in Lehi, Utah, and founded in 2014, Podium has received funding from Accel, Summit Partners, GV (formerly Google Ventures), and Y Combinator. To learn more, visit www.podium.com or contact us at firstname.lastname@example.org.
Accel is a leading venture capital firm that invests in people and their companies from the earliest days through all phases of private company growth. Atlassian, Braintree, Cloudera, DJI, Dropbox, Dropcam, Etsy, Facebook, Flipkart, Jet, Lookout Security, Qualtrics, Slack, Spotify, Supercell, and Vox Media are among the companies the firm has backed over the past 30 years. The firm seeks to understand entrepreneurs as individuals, appreciate their originality and play to their strengths. Because greatness doesn’t have a stereotype. For more, visit www.accel.com, www.facebook.com/accel or www.twitter.com/accel.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently investing more than $9.5 billion into growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the global economy and has invested in more than 440 companies in technology, healthcare, life sciences and other growth industries. These companies have completed more than 140 public equity offerings, and more than 170 have been acquired through strategic mergers and sales. Notable technology companies financed by Summit include Acacia Communications, Avast, AvePoint, Gainsight, Hyperion Solutions, Infor, McAfee, Perforce, RiskIQ, Telerik, Uber, Ubiquiti Networks and WebEx. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners LLP, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners LLP is a limited liability partnership registered in England and Wales with registered number OC388179 and its registered office is at 20–22 Bedford Row, London, WC1R 4JS, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.