Sat 1 Jul 2006
Constant Contact Grabs $15 Million
Posted by David under B2B , Email Marketing , Funding , Start-Up , Tech , Waltham , Web
Waltham based email marketing outfit Constant Contact recently announced a $15 million round of venture capital led by Greylock Partners ($10 million) and also $5 million from their existing investors, including Commonwealth Capital Ventures, Hudson Ventures, Longworth Venture Partners, and Morgan Stanley Venture Partners. Constant Contact will use the proceeds to fund its current and future growth opportunities.
Hopefully they will use to update the look-and-feel of their property which is a bit dated. However, they do really well and are one of the few vendors in this space to actively market offline as well including drive-time radio.
The company now claims over 65,000 customers - from retail, restaurants, and spas to business services, consultants, nonprofits, and associations. In 2005, Constant Contact doubled its customer base from 25,000 to 50,000 and saw an 84 percent increase in revenue. In addition, the Company experienced a two-year revenue growth of 231 percent between 2003 and 2005. Constant Contact is pla50 people in 2006, bringing the total workforce to more than 200. With a base price of $15 (there is a very small free package) you can do the math to figure out their estimated cash flow.
“Our phenomenal growth in the past few years has shown the important role email marketing plays in the growth and success of thousands of small businesses and organizations across the U.S.,” said Gail Goodman, CEO of Constant Contact. “While we have been operating cash flow positive for the past two years, this additional capital provides us a tremendous opportunity to gain significant market share and expand our reach, given the readiness of the small business market.”
“Given the size of the small business market - more than 25.8 million small businesses in the U.S. alone - there is a huge opportunity for companies that can effectively reach this market,” said Bill Kaiser, partner, Greylock Partners. “Constant Contact has successfully reached and impacted thousands of small businesses and organizations and this is reflected in their rapid growth.”
Good luck to a real player in the online marketing space located in our back yard.
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Constant Contact is Constantly Contacting Me
