Campaign Monitor recently announced that Insight Venture Partners invested US$250 million in the email marketing software company. This is Australia’s largest venture capital investment in technology ever made.
Is email marketing really that hot?
In 2004 during their final year of university, Campaign monitor founders David Greiner and Ben Richardson decided to develop their own email campaign tool: Campaign Monitor. During college they already had a small design agency, building websites and managing email campaigns for clients.
Ten years later the small design agency has grown to a company with 65 employees and more than 100,000 paying customers in 170 countries. The Sydney-based email marketing software company sends 1 billion emails a month and thus is a global player in SaaS-based email marketing solutions.
Campaign Monitor’s venture capital plans
Campaign Monitor has been profitable every quarter in their history. The company’s sales have been growing at double digits every year for the last decade, which allowed Greiner and Richardson to self-fund the business. “But there’s so much more to be done” as David Greiner writes in his announcement on the Campaign Monitor Blog.
That’s why they’ve partnered up with Insight Venture Partners. This global private equity and venture capital firm has invested in more than 200 growth-stage companies, including ExactTarget and Twitter. Greiner described Insight Venture Partners as “one of the most experienced tech investors in the world” and said Campaign Monitor has had a five-year relationship with the VC firm.
New features updates and sales
The co-founders of Campaign Monitor plan to use the fresh investment funds to expand their own marketing and to hire more sales people to court new customers. Campaign Monitor also is looking to open its first U.S. office. About 80% of the company’s customers are based in North America and Western Europe, but roughly 40 of the company’s 65 employees are currently in Australia.
The investment will also be used for product innovation. In the last months Campaign Monitor launched a new design for creating and sending email campaigns. Other examples of previous email tool development new features and updates are personalizing your subscription confirmation with more data collected during the signup process and a completely redesigned segment builder.
Email campaign tools are hot
In recent times Salesfusion acquired LoopFuse, Oracle bought Responsys and Eloqua and Exact Target was acquired by SalesForce, the investment of 250 million dollar in Campaign Monitor shows again that email campaign tools are hot and deemed a good investment at the moment. The marketing industry is more and more digital focused, which makes marketing-technology companies a hit for investors. Which email software company will be next?