Optimizely, the Y Combinator-incubated startup that helps companies A/B test their websites, just announced that it has raised new funding from Battery Ventures, Google Ventures, and InterWest Partners.
The startup previously raised $1.2 million from angels including Ron Conway, Chris Sacca, and Ashton Kutcher, but this is its first venture round. Co-founder and CEO Dan Siroker (who was director of analytics for Barack Obama’s presidential campaign in 2008) says he isn’t disclosing the amount — which is the exact thing that a tech journalist doesn’t want to hear — because he doesn’t want to get into a competition over valuation and “vanity metrics.”
So what are the numbers that Siroker thinks really matter? Revenue, for one. Optimizely says its revenue has increased 1,266 percent year-over-year. Percentage increases can be a little deceptive for young companies (Optimizely launched in 2010) since they’re starting from zero, but that’s still a pretty good sign. The company also says it’s now being used by more than 2,000 enterprises, including Starbucks, Disney, and Salesforce.com. And Siroker sent me the chart below (via BuiltWith), which shows percentage adoption among websites in a few categories. Overall, he says Optimizely has pulled ahead of Google Website Optimizer and is now gunning for market leader Omniture, specifically its Test & Target product.
Siroker says the company’s next big launch will be a mobile product — he notes that smartphone screens have “limited real estate,” making it even more important to optimize the layout. More broadly, he says Optimizely sees a big opportunity in expanding beyond A/B testing altogether, into personalization.
Optimizely is a world-class website optimization platform, providing A/B and multivariate testing that is incredibly powerful and easy-to-use. Optimizely enables users with and without technical expertise to make dynamic changes to their websites, test the variations to live traffic, gather immediate results, and start achieving goals. Over 3,500 enterprises have adopted Optimizely, including Starbucks, Disney, Salesforce, eBay, Weather.com, Demand Media, and Crate & Barrel. A staggering 190,000+ experiments have been run on the Optimizely platform and the number is...
Battery Ventures is a venture capital firm with offices in Boston, Silicon Valley, Israel. They invest in technology driven companies.
Google Ventures is the financially motivated venture capital arm of Google Inc., founded in 2009. Google Ventures invests in startups in industries including consumer Internet, software, hardware, clean-tech, bio-tech, health care and others. They aim to invest about $100 million a year, with deal sizes ranging from seed to late-stage investments of tens of millions of dollars, depending on the stage of the opportunity and the company’s need for capital. Google Ventures currently invests in the U.S. and has offices in...
InterWest invests an average of about $7 - 15 million over the span of their involvement with each company in their portfolio. They invest in companies through the full range of venture investment stages, and investments may be staged over several rounds of financing. Although they generally begin their involvement in the early stages of a company’s development, they pursue attractive opportunities based on their individual merits rather than their investment stage.