Infusionsoft has raised $54 million from Goldman Sachs for its small business sales and marketing automation platform. The investment pushes Infusionsoft’s total venture funding to $71 million. The company raised $9 million in 2007 from Mohr Davidow Ventures and another $8 million from vSpring Capital in 2008, with Mohr Davidow participating.
Infusionsoft will use the capital to build out the business and potentially do an IPO if it makes sense in the next few years.
“This is a decision by the board saying let’s go for it,” Founder and CEO Clate Mask told me last week. “We are building a big, independent company to be around for decades to come. We want to be the Inuit for the sales and marketing business of a company.”
The Infusionsoft SaaS platform caters to small businesses that earn more than $100,000 in sales and have fewer than 25 employees. It helps these companies automate the often disparate sales and marketing platforms that they use to make it one single process. For instance, it automates marketing tasks, such as using SMS to get leads, and then sends emails to those leads on a scheduled basis. Often, small businesses may use Salesforce.com and an email marketing service, such as Constant Contact. Infusionsoft replaces those platforms to become a company’s system of record.
Infusionsoft competes with marketing automation companies, such as Marketo and Eloqua, which Oracle acquired last month.
Infusionsoft is an all-in-one sales and marketing software for small businesses. They provide CRM, email marketing, marketing automation and e-commerce for businesses with fewer than 25 employees. Infusionsoft benefits small businesses by helping them generate leads, nurture customers and save time. They currently serve over 12,000 small businesses representing 44,000 users across 70 countries. Their service starts at $199 monthly plus a one-time coaching and consulting fee. They don’t require contracts and provide free customer support.
For more than 30 years, the Mohr Davidow team has invested in early stage startups and worked closely with exceptional entrepreneurs to create venture returns by developing and bringing to market new, technology-based ideas, products and services. The firm invests in companies that transform industries whether through better infrastructure for our rapidly evolving data-intensive digital world, more efficient power for our planet, or better, more personalized medicine. Category-leading companies funded by Mohr Davidow include: Agile (ORCL); AudienceScience; Brocade (BRDC);...
vSpring is a traditional early-stage venture capital firm with over $350 million of committed capital under management. Specifically, they target information technology and life sciences companies headquartered in the Intermountain West region. They look for companies with the potential to transform their markets and create lasting value. Their primary areas of focus include enterprise software, networking and communications, security software, Internet, mobile computing, drug discovery, drug delivery, diagnostics, and medical devices, all markets where the firm has deep experience. Their...