Total amount raised
$985.9 Million
Latest funding date
2/1/2021
Location
Automattic has successfully navigated 12 funding rounds, with its latest being a Series E round involving notable investors such as Alta Park Capital and BlackRock. The company is backed by 30 investors, including Avant Global LLC and BlackRock.
Automattic's diverse portfolio includes WordPress.com, WooCommerce, and other web solutions, contributing to its robust financial growth. Keep reading to explore the intricacies of Automattic's fundraising journey and the investors backing this innovative platform.
What Is Automattic?
Automattic, founded by Matt Mullenweg in 2005, is a technology company headquartered in San Francisco, California. The company is dedicated to making the web a better place through its diverse range of products and services, including WordPress.com, WooCommerce, and Jetpack.
With a workforce of 1001-5000 employees, Automattic has established itself as a significant player in the tech industry. The company is known for its contributions to open-source projects and its commitment to empowering users to create and share content online.
How Much Funding Has Automattic Raised?
- Series B
- Amount Raised: USD 29,500,000
- Date: January 2008
- Lead Investors: Polaris Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's early growth and expansion efforts.
- Series C
- Amount Raised: USD 160,000,000
- Date: May 2014
- Lead Investors: Insight Partners
- Valuation at Round: USD 1,160,000,000
- Motivation Behind the Round: To support the company's growth and expansion, including increasing the number of employees and market share.
- Series D
- Amount Raised: USD 300,000,000
- Date: September 2019
- Lead Investors: Salesforce Ventures
- Valuation at Round: USD 3,000,000,000
- Motivation Behind the Round: To accelerate the company's roadmap and support its vision to become the "operating system for the open web."
- Series E
- Amount Raised: USD 288,000,000
- Date: February 2021
- Lead Investors: Alta Park Capital, BlackRock
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue supporting the company's growth and expansion efforts.
- Secondary Market
- Amount Raised: USD 75,000,000
- Date: September 2013
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Secondary Market
- Amount Raised: USD 51,700,000
- Date: May 2013
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
Total Amount Raised: USD 904,200,000. Current Valuation: USD 3,000,000,000.
Key Investors
- Salesforce Ventures
- Details: Salesforce Ventures is the investment arm of Salesforce, a leading customer relationship management (CRM) platform. They focus on investing in enterprise cloud companies that extend the capabilities of the Salesforce platform.
- Investment Focus Areas: Enterprise cloud companies.
- Notable Investments: Zoom, Dropbox, DocuSign.
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm that invests in growth-stage technology, software, and internet businesses. They have a strong track record of supporting companies through their growth phases.
- Investment Focus Areas: Growth-stage software, internet, and data services companies.
- Notable Investments: Twitter, Shopify, Wix.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on public and private companies in the global internet, software, consumer, and financial technology industries. They are known for their aggressive investment strategies.
- Investment Focus Areas: Global internet, software, consumer, and financial technology industries.
- Notable Investments: Facebook, LinkedIn, Spotify.
- True Ventures
- Details: True Ventures is a venture capital firm that invests in early-stage technology startups. They focus on providing the necessary support and resources to help startups grow and succeed.
- Investment Focus Areas: Early-stage technology startups.
- Notable Investments: Fitbit, Peloton, Blue Bottle Coffee.
- BlackRock
- Details: BlackRock is a global investment management corporation and one of the world's largest asset managers. They provide a range of investment and technology services to institutional and retail clients worldwide.
- Investment Focus Areas: Not specified.
- Notable Investments: Participated in Series E funding round for Automattic.
What's Next for Automattic?
Automattic stands at the cusp of significant growth opportunities, driven by its vision to become the "operating system for the open web." With WordPress already powering a substantial portion of the internet, the potential for further expansion is immense. The recent $300 million investment from Salesforce Ventures underscores the confidence in Automattic's ability to scale its offerings, particularly in e-commerce through WooCommerce and CRM integrations with Salesforce.
Future fundraising efforts are likely to be bolstered by these opportunities, as investors see the potential for Automattic to capture an even larger market share. However, the company will need to navigate challenges such as integrating new acquisitions like Tumblr and maintaining its open-source ethos while scaling. The rise of closed platforms and the complexities of managing a globally distributed workforce also present hurdles that Automattic must overcome to sustain its growth trajectory.
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