Total amount raised
$111.5 Millions
Latest funding date
12/01/2018
Location
Sprout Social has successfully raised funding through multiple rounds, with its latest being a Series D round. The platform offers comprehensive social media management solutions, including engagement, publishing, and analytics.
Keep reading to explore the intricacies of Sprout Social's fundraising journey and the investors backing this innovative platform.
What Is Sprout Social?
Sprout Social, founded in 2010, is headquartered in Chicago, Illinois. The company was established by Aaron Rankin, Gil Lara, and Justyn Howard. It employs between 1001 and 5000 people.
Sprout Social offers a comprehensive platform for managing social media engagement, publishing, and analytics. Their solutions are designed to help businesses streamline their social media efforts and drive impactful results.
With a focus on enhancing communication between businesses and their customers, Sprout Social aims to build lasting relationships through its innovative platform.
How Much Funding Has Sprout Social Raised?
- Series A
- Amount Raised: Not publicly disclosed
- Date: May 2010
- Lead Investors: Lightbank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the company's initial operations and develop its social media management platform.
- Venture Round
- Amount Raised: $1M
- Date: Nov 2010
- Lead Investors: Lightbank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series B
- Amount Raised: $10M
- Date: Feb 2011
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and increase market penetration.
- Series B
- Amount Raised: $10M
- Date: Jun 2014
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the platform's capabilities and grow the customer base.
- Series B
- Amount Raised: $8M
- Date: Jun 2014
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and product enhancements.
- Series C
- Amount Raised: $42M
- Date: Feb 2016
- Lead Investors: Goldman Sachs Merchant Banking Division
- Valuation at Round: $253M
- Motivation Behind the Round: To expand internationally and enhance platform features.
- Series D
- Amount Raised: $40.5M
- Date: Dec 2018
- Lead Investors: Future Fund
- Valuation at Round: $800M
- Motivation Behind the Round: To double down on social tools for businesses and expand globally.
Total Amount Raised: $111.5M
Current Valuation: $800M
Key Investors
- Future Fund
- Details: Future Fund is an Australian sovereign wealth fund. It manages a diversified portfolio to benefit future generations of Australians.
- Investment Focus Areas: Equities, private equity, infrastructure, real estate
- Notable Investments: Not publicly disclosed
- Goldman Sachs Merchant Banking Division
- Details: The Merchant Banking Division of Goldman Sachs is the primary center for the firm’s long-term principal investing activity. It focuses on private equity and other long-term investments.
- Investment Focus Areas: Private equity, infrastructure, real estate
- Notable Investments: Not publicly disclosed
- New Enterprise Associates (NEA)
- Details: NEA is a global venture capital firm that invests in technology and healthcare companies. It has a history of successful investments in various sectors.
- Investment Focus Areas: Technology, healthcare
- Notable Investments: Salesforce, Workday, Coursera
- Lightbank
- Details: Lightbank is a venture capital firm based in Chicago. It focuses on early-stage technology companies and has been instrumental in the growth of several startups.
- Investment Focus Areas: Early-stage technology companies
- Notable Investments: Not publicly disclosed
What's Next for Sprout Social?
Sprout Social stands at the cusp of significant growth opportunities, driven by the increasing reliance of businesses on social media for customer interaction and public relations. The company is poised to expand its international footprint and enhance its platform's functionality, catering to a growing customer base that has surged from 16,000 to 25,000 in just two years. This expansion is bolstered by the broader industry trend of businesses seeking comprehensive social media management tools.
Future fundraising opportunities appear promising, given the company's recent successful Series D round and substantial valuation increase. These funds could be pivotal for further expansion and innovation, ensuring Sprout Social remains competitive in a rapidly evolving market. However, the company may face challenges such as competition from other social media management tools and the potential for social media platforms to develop their own solutions, which could diminish the need for third-party services.
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