Total amount raised
$111.5 Million
Latest funding date
12/01/2018
Location
Sprout Social has successfully raised funding over seven rounds, with the latest being a Series D round. The company is backed by notable investors, including Goldman Sachs and Future Fund.
Sprout Social offers a comprehensive suite of tools for social media management, including content planning, customer engagement, and performance 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, based in Chicago, Illinois, operates in the social media management industry. The company provides tools for social media engagement, publishing, and analytics, catering to businesses of all sizes. It is publicly traded under the ticker NASDAQ:SPT.
Founded by a team of innovators, Sprout Social has grown significantly, employing between 1001 and 5000 people. The platform integrates with various social media networks and offers features for planning and scheduling content, engaging with customers, and analyzing performance.
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 product development.
- Series Unknown
- Amount Raised: USD 1,000,000
- Date: November 2010
- Lead Investors: Lightbank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and enhance the platform's features.
- Series B
- Amount Raised: USD 9,998,796
- Date: February 2011
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the business and increase market penetration.
- Series B
- Amount Raised: USD 10,000,000
- Date: June 2014
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand customer base.
- Series B
- Amount Raised: USD 8,000,000
- Date: June 2014
- Lead Investors: New Enterprise Associates
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and product innovation.
- Series C
- Amount Raised: USD 42,000,000
- Date: February 2016
- Lead Investors: Goldman Sachs Merchant Banking Division
- Valuation at Round: USD 253,000,000
- Motivation Behind the Round: To accelerate growth and expand market reach.
- Series D
- Amount Raised: USD 40,500,000
- Date: December 2018
- Lead Investors: Future Fund
- Valuation at Round: USD 800,000,000
- Motivation Behind the Round: To expand internationally and enhance platform functionality.
Total Amount Raised: USD 111,498,796. Current Valuation: USD 800,000,000.
Key Investors
- Future Fund
- Details: Future Fund is a sovereign wealth fund from Australia. It led the Series D funding round for Sprout Social.
- Investment Focus Areas: Technology, Infrastructure, Healthcare
- Notable Investments: Not publicly disclosed
- Goldman Sachs Merchant Banking Division
- Details: The primary investing area of Goldman Sachs, a global investment banking, securities, and investment management firm. It participated in the Series C funding round for Sprout Social.
- Investment Focus Areas: Technology, Financial services, Healthcare
- Notable Investments: Uber, WeWork, Spotify
- New Enterprise Associates
- Details: New Enterprise Associates (NEA) is a global venture capital firm. It has been a key investor in multiple funding rounds for Sprout Social.
- Investment Focus Areas: Technology, Healthcare, Consumer products
- Notable Investments: Robinhood, Coursera, Duolingo
- Lightbank
- Details: Lightbank is a venture capital firm founded by the creators of Groupon. It led the Series A funding round for Sprout Social.
- Investment Focus Areas: Technology, Consumer internet, Mobile
- Notable Investments: Groupon, Udemy, Tempus
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 engagement and public relations. The company plans to expand its business internationally and enhance its platform's functionality, including developing tools like a "bot builder" for platforms such as Twitter. With a customer base that has grown from 16,000 to 25,000 in two years, the potential for further market penetration is substantial.
Future fundraising opportunities appear promising, with the possibility of additional investment rounds to support international expansion and platform enhancements. The competitive landscape also suggests potential acquisition interests from larger companies, positioning Sprout Social for continued growth. However, the company must navigate challenges such as competition from other social media management platforms and the need to continuously innovate to stay ahead.
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