June 30, 2006
- Waltham, MA
Constant Contact® (www.constantcontact.com), the leading email marketing service for small businesses, associations, and nonprofits, today announced that it is closing a $15 million round of venture capital- led financing. This round of funding is being led by new investor, Greylock Partners, who committed $10 million. An additional $5 million is being provided by the Company's existing investors, including Commonwealth Capital Ventures, Hudson Ventures, Longworth Venture Partners, and Morgan Stanley Venture Partners. Constant Contact will use the proceeds to fund its current and future growth opportunities.
Launched in 1998, Constant Contact helps small businesses and organizations build lasting customer relationships through professional email communications. Using the web-based ASP solution, Constant Contact's current 65,000 customers - from retail, restaurants, and spas to business services, consultants, nonprofits, and associations - can create and send professional email newsletters, announcements, promotions, and more to build customer loyalty and generate repeat business.
"Our phenomenal growth in the past few years has shown the important role email marketing plays in the growth and success of thousands of small businesses and organizations across the U.S.," said Gail Goodman, CEO of Constant Contact. "While we have been operating cash flow positive for the past two years, this additional capital provides us a tremendous opportunity to gain significant market share and expand our reach, given the readiness of the small business market."
"Given the size of the small business market - more than 25.8 million small businesses in the U.S. alone - there is a huge opportunity for companies that can effectively reach this market," said Bill Kaiser, partner, Greylock Partners. "Constant Contact has successfully reached and impacted thousands of small businesses and organizations and this is reflected in their rapid growth."
With more than 65,000 customers today, Constant Contact has achieved significant growth in recent years. In 2005, Constant Contact doubled its customer base from 25,000 to 50,000 and saw an 84 percent increase in revenue. In addition, the Company experienced a two-year revenue growth of 231 percent between 2003 and 2005. To support this current and future growth, Constant Contact plans to hire an additional 50 people in 2006, bringing the total workforce to more than 200.