Total amount raised
$985.9 Millions
Latest funding date
2/1/2021
Location
Automattic has successfully raised significant capital through multiple funding rounds, with the latest being a Series E. The company is backed by a diverse group of 30 investors, including notable names like Avant Global and BlackRock.
Continue reading to delve into the details of Automattic's funding journey and discover the key investors supporting this influential tech company.
What Is Automattic?
Founded in 2005 by Matt Mullenweg, Automattic is a technology company based in San Francisco, California. The company is dedicated to making the web a better place through a variety of web-based solutions and services.
Automattic's product suite includes WordPress.com for website creation, WooCommerce for e-commerce, Jetpack for site performance and security, and other tools aimed at enhancing web functionality. They also own popular platforms like Tumblr and Pocket Casts.
With a workforce of 1001-5000 employees, Automattic continues to innovate and expand its offerings, contributing significantly to both commercial and open-source projects.
How Much Funding Has Automattic Raised?
- Series B
- Amount Raised: $29.5M
- Date: January 2008
- Lead Investors: Polaris Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's product offerings and market reach.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: May 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing product development and innovation.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: March 2011
- Lead Investors: Akkadian Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Secondary Market
- Amount Raised: $51.7M
- Date: May 2013
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Secondary Market
- Amount Raised: $75M
- Date: September 2013
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Series C
- Amount Raised: $160M
- Date: May 2014
- Lead Investors: Insight Partners
- Valuation at Round: $1.16 billion
- Motivation Behind the Round: To scale the company and support the growth of WordPress.
- Series D
- Amount Raised: $300M
- Date: September 2019
- Lead Investors: Salesforce Ventures
- Valuation at Round: $3 billion
- Motivation Behind the Round: To accelerate the company's roadmap and explore partnerships with Salesforce.
- Venture Round
- Amount Raised: $80.6M
- Date: December 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing product development and innovation.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: May 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Series E
- Amount Raised: $288M
- Date: February 2021
- Lead Investors: Alta Park Capital, BlackRock
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the company's product offerings and market reach.
Total Amount Raised: $984.8M. Current Valuation: $3 billion.
Key Investors
- Salesforce Ventures
- Details: Salesforce Ventures is the investment arm of Salesforce, focusing on enterprise cloud companies. They aim to support the next generation of enterprise technology.
- Investment Focus Areas: Enterprise cloud companies, CRM, SaaS.
- Notable Investments: Dropbox, DocuSign, Twilio.
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm. They focus on growth-stage software, internet, and data services companies.
- Investment Focus Areas: Software, internet, data services.
- Notable Investments: Shopify, Twitter, Qualtrics.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that invests in both private and public companies. They focus on the global internet, software, consumer, and financial technology industries.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- True Ventures
- Details: True Ventures is a venture capital firm that focuses on early-stage technology startups. They aim to support innovative and transformative companies.
- Investment Focus Areas: Technology startups, consumer products, health tech.
- Notable Investments: Fitbit, Peloton, Ring.
- BlackRock
- Details: BlackRock is a global investment management corporation. They specialize in asset management, including equities, fixed income, and alternative investments.
- Investment Focus Areas: Equities, fixed income, alternative investments.
- Notable Investments: Not publicly disclosed.
What's Next for Automattic?
Automattic stands at the cusp of significant growth opportunities. With WordPress already powering a third of the web, the potential to expand its market share is immense. The integration with Salesforce's CRM systems and the expansion of WooCommerce's e-commerce capabilities present substantial avenues for growth. Additionally, the acquisition of platforms like Tumblr and ZBS CRM further diversifies their portfolio, enhancing their service offerings.
Future fundraising seems promising, given the successful Series D round and the company's robust growth trajectory. Automattic's ability to attract investments from major players like Salesforce Ventures and Insight Partners indicates strong investor confidence. This financial backing could pave the way for more strategic acquisitions and partnerships, further solidifying their market position.
However, challenges remain. Integrating new acquisitions and maintaining a balance between their open-source philosophy and commercial success will be crucial. Competition from other platforms and managing a globally distributed workforce are additional hurdles. Yet, with a clear vision and strong financial support, Automattic is well-positioned to navigate these challenges and continue its upward trajectory.
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