Klaviyo has successfully raised $678.5 million over five funding rounds, with its latest round being a Series D in April 2021. The company has garnered significant investment from top investors, reflecting strong confidence in its customer data and marketing automation platform.
Keep reading to explore the intricacies of Klaviyo's fundraising journey and the investors backing this innovative platform.
What Is Klaviyo?
Klaviyo, founded by Ed Hallen and Andrew Bialecki, is a leading customer data and marketing automation platform based in Boston. The company focuses on helping online businesses accelerate revenue and customer connections through highly-targeted communications.
With a robust platform that integrates email, SMS, and more, Klaviyo empowers businesses to own their consumer data and use it effectively. This approach allows companies to foster direct relationships with their customers without relying on big-tech ad platforms.
Employing between 1001-5000 people, Klaviyo serves over 275,000 innovative companies, including Unilever, Custom Ink, and Living Proof. The company's mission is to make it easy for businesses to store, access, analyze, and use transactional and behavioral data.
How Much Funding Has Klaviyo Raised?
- Series D Funding Round:
- Amount Raised: $320 million
- Date: May 18, 2021
- Lead Investors: Sands Capital
- Valuation at Round: $9.15 billion (pre-money)
- Motivation Behind the Round: To further growth through product development, increased marketing and sales, hiring, and expansion into new international regions and verticals.
- Series C Funding Round:
- Amount Raised: $200 million
- Date: November 17, 2020
- Lead Investors: Accel, with help from Summit Partners
- Valuation at Round: $4.15 billion
- Motivation Behind the Round: To accelerate product development and enter new markets, providing customers with tools to know their own customers on an increasingly granular level and deliver more meaningful interactions.
- Series B Funding Round:
- Amount Raised: $150 million
- Date: April 8, 2019
- Lead Investors: Summit Partners
- Motivation Behind the Round: To hire hundreds of engineers, build the corporate development team, and expand in other areas, predominantly in the company’s Boston headquarters.
- Seed Funding Round:
- Amount Raised: $1.5 million
- Date: August 26, 2015
- Lead Investors: Accomplice, David Cancel, Elias Torres, TJ Mahoney
- Motivation Behind the Round: To build on an already impressive list of third-party one-click data integrations and expand sales and marketing efforts.
Total Amount Raised: $671.5 million. Current Valuation: $9.15 billion.
Key Investors
- Sands Capital
- Details: Sands Capital is a global investment firm that focuses on high-growth companies. They led Klaviyo's Series D funding round.
- Investment Focus Areas: Technology, healthcare, consumer sectors
- Notable Investments: Amazon, Netflix, Tesla
- Accel
- Details: Accel is a leading global venture capital firm that invests in companies from their early stages through growth. They led Klaviyo's Series C funding round.
- Investment Focus Areas: Technology, internet, software
- Notable Investments: Facebook, Dropbox, Slack
- Summit Partners
- Details: Summit Partners is a global alternative investment firm managing over $19 billion in capital. They have been involved in multiple funding rounds for Klaviyo.
- Investment Focus Areas: Technology, healthcare, life sciences
- Notable Investments: Uber, Avast, Infor
- Counterpoint Global (Morgan Stanley)
- Details: Counterpoint Global is a division of Morgan Stanley that focuses on long-term investments in high-growth companies. They participated in Klaviyo's Series D funding round.
- Investment Focus Areas: Technology, consumer, healthcare
- Notable Investments: Shopify, Square, Zoom
- Whale Rock Capital Management
- Details: Whale Rock Capital Management is an investment firm that focuses on technology and consumer sectors. They participated in Klaviyo's Series D funding round.
- Investment Focus Areas: Technology, consumer sectors
- Notable Investments: Spotify, Snap, Uber
What's Next for Klaviyo?
As Klaviyo looks to the future, the opportunities are vast. With a recent $320 million Series D funding round, the company is poised to enhance its product development, expand marketing and sales efforts, and hire new talent. The growing demand for data analytics and marketing automation platforms presents a significant market opportunity, especially as businesses seek to own their customer relationships and reduce reliance on third-party data.
Future fundraising opportunities seem likely given Klaviyo's rapid growth and high valuation. The company may pursue additional funding rounds to support its expansion into new international regions and verticals. However, challenges such as competition from other platforms, maintaining seamless integration with various e-commerce systems, and scaling operations effectively will need to be navigated carefully.
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