Yext has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform offers a comprehensive digital presence solution for multi-location brands.
Keep reading to explore the intricacies of Yext's fundraising journey and the investors backing this innovative platform.
What Is Yext?
Yext, founded in 2006, is headquartered in New York City. The company was established by Howard Lerman, Brian Distelburger, and Brent Metz.
Yext provides a digital presence platform designed to help multi-location brands manage and optimize their online information. Their services include intelligent search tools, reputation management, and AI-powered content organization.
With a workforce of over 1,000 employees, Yext continues to innovate in the digital presence space, ensuring brands can deliver consistent and engaging experiences across all digital channels.
How Much Funding Has Yext Raised?
- Series A Round
- Amount Raised: $3.5 million
- Date: June 2008
- Lead Investors: Sutter Hill Ventures
- Motivation Behind the Round: Initial funding to support the development and growth of Yext's local advertising business.
- Series B Round
- Amount Raised: $25 million
- Date: October 2009
- Lead Investors: Institutional Venture Partners (IVP)
- Motivation Behind the Round: To aggressively expand into more local categories, hire salespeople, and integrate Yext numbers into mobile apps.
- Series D Round
- Amount Raised: $10 million
- Date: July 2011
- Lead Investors: Michael Walrath through WGI Group
- Motivation Behind the Round: To develop and expand the PowerListings product, integrate more local sites and apps, and create a mobile app for local businesses to manage their listings.
Total Amount Raised: $38.5 million. Current Valuation: Higher than $25 million (~estimated).
Key Investors
- Michael Walrath (WGI Group)
- Details: Michael Walrath is the founder of Right Media, which was sold to Yahoo for $850 million. He became chairman of Yext in March.
- Investment Focus Areas: Technology, media
- Notable Investments: Right Media
- Institutional Venture Partners (IVP)
- Details: IVP is a venture capital firm that led Yext's $25 million Series B funding round. Dennis Phelps, a partner at IVP, joined Yext's board.
- Investment Focus Areas: Later-stage technology, media
- Notable Investments: Twitter
- Ron Conway's SV Angel
- Details: SV Angel is an angel investment firm led by Ron Conway, known for investing in early-stage startups. Conway is a prominent figure in Silicon Valley.
- Investment Focus Areas: Early-stage technology startups
- Notable Investments: Not specified
- Sutter Hill Ventures
- Details: Sutter Hill Ventures is a venture capital firm that participated in Yext's Series A and B funding rounds. They focus on early-stage technology companies.
- Investment Focus Areas: Early-stage technology, healthcare
- Notable Investments: Not specified
What's Next for Yext?
Yext stands at the cusp of significant growth opportunities, driven by the expansion of its PowerListings product. With the potential to serve 20 million businesses in the U.S., the company aims to integrate with more local sites and apps, and develop a mobile app for easier listing management. This vast market presents a substantial opportunity for Yext to scale its operations and enhance its service offerings.
Future fundraising efforts could be bolstered by the demonstrated success of PowerListings, attracting further investment to support continued expansion. However, Yext may face challenges such as competition from other local listing management services and the need to maintain accurate listings across multiple platforms. Navigating these hurdles will be crucial for sustaining growth and capitalizing on the burgeoning digital presence market.
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