ActiveCampaign raises $240m at a $3bn valuation

ActiveCampaign, which has built what it describes as a “customer experience automation” platform has closed a $240 million round of funding which means the Series C values the Chicago startup at over $3 billion.

The round is being led by a new investor, Tiger Global, with participation from another new backer Dragoneer, along with two companies who previously invested, Susquehanna Growth Equity and Silversmith Capital Partners. The round brings the company’s total raised to date to $360 million.

The pandemic has resulted in a surge of interest among businesses to do more online than ever before, this could be because many people were working from home and spending more time on the internet. That has led to ActiveCampaign growing to a customer base of 145,000 customers, up from 90,000 16 months ago.

“Today, with over 145,000 customers, we want to accelerate CXA even faster. That’s why we’ve raised a $240M Series C round of funding — to help more businesses create great experiences for their customers.” says founder and CEO of ActiveCampaign, Jason VandeBoom. 

What is ActiveCampaign?

ActiveCampaign describes itself as a ‘category-defining Customer Experience Automation Platform that helps over 145,000 businesses in 170+ countries meaningfully connect and engage with their customers.’ They create optimised customer experiences by automating behind-the-scenes marketing, sales, and support processes. ‘Businesses of all sizes have access to hundreds of pre-built automations that combine email marketing, marketing automation, CRM, and machine learning for powerful cross-channel orchestration, segmentation, and personalization.’ 

Company growth 

ActiveCampaign says it achieved record usage in 2020, including 4 billion weekly automated experiences, 150 million monthly automated campaigns, and 2 million daily predictions.

The company also launched functionality like pages and web personalisation, plus a predictive feature that helps to navigate over 500 automation recipes. The platform grew to over 850 technology partners, which is up from 200 as of January 2020. ActiveCampaign has also announced plans to grow to over 1,000 employees by the end of 2021, after adding 300 in 2020.

“The need for enhanced customer experiences is fueling growth at ActiveCampaign and the growth of businesses around the globe. Companies are becoming increasingly frustrated with legacy marketing automation tools and customer relationship management platforms that only solve for one part of the customer experience,” Mr VandeBoom told VentureBeat.