Marketo Secures $50 Million in Venture Financing Led by Battery Ventures to Continue Record Global Growth Infusion of Private Capital to Expand Leadership in Revenue Performance Management Solutions to Fuel Fast-Growth Companies
SAN MATEO, Calif., Nov. 16, 2011 /PRNewswire/ -- Marketo, the fastest-growing provider of Revenue Performance Management (RPM) technology, today announced it has secured $50 million in new venture financing. Battery Ventures led the round, with existing investors Institutional Venture Partners, InterWest Partners, Mayfield Fund and Storm Ventures also participating. In just five years since its founding, Marketo has delivered a proven business solution for any company looking to accelerate predictable revenue growth. Marketo will use the infusion of new capital to further its aggressive growth strategy.
"Because of our industry-leading growth in revenues and market share, Marketo had many options for capital. To stay focused on growth, our best choice was to secure private equity from a top-shelf firm, and I am very pleased to welcome Battery Ventures as an investor," said Phil Fernandez, co-founder and CEO of Marketo. "This new investment gives us a war chest in excess of $70 million. We plan to use these funds aggressively to expand our award-winning product suite, further extend our global reach and look beyond our four walls to complement our own innovation engine. This investment validates our vision – and success – in building a platform to dramatically speed the way any company can grow revenue."
From Fortune 500 to small and mid-sized companies, Marketo's RPM technology drives businesses beyond traditional marketing automation and lead nurturing to optimize interactions with buyers across the entire revenue cycle and accelerate predictable revenue growth. The result is an incredibly more efficient way of doing business through a larger pipeline of better sales leads.
The entirety of the new $50 million investment is primary capital into the company. In total, Marketo has raised $107 million since it was founded in 2006. Also with this new round of financing, Neeraj Agrawal, Battery Ventures general partner, joins Marketo's board of directors.
"From the moment we first engaged with Phil and the team at Marketo it became clear that the company was powering a revenue revolution," said Agrawal. "We are bullish on the company's ability to execute, and believe they are destined to be a true winner."
"When we first invested in Marketo a year ago, they made an aggressive commitment to double revenue, and they've delivered," said Norm Fogelsong, general partner at Institutional Venture Partners, whose other investments include leaders like Kayak, Twitter and Zynga. "Now we are doubling down on the future of this remarkable company and its ability to dramatically increase revenues for its customers."
2011 is a benchmark year for Marketo. So far, the company has more than doubled its revenue, opened its EMEA headquarters in Dublin and launched Spark by Marketo™, an entirely new product solution specifically designed for the SMB sector. The company also released a study showing its vision to make a $2.5 trillion impact on its customer base over the next three years.
Fernandez adds, "When we started the company, our vision was to be the very best at delivering products and thought leadership to help companies grow revenue faster than ever before, and the market response has been incredible. Based on publicly available data, we now know we are, in absolute terms, adding more customers and more revenues this year than anyone in the RPM market."
Marketo is the global leader in Revenue Performance Management. Marketo's powerful yet easy-to-use marketing automation and sales effectiveness solutions transform how marketing and sales teams of all sizes work — and work together — to drive dramatically increased revenue performance and fuel business growth. The company's proven technology, comprehensive services, and expert guidance are helping corporations around the world to turn marketing from a cost center to a business-building revenue driver.
As of October 2011, more than 1,350 enterprise and mid-market clients globally have adopted Marketo solutions and in October, Marketo introduced Spark by Marketo™, a new brand of marketing automation tailored specifically for small businesses – the fastest-growing and largest segment of today's economy.
Marketo was named the fastest-growing private company of 2011 by the Silicon Valley Business Journal, and has also been recognized by CRM Magazine as the "2011 CRM Market Leaders Awards Winner for Marketing Solutions," the 2010 CODiE award for "Best Marketing Solution," the "Best Sales and Marketing 2.0 Solution" from SellingPower and the "Best Marketing Automation Application" by Salesforce customers on the AppExchange. For more information, visit www.marketo.com, or subscribe to Marketo's award-winning blogs at blog.marketo.com.
About Battery Ventures
Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company's life, from seed, start-up and expansion financing, to growth equity and buyouts.
Battery has supported many breakthrough companies around the world, including: Akamai Technologies (NASDAQ: AKAM), BladeLogic (acquired by BMC Software), Groupon (NASDAQ: GRPN), ITA (acquired by Google), Netezza (acquired by IBM), Omniture (acquired by Adobe), ProfitLogic (acquired by Oracle), and Realpage (NASDAQ: RP). Its current portfolio includes firms such as: Angie's List, Bazaarvoice, BlueStem Brands, BrightEdge, Brightree, Exact Target and Guidewire.
From offices in Boston, Silicon Valley and Israel, Battery currently manages $4B in committed capital. For more information, go to www.battery.com or follow Battery on Twitter@BatteryVentures.