Cloud-based marketing automation platform automation company Act-On Software, has secured $16m in new venture financing. Norwest Venture Partners (NVP) led the round, with existing investors Trinity Ventures, US Venture Partners and Voyager Capital also participating.
After growing at over 300 percent in 2011, the company expects to achieve a healthy triple digit growth rate again this year, it said, and the injection of capital will drive its product innovation and expansion into new markets.
Raghu Raghavan, founder and CEO of Act-On, said, “This new investment will enable us to further increase our business momentum by expanding operations globally to meet this demand, and also to accelerate product innovation. The next wave of online marketing goes beyond marketing automation, and we plan to address the management of the entire customer lifecycle with a single, easy to use and integrated marketing platform.”
According to research from Raab Associates, revenues for business-to-business marketing automation systems will grow 60 per cent this year to $525m. This projected growth is even higher than the 2011 growth rate of 50 per cent. In addition, the use of marketing automation in the much larger business-to-business SMB market is less than five per cent today.
“At Norwest Venture Partners, we have a 50 plus year history of partnering with entrepreneurs to help them build great companies,” said general partner Robert Abbott. “Our investment philosophy is focused on large, transformative market opportunities, and the companies that have the potential to become category leaders in those markets. Act-On’s vision, strategy, technology and market traction show all the signs of it becoming such a category leader in a rapidly expanding market.”
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