WordPress.com Parent Automattic Raises $160 Million.
WordPress developer Automattic has recently announced a raised amount of $160 million in funding round. Founder and WordPress creator Matt Mullenweg had unveiled this information in a blog post earlier in the day. Including that the Series C round was led by Deven Parekh of Insight Ventures. It also included previous investors and new ones as well.
One of the most amazing thing about this recent news about the, vastly popular blogging service and platform, is that it happens to be the very first outside financial funding since its $29,5 million Series B round back in 2008, and $18.5 million of that was immediately spread out to early shareholders of the company. This was followed by its $1.1 million Series A round during 2005. Which means that previously before, the company was effectively had net funding that totaled around $12 million since its launching nine years ago.
Though Automattic is know way better for its hosted WordPress.com blogging service and software available through WordPress.org, it also has a variety of products under its portfolio, these include Akismet, Gravatar, Polldaddy. and Simplenote. Mullenweg took over as Autmattic’s CEo during January, replacing Toni Schneider who had been leading the forces for more then eight years.
“There was interest significantly above what we raised, but we focused in on finding the best partners and scaled it back to be the right amount of capital at the right valuation,” explains Mullenweg. “Deven and Insight share our long term vision and are focused on building an enduring business, one that will thrive for decades to come.”
Within this recent round of funding Automattic shall use it to scale massively, although, interestingly enough this was not a move Mullenweg was anticipating twelve months ago.
“It was also only a year ago I said, ‘Automattic is healthy, generating cash, and already growing as fast as it can, so there’s no need for the company to raise money directly — we’re not capital constrained’,” he wrote. “I was wrong, but I didn’t realize it until I took on the CEO role in January.”
In term of what this recent capital shall be utilized for, Mullenwag has pointed out that the competitive market for WordPress is in its own league.
“Especially on the proprietary and closed side,” he says. “I believe WordPress will win, first and foremost, because of its community — the hundreds of core developers and large commercial companies, the tens of thousands of plugin and theme developers, and the millions of people who build beautiful things with WordPress every day.”