Anyone else amazed about the announcement yesterday that Infusionsoft landed a huge ($54 million) capital investment? If you’re an Infusionsoft employee, share holder, customer, partner, or prospect… or involved in the marketing automation space in any way, you should be off-the-hook excited about the news. Here’s my take on why…
1) Infusionsoft didn’t need the money. They hit $39M in revenue for 2012… most of which is recurring revenue. Financially, they are healthy. Due to the recurring revenue model, they could stop all client acquisition and still do close to $29M for 2013 without much work at all. However, Infusionsoft is out to serve true small businesses with an all-in-one sales and marketing system. That’s a huge initiative requiring a LOT of capital. The investment shows how dedicated Infusionsoft is small businesses and they truly believe in their mission. They are making it possible for more small businesses to succeed, which is especially important given the current economic, and now tax, climate.
2) An already amazing product (yes, Sixth Division uses Infusionsoft for EVERYTHING and we couldn’t live without it) is only going to get better. I would expect a significant chunk of the money will go towards R&D on their core product as well as investment in ancillary products such as content, integrations, add-ons, etc.
3) Infusionsoft could have raised the money from a number of top Silicon Valley VCs. Instead, they partnered with Goldman Sachs, a top investment banking firm. This is a BIG deal and a huge signal on many levels. Massive validation for Infusionsoft and the entire sales & marketing automation category. And, the likelihood of an IPO for Infusionsoft has taken a massive leap forward. It’s the logical next step on their financing path to achieving their mission.
Congratulations Infusionsoft! We’re proud to be a partner and are lovin’ the ride!!