How ActiveCampaign Works and Early Success
Tech startup ActiveCampaign has created one of the largest automated customer experience products available on the market today. Through machine learning and a constantly growing collection of personalized responses, the marketing company has quickly become one of the largest names at the forefront of the growing business type.
Outside of automated customer service, ActiveCampaign offers a variety of other solutions as well, including email marketing, automated marketing, and sales automation. Each of these different solutions has helped the marketing startup offer business owners a complete suite of services to help boost sales and reduce the operational costs it takes to run a company.
Not only does ActiveCampaign help business owners lower overall costs through marketing, but its collection of automated solutions have been proven to be the most effective product and user experience through customer satisfaction ratings and other ranking tools on various websites.
ActiveCampaign has in turn seen incredible success because of these products. The startup now generates more than $165 million in annual recurring revenue largely due to the client base of 145,000 different companies in 170 different countries. The startup has also been incredibly popular in the modern tech world as well with ActiveCampaign boasting 850 technology partners, including major names such as Facebook, Google, Shopify, Microsoft, and Zendesk.
ActiveCampaign Funding and Future Plans
In ActiveCampaign’s Series C funding round, the marketing company raised $240 million. This brings the total funding for the company to $360 million and raises the public valuation of the startup to over $3 billion. The new valuation makes the marketing company a verified unicorn. The latest funding round was led by Tiger Global with participation from Dragoneer, Susquehanna Growth Equity, and Silversmith Capital Partners.
The new funding will be used to further expand the business through expanding the workforce by over 300 new employees, improving the current product, and fighting for a larger market share of the customer experience automation industry. The marketing startup also plans to take its business in a more global direction, putting more focus on new regions outside of the more established presence in North America.
When commenting on the latest funding round, founder and CEO of the marketing company Jason VandeBoom said, “To have reached over 850 team members and over 145,000 customers in five years is incredible. We have used our own platform to achieve this growth, proving CXA is game-changing. I'm excited to welcome Tiger Global and Dragoneer as investors, and want to thank SGE and Silversmith for their ongoing investment and support, as this funding will allow us to further lead the CXA category, critical for companies to reach their growth potential.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.