Constant Contact Announces $15 Million in Venture Capital Funding

Greylock Partners leads this round of funding, and the funds are to be used to fund growth opportunities

Constant Contact a leading email marketing service for small businesses, nonprofit organizations and associations, recently announced that it has closed a $15 million round of venture capital financing.

New investor, Greylock Partners, who committed $10 million, is leading this round of funding. The Company’s existing investors, including Commonwealth Capital Ventures, Hudson Ventures, Longworth Venture Partners, and Morgan Stanley Venture Partners, are providing an additional $5 million. Constant Contact will use the proceeds to fund its current and future growth opportunities.

Launched in 1998, Constant Contact helps small businesses and organizations build lasting customer relationships through professional email communications. Using the web-based ASP solution, Constant Contact’s current 65,000 customers can create and send professional email newsletters, announcements, promotions, and more to build customer loyalty and generate recurring sales.

“Our phenomenal growth in the past few years has shown the important role email marketing plays in the growth and success of thousands of small businesses and organizations across the U.S.,” said Gail Goodman, CEO of Constant Contact. “While we have been operating cash flow positive for the past two years, this additional capital provides us a tremendous opportunity to gain significant market share and expand our reach, given the readiness of the small business market.”

“Given the size of the small business market – more than 25.8 million small businesses in the U.S. alone – there is a huge opportunity for companies that can effectively reach this market,” said Bill Kaiser, partner, Greylock Partners. “Constant Contact has successfully reached and impacted thousands of small businesses and organizations and this is reflected in their rapid growth.”