Chicago Tech Startup ActiveCampaign Raises $240 Million in Series C Funding

Image Source: ActiveCampaign

Digital marketing companies help companies reach their goals through online platforms. During the pandemic, when almost every establishment transitioned online, marketing played an even vital role in ensuring a balanced flow between demand and supply. ActiveCampaign, one of the most trusted marketing tech companies based in Chicago, Illinois, recently made a buzz in the industry by raising $240 million in Series C funding, skyrocketing its market value to $3 billion.

The funding was led by Tiger Global and Dragoneer. ActiveCampaign was founded in 2003, but it did not take off in the industry until it raised outside funding five years ago, which has expanded the company from having 16 employees to more than 850 today. With its current growth rate, ActiveCampaign is also eyeing to hire more workers this year, providing more opportunities for professionals in the tech field. 

ActiveCampaign CEO Jason VandeBoom shared that the company will use the funding to further refine a product currently used by clients in over 170 countries worldwide. The funding will also help jumpstart the company’s effort to launch and expand to new markets. “It’s about how do we reach more customers? It’s a massive undertaking and opportunity. With the capital, we can invest where it makes sense,” said VandeBoom.

“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,” the CEO said. 

ActiveCampaign makes user-friendly, efficient, and top-of-the-line software to help small businesses automate and customize their marketing and various online interactions with customers. The startup unicorn helps its clients send and design email newsletters and automate marketing channels. As of date, the company serves over 145,000 individuals, small business owners, organizations, and companies reach their marketing goals. Museum of Science and Industry, whole30, and Koia are some of ActiveCampaign’s clients.

ActiveCampaign also revealed that it is generating over $165 million in revenue annually. “The fact that we’ve grown so much during a turbulent time proves that our customer experience solution is no longer a nice-to-have, it’s critical to any business’ survival,” VandeBoom told Chicago Inno in an interview. “With this funding, we’re thrilled that we’re able to accelerate the rate at which we’re helping small businesses in our local Chicago community and beyond,” he added further.

Despite the uncertainty and challenges in economic forces globally over the past year, ActiveCampaign has proven that it is capable of accelerating customer and revenue growth. The company has achieved and surpassed its customer usage goals, with records showing that ActiveCampaign generated over four billion automated experiences weekly, 150 million automated campaigns monthly, and two million predictions across its campaigns daily. 

ActiveCampaign’s unique approach to digital marketing also paved the way for their clients to achieve the perfect balance between automation and personal touch. Since then, the company has partnered with over 850 tech companies, including Facebook, Microsoft, Zendesk, Salesforce, Google, and Shopify.

To learn more about ActiveCampaign, visit its website.

Sources:

https://www.chicagobusiness.com/john-pletz-technology/activecampaign-raises-240-million-marketing-automation-platform

https://www.bizjournals.com/chicago/inno/stories/fundings/2021/04/21/activecampaign-valued-at-3b-raises-240m.html

https://www.prnewswire.com/news-releases/activecampaign-raises-240-million-to-help-companies-grow-with-customer-experience-automation-301273496.html

https://www.builtinchicago.org/2021/04/26/chicago-tech-news-042621

Ian Philips

Philip is an outgoing and dynamic type of person. He currently works as content writer and digital artist.

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