On Wednesday, LeadPages, the renowned leading landing page and lead generation platform, announced its raising $27 million in Series B round of funding, led by Drive Capital. The other participants include Foundry Group and Arthur Ventures, who are the previous investors of the company.
Founded in 2013 by Collins and Tracy Simmons, LeadPages designed and built templates for businesses that could be used in pages in the websites to take orders and get information from potential customer. These tools include landing pages, web forms, automation links, SMS lead gen processes and a/b testing. The platform also provides support for various customer interaction types that include signing up for a webinar, downloading a free white paper, driving sales of products and services and simply capturing names and contact information. The company designed its product as a monthly service, giving itself a subscription-like revenue stream.
In 2013, the company raised $5 million and $6 million in Series A funding which together with the current funding totals to $39 million. Though the company has not released its post funding valuation, other such similar startups have been recently valued from $500 million to $1 billion. The $11 million the company raised in its previous funding has not been spent by the company. “Having this money in our coffers allows us to make larger bets,” said Clay Collins, the co-founder and CEO of the company. The company plans to buy two or three companies over the next one year as it triples its engineering staff and adds to its sales team, said Collins. He claims the company has been cash-flow positive since its inception in January 2013.
Apart from expanding the business, another usual reason behind raising the current funding is that it is a good accounting practice for software-as-a-service startups such as LeadPages to have no less than half their recurring revenue in the bank, said Collins. Following the funding, Drive Capital partner and co-founder Chris Olsen joins the board of directors. “We have helped over 35,000 customers rapidly create high-converting landing pages, run a/b split tests, SMS lead generation campaigns and others. This banking will help us to expand our reach even further and it makes us not only the largest company in this space, but the most well-funded.”
LeadPages has a competitive advantage over its competitors like Squarespace and Weebly as it is the only one that gives attention to the conversion rates. By making conversion a priority, the startup has the competitive edge among customers who want to build a website with the sole purpose of capturing sales or signups. It even allows users to sort templates on the basis of estimated conversion rate, which is unique to LeadPages.