1st Aug 2011. Sydney-based BigCommerce, the fastest growing e-commerce platform in the world with almost 20,000 clients, today announced the closing of a US$15 Million Series A investment from General Catalyst Partners. In addition, Larry Bohn, managing director at General Catalyst, has joined the BigCommerce board. The funds will be used to rapidly expand the company’s headcount in both Sydney and Austin, Texas, including additions to the senior management team, accelerate the introduction of enterprise-level features to small business customers and increase distribution of the product platform.
“BigCommerce’s organic growth to date has been astonishing, especially when you consider the company has been bootstrapped with no outside funding or debt”
“Our platform has been used to launch almost 20,000 successful online stores in the last two years, making it the fastest growing e-commerce platform in the world,” said Eddie Machaalani, co-founder and co-CEO of BigCommerce. “Based on our growth, the market opportunity and increase in the number of small businesses being started, it made sense for us to raise capital now and take advantage of the market’s potential.”
The company, which charges clients a monthly fee from $26 to $300, posted $10 million in revenue last year and is on track to reach $15 million to $20 million this year. It has been profitable since inception.
With this investment, the company aims to build on a number of recent achievements including:
- Becoming the fastest growing e-commerce platform for SMBs in the world, and the 44th fastest growing software company in the United States
- Increasing its client count 680% year-over-year
- Adding well over 1,000 new paying clients every month
- Approaching 20,000 paying clients and $200 million in total transactions
- Opening a new Austin office, more than triple the size of the company’s former office
- Hiring dozens of employees on a track to double in size by the end of 2011
“We’ve proven BigCommerce can scale and we’ve proven the model. Now it’s time to expand our platform so we can help businesses take advantage of innovations around online retailing, mobile and social commerce,” added Mitchell Harper, co-founder and co-CEO of BigCommerce. “The way people buy is changing, and it’s no longer just about having your own online store. Small business owners want to sell everywhere their customers are which includes Facebook, eBay, and mobile devices. BigCommerce gives them the tools they need to do just that.”
“BigCommerce’s organic growth to date has been astonishing, especially when you consider the company has been bootstrapped with no outside funding or debt,” said Bohn. “Mitch and Eddie are visionaries who understand the e-commerce space at an extremely detailed level. The innovation in the product, the amazing feedback from clients and the fantastic teams in Sydney and Austin all make for a company poised to be the leader in this space. We’re proud to be associated with the company and look forward to helping them towards their unlimited growth opportunities.”
Founded 8 years ago, BigCommerce handles most of its software development in Sydney, where it has 25 employees. It opened its North American headquarters in Austin, Texas 2 years ago. Today, the company has 45 employees, mostly in sales, marketing and support, at its US offices, and plans to double in size by year’s end.
BigCommerce, ranked #633 on the Inc 5,000 list of fastest growing companies for 2010, is the fastest-growing e-commerce platform in the world with almost 20,000 clients since launching in September 2009. A unique combination of enterprise-level features (including multi-channel retailing, automated email marketing and inventory control) and unmatched ease-of-use make BigCommerce the preferred e-commerce platform for both new and established businesses looking to outsell their competitors, reach their financial goals faster and automate as many business processes as possible. BigCommerce has been featured in Forbes, TechCrunch, Inc Magazine and Internet Retailer. For more information or to try BigCommerce for free, go to www.bigcommerce.com.
About General Catalyst Partners
General Catalyst Partners is a venture capital firm that invests in exceptional entrepreneurs who are building technology-based companies that will lead innovation and transform industries. Founded in 2000, General Catalyst Partners leverages its principals’ extensive operational, business development and technological expertise to provide portfolio companies with a catalyst for success through business-building and partnership development assistance. For more information, please visit: http://www.generalcatalyst.com.
General Catalyst Partners
Michelle Daubar, 617-234-7028
Steve Donnelly, 512-758-7606