VC Firm, Battery Ventures Leads a $70 Million Investment in ExactTarget Along With Scale Venture Partners and Montegu Newhall Participating
Based in Indianapolis, Indiana, ExactTarget is a company that provides an on-demand email and one-to-one advertising. ExactTarget has sealed a deal to receive a $70 million venture investment with Battery Ventures leading the funding with Scale Venture Partners and Montegu Newhall participating in the funding. ExactTarget was founded in late 2000 and since then has become a leader in the online advertising industry. ExactTarget’s product offers advertisers on-demand one-to-one and email marketing applications that can generate advertising to a specific user or group of users to boost their sales by having a custom tailored advertisement aimed to a targeted audience that would allow businesses to increase their sales potential.
What makes this investment so phenomenal is that this round of investment seems to be one of the largest investments in the United States this year. According to Scott Dorsey, ExactTarget’s cofounder and CEO, ExactTarget has had three years strait of continuous profitability and more new clients coming on board and the proceeds from this new funding will greatly accelerate the company’s ability to create new innovations and maintain operational flexibility. ExactTarget is a privately held company and plans to delay its plans to become publicly traded on the NASDAQ and it would have been identified with the tag EXTG.
According to Michael Brown, general partner at Battery Ventures, the company has quite a bit of momentum and has the ability to be a dominant entity in the online advertising marketplace. ExactTarget’s platform is very stable and the company also has quite a few clients, who are prominent Blue-chip companies.
As part of the deal, along with this round of funding, Mr. Brown will join ExactTarget’s board of directors. Mr. Brown currently also sits on the board of directors at FingerHut.
The driving force for this funding is that in the last quarter, ExactTarget reported that it had record sales and added on over 250 new clients, making this the 13th profitable quarter for the company.
As far as Rory Driscol, managing director of Scale Venture Partners, is concerned; ExactTarget has made one-to-one marketing a major and cost effective solution for companies to advertise their products online worldwide. The team at Scale Venture Partners believes that the market lacked the type of innovative products that ExactTarget offers.
According to Jim Lim, partner at Montegu Newhall, despite this difficult economy; ExactTarget is able to keep having amazing returns and is an excellent performer for the vc firm. In receipt of this investment, ExactTarget has become one of Montegu Newhall’s largest holdings and ExactTarget looks to be an awesome opportunity for the vc firm.
Battery Ventures was founded in 1983 and invests in technological innovation globally. Battery seeks entrepreneurs and management teams across all sectors of the tech industry and the vc firm also invests in all terms of the company’s life from startup to later stages and equity funding. Some companies who are currently in Battery’s portfolio include AngiesList, FingerHut Direct Marketing, GuideWire, and others. Battery Ventures has offices in Boston, Massachusetts and Israel and has over $3 billion in capital under its management.
Scale Venture Partners is based in Foster City, California and has an extremely high quartile track record for returns. Scale Venture Partners has extensive operational networks and builds leading portfolio companies in the healthcare and technology industries. Some companies in Scale Venture Partners’ portfolio include FrontBridge, GluMobile, mBox, ScanSafe, and others.
Founded in 2000, Montegu Newhall manages over $1.4 billion in assets across four vc funds. Montegu Newhall is made up of various investing organizations ranging from family offices to endowments, venture capitalists, corporate pension funds, and foundations. The team at Monetgu Newhall leverages its investment expertise to provide a higher quality vc product to its investors.
For more information on ExactTarget, click here.