Privy Raises $4.25M in Funding to Help SMBs Increase Online Sales
Building a company is hard and while some companies fail, others take a second look at the market and ultimately pivot to a product that sees incredible demand.
Privy is a textbook example of the pivot. We've previously covered the company's history and how it pivoted to its current platform. It wasn't an easy process, but let's just say their hard work has paid off.
Today, Privy announces a $4.25M round of funding led by Sam Clemens from Accomplice with participation from Tuhaye Venture partners and other angel investors. We caught up with Founder and CEO Ben Jabbawy to get the scoop on this new funding round, as well as what's next for the company.
Congratulations on your Series A round of funding! What are the details on this round of funding, and how do you plan to use the capital to accelerate the business?
We’re excited to announce a $4.25M round of funding, led by Sam Clemens from Accomplice with participation from Tuhaye Venture partners and other angel investors. Sam was the first VP Product at Hubspot, and later the co-founder and chief product officer of InsightSquared.
With this funding, we’re now able to accelerate our hiring and output across all areas of our business, from product and customer success to sales and marketing.
From your point of view, how is the eCommerce market evolving?
eCommerce is exploding.
Magento was acquired by Adobe for $1.6B. Shopify is now valued at $15B, with over 600,000 small businesses selling on the platform.
And the Direct to Consumer landscape (D2C) in 2018 looks a lot like the B2B marketing landscape in 2005, when Hubspot first launched on top of the salesforce app exchange. B2B marketers could piece together blogging, email, SEO across multiple, homegrown or clunky solutions, not fully built for their specific needs and workflows.
The parallels are uncanny for D2C entrepreneurs.
They’ll host their Storefront and transactions on Shopify.
They’ll go directly to Facebook and Instagram to drive traffic.
They’ll lean on legacy email programs that cover non-profits, SaaS, restaurants, and commerce under the same user experience for all.
On top of that, they’ll turn to separate vendors for lead capture, retargeting, shipping bars, coupons, abandoned cart, and more.
“CRM”, “CDP” and other enterprise buzzwords have no place for the small commerce entrepreneur, whether they are in Boston or in New Zealand, sharing their craft with the world.
We really see an opportunity to expand our easy-to-use platform to help solve more eCommerce-specific marketing use cases under one roof for the largely underserved small and emerging community of entrepreneurs.
How is Privy helping companies, and how has your product suite been evolving?
Privy has made a name for itself enabling commerce entrepreneurs to convert site traffic into leads and sales. Our “wedge” into the market was offering a simple set of tools to grow our merchants’ email list quickly via pop-ups and other displays with a small set of triggers and targeting rules.
As our merchant base scaled globally, we kept seeing requests for solving other problems for our entrepreneurs beyond email capture. For example, letting people use Privy displays to promote new products and offers without a form, reach people with unique offers before they abandon a shopping experience, suggest other products they might like based on which products are in the cart, and driving on-site engagement through gamification.
Most recently, at the request of our customers, we’ve expanded into a broader set of abandonment and promotional email uses like abandoned cart emails, newsletters, and coupon reminders that tie in directly with our on-site tools and the eCommerce platforms we integrate directly with.
Merchants that already love the Privy brand, educational resources, and support and already trust that our software drives results have been quick to adopt new use cases under that same roof.
Can you share the details on the scale of Privy in terms of customers and examples?
Today we support over 300,000 merchants in 180 countries with the tools they need to grow their commerce businesses. And through the Privy suite of tools, we’re now helping drive over $100M in sales for our merchants every month. Every month, we’re seeing another 10,000+ merchants adopting the Privy platform for their stores.
What's the size of your team now? What's your plan for hiring over the next year or so, and for what type of roles?
In 2018 we grew from 10 employees to 30, bringing in talent from some of the top companies in Boston like HubSpot, Klaviyo, Wordstream, and Constant Contact.
And in 2019 we expect to expand from 30 to 60 in our Boston office across Engineering, Product, Marketing, Customer Success, and Sales. We’re now actively hiring for a number of roles.
What's the future outlook for Privy?
We really see an opportunity to build a powerful and trusted brand and platform that is dedicated to serving small and medium-sized businesses with a turnkey platform designed to drive traffic, convert traffic into leads, sales, and repeat purchases and ultimately enable entrepreneurs and businesses with an entrepreneurial spirit to pursue their dreams.