Market leader announces first major equity transaction and plans to build a technology powerhouse in Boston
BOSTON, MA – Klaviyo, the SaaS company that obsesses about helping its customers grow, today announced a $150 million investment from global growth equity firm Summit Partners. The funding will be used to hire hundreds of engineers, build the corporate development team and expand in other areas, predominantly in the company’s Boston headquarters.
Klaviyo believes that growth-focused companies must leverage email, website and mobile channels – the channels they “own” – to help accelerate sales and build stronger relationships with customers. By facilitating thoughtful, data-driven customer communication, Klaviyo enables its customers to build relationships at scale, unencumbered by ad networks and other intermediaries. The Klaviyo platform stores a complete view of each end customer’s activities paired with flexible and real-time segmentation to deliver on brand experiences with automatic revenue attribution – all at a fraction of the time and cost of traditional enterprise approaches.
“We’re focused on delivering a platform that quickly drives growth for our customers using channels they need to own,” said Andrew Bialecki, CEO and co-founder of Klaviyo. “Klaviyo’s data and marketing automation platform is powerful, intuitive and cost-effective – allowing marketers to measure and immediately understand what matters most, revenue.”
Klaviyo’s extremely fast time-to-revenue allows companies of all sizes to take advantage of the customer relationships and data they already have. On average, Klaviyo’s customers grow revenues 29% more in the first six months after making the switch to the Klaviyo platform. Today, more than 12,000 brands – including ecommerce leaders such as Bonobos, CustomInk, Colourpop, Steve Madden and Untuckit – rely on Klaviyo to drive sales with super-targeted, highly relevant marketing campaigns and other customer experiences.
“Klaviyo continues to change the playing field in commerce, allowing companies of all sizes to harness the power of data-driven customer engagement activity to grow sales – and the results are impressive,” said Michael Medici, a Managing Director at Summit Partners who has joined the Klaviyo Board of Directors. “With a truly unique combination of product vision and technical expertise, Andrew and the Klaviyo team have built a durable business. We look forward to partnering with them during this next phase of growth.”
Klaviyo continues to aggressively work to build the best place to learn and grow for engineers. Benefiting from a belief that companies do not need to burn cash to achieve greatness, Klaviyo continues to challenge its team and unlock customer growth, all while remaining fast-growing and profitable.
“We have built a product- and engineering-led company that we believe gives the world’s best technical talent an opportunity to work on exciting, customer-centric product development,” said Bialecki. “We are incredibly proud to do this here in Boston – a city with access to an enormous and extraordinary pool of talent. Building an enduring, high-growth business in this city is a core part of the Klaviyo mission.”
Klaviyo is a data and marketing platform that accelerates growth for companies by enabling them to leverage their owned marketing channels. Klaviyo makes it easy to access, store, analyze, and use transactional and behavioral data to power highly-targeted email and advertising campaigns. And unlike other marketing platforms Klaviyo doesn't force companies to choose between advanced functionality or ease of use - so brands are able to maximize their sales quickly. That's why over 12,000 innovative companies like Steve Madden, Taylor Stitch, and Bonobos sell more with Klaviyo. Learn how they're doing it at www.klaviyo.com.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $19 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 475 companies in technology, healthcare and other growth industries. These companies have completed more than 140 public equity offerings, and more than 190 have been acquired through strategic mergers and sales. Notable SaaS and retail technology companies financed by Summit Partners include FineLine Technologies, Fuze, Gainsight, Infor, Mi9 Retail, Podium, RELEX, Reverb, Sezane, RightNow, Smartsheet and Unica. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, please see www.summitpartners.com or on Twitter at @SummitPartners.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners LLP, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners LLP is a limited liability partnership registered in England and Wales with registered number OC388179 and its registered office is at 11–12 St. James’s Square, London, SW1Y 4LB, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.