Squarespace pulled in $300 million of new funding that gives the company a “staggering” $10 billion valuation, TechCrunch reports.
Why It Matters: As a public offering looms, the new money will “advance the company’s growth initiatives and help it scale its product suite.”
More On Squarespace: The online website full-stop creation and hosting service, which now dabbles in e-commerce as well, was founded in 2003 and survived on self-funding until it raised $38.5 million in 2010. It added another $40 million in 2014, and an “epic 2017-era $200 million secondary round that General Atlantic financed,” which implied its valuation had grown by a multiple of five in just over three years.
- Back in 2017, the company was reportedly profitable. Revenues had increased roughly 50% from the prior year to around $300 million.
- The New York City-based company now has more than 1,200 employees between its HQ and satellites in Dublin, Portland and Los Angeles.
What’s Next: Squarespace filed confidentially to go public just under two months ago. It’s unclear at this point if it will pursue a direct listing or traditional IPO.
Squarespace is a very interesting company. On one hand, the market for easy, beautiful websites for small businesses is a gigantic and growing market.
On the other hand, they’re not super differentiated from Wix or Web.com. Furthermore, any website that requires real customization or features will probably require WordPress or something more complicated.
Regardless, I think the internet is a large enough universe to allow for many huge players. And if Squarespace can be a subscription leader in website creation and hosting, it would be a very attractive company to own.