In 2007, four-year-old iContact was growing rapidly with a proven product and customer acquisition model. Management saw an opportunity to quickly expand market share in the SMB email marketing space and needed working capital to finance their aggressive growth plans. iContact also sought an investor to help navigate the challenges of steep SaaS model growth, leading the Durham, N.C., company to team with Updata Partners.
Updata facilitated iContact’s increased investment in sales and marketing, which expanded the customer base of 11,000 to more than 57,000 in just two years. Following this growth period, Updata helped position iContact for a $40 million recapitalization by JMI Equity.
Revenues grew by 625% from 2007-2011 and iContact solidified its position as the top privately held email marketing provider in the SMB market. In February 2012, Updata helped facilitate iContact’s $169 million sale to Vocus, Inc. (NASDAQ: VOCS).
“Many investors are financially oriented. It is rare to have investors with operational experience. That they have…experience in the software as a service area gives us added faith in their advice. Their prior operational experience has been very helpful to us. With their help we have been able to grow and scale our business much more rapidly than we would have without them. And we definitely have good chemistry with them.”
– Ryan Allis, CEOPortfolio Page