Vancouver-based social media management pioneer HootSuite has secured $165 million in funding for its Series B financing round. The company will use this newly raised capital to continue its growth and corner a bigger piece of the social media management market.
This latest deal was one of the largest rounds of global venture capital funding by any company in the last year. The investment was spearheaded by Insight Venture Partners in conjunction with Accel Partners and existing investor, OMERS Venture.
The capital that HootSuite raised will be used to expand its global presence and accelerate product growth and innovation. The company will also use the funds to scale up their sales and marketing efforts while evaluating acquisition opportunities.
“HootSuite’s goal is to empower people and brands to reach global markets using social media – to help them connect, inform, and succeed like never before,” says Ryan Holmes, CEO of HootSuite. “This capital gives us additional resources to expand quickly and strategically into new markets, innovate rapidly, and deliver on our vision around the world.”
HootSuite is one of the pioneers of social media management. It allows users to manage their social media platforms, conduct social sales and marketing and access to social customer service. Just four years after its inception, it has more than seven million users globally. Part of the company’s growth is attributed to increased social media usage among Hootsuite’s enterprise customers that include PepsiCo, Virgin, UPS and 237 of the Fortune 500 companies.
“As the first institutional investor and largest pre-IPO owner in Facebook, we have long believed in the inevitable relevance of social networks and social media at the consumer level,” says Ryan Sweeney, Managing Partner of Accel Partners. “What’s become apparent is that social channels are also becoming THE manner in which small businesses through the Fortune 500 are opting to communicate with their customers and target markets. By every metric HootSuite’s social relationship platform is powering this evolution in corporate communications, and we are thrilled to now be their partner as they continue to scale.”
HootSuite’s Board of Directors now includes Jeff Leiberman, Manager Director at Insight Venture Partners, Ryan Sweeney, Managing Partner at Accel Partners, and John Ruffolo, Chief Executive Officer of OMERS Ventures as a result of the investment. Details of the deal’s financial terms have not been made public.