Squarespace, one of the largest professional blogging platforms, just announced that it has received a $38.5 million investment from Index Ventures and Accel Partners. Until now, the company, which was founded by then 21-year-old Anthony Casalena, did not take any institutional outside investments. Instead, Squarespace, which offers a trial version of its service but no free tier, has been growing organically. The company plans to use the new cash influx for product development and to hire more team members.
Squarespace managed to quickly make a name for itself over the last few years. Some of the company's current customers include ABC News Radio, Bob Woodruff and Don Imus. The company's services make it easy for customers to set up their own blogs and manage their online content. UnlikeWordpress.com and similar free blogging platforms, Squarespace has always gone after paying customers that are looking for a professional and an easily customizable publishing platform. Subscriptions to Squarespace start at $8 per month.
As part of this investment, Index Venture's Dom Vidal and Accel Partners' Andrew Braccia will join Squarespace's board. In addition, Getty Images CEO Jonathan Klein will join the board as well.
“Squarespace has been a profitable business since its first year of operation. This investment will not change that, but it will allow us to be much more aggressive in our quest to both create an incredible product and bring that product to market.”