Squarespace Lands $38.5M to Expand Its Web Publishing Platform
By CAMILLE RICKETTS of VentureBeat
Squarespace, the seven-year-old web publishing service that helps tens of thousands of users build and host personal and commercial websites as well as blogs, has brought in $38.5 million to continue developing its product.
This first round of outside venture capital was led by Index Ventures and Accel Partners.TechCrunch estimates the company’s value at above $100 million.
Based in New York, Squarespace offers users a basic package of 1 gigabyte of data storage and 60 website templates for $8 a month. But they can also choose from a number of premium options that come with more storage space and some bells and whistles. The highest monthly subscription fee is $50.
Squarespace says it has been profitable since 2004. Both users and revenues have doubled every year for the last several years, and its staff has swelled to 30. Its client base includes Porter Novelli and ABC News.
The company competes with better known web publishing players like Automattic’s Wordpress and Six Apart’s Typepad, not to mention Google’s Blogger. These first two services have raised $30.6 and $22.6 million in venture funding, respectively. It’s unclear how Squarespace plans to distinguish itself from the this field, aside from an advertised emphasis on design.
Responding to trends in the web publishing market, the startup will be focusing on simplifying its tools and options to make it even more user-friendly. The need for this stems from services like incredibly simple and streamlined blogging site Tumblr and others like it.
Squarespace’s most immediate goal is to release a fresh edition of its platform (the sixth iteration), within the next nine months.
Representatives from both Index and Accel will join the company’s board of directors, along with Getty Images Founder and CEO Jonathan Klein.
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