Bigcommerce raises $50M, eyes IPO

Nov 19, 2014
Austin Business Journal

Software maker Bigcommerce Inc. has completed a $50 million Series D round of funding to provide the startup with enough runway for a initial public offering within two years


The company, which operates a North American headquarters in Austin, collected the capital from a syndicate of investors that included Japan-based SoftBank Corp. It increases to $125 million the amount of investment capital Bigcommerce has received since launching, Chief Financial Officer Robert Alvarez said


The capital will be used to expand product development coupled with marketing efforts in Europe, Latin America and Asia, he said


"The e-commerce market has grown pretty rapidly," Alvarez said. "This will allow us to expand the market even more than we are today."


He's expecting the company to file for an IPO in 12-24 months


Bigcommerce was founded in Australia as Interspire Pty. Ltd. in 2004. It subsequently changed its business model and opened an Austin office in May 2009. The company now develops software designed to automate the creation of online stores. It employs 350 workers, including 250 in Austin


Alvarez expects Bigcommerce to hire an additional 100-150 workers in Austin during the next 18 months


The startup generated revenue of $23.5 million during 2013, according the Inc. 500 ranking of companies


In July 2013, Bigcommerce received a $40 million Series C round of funding from Washington, D.C.-based Revolution Growth Fund. As part of the deal, Revolution CEO Steve Case — the co-founder of America Online Inc. — joined company's board of directors


In September 2012, Bigcommerce completed a $20 million Series B round of funding one year after a $15 million Series A financing. Investors included Boston-based General Catalyst Partners and the California-based Floodgate Fund LP



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