Insight Venture Partners

Campaign Monitor's $250 million round was a long time coming

April 17, 2014: 11:42 AM ET

Campaign Monitor raises $250 million from Insight Venture Partners, six years after the two sides first began discussions.

campaign_monitor_logoFORTUNE -- Email marketing and design firm Campaign Monitor yesterday announced that it has raised $250 million in equity funding from Insight Venture Partners, for an undisclosed ownership stake. This deal has been a very long time coming.

Insight first contacted Australia-based Campaign Monitor back in 2008, as the result of an internal program that cold-calls possible investment targets (similar to what private equity firms like Summit Partners and TA Associates have). At the time, Campaign Monitor was a four-year bootstrapped company that was turning a decent profit. It appreciated the interest, but saw no need to take outside capital.

The two groups talked occasionally over the next several years, but Campaign Monitor maintained its equity independence. It also continued to gain market share versus legacy rivals like Constant Contact (CTCT), acquiring more than 100,000 paying customers in 170 countries.

By late last year, however, Campaign Monitor decided it needed to supercharge growth. Not only by opening new distribution channels, but also by building  a sales and marketing effort that had never really existed.

So it called Insight, which jumped on the opportunity.

"One thing that really makes Campaign Monitor stand out is their design work," says Deven Parekh, an Insight partner who led the deal. "I'll bet you get lots of Campaign Monitor emails without knowing they're coming through campaign monitor, whereas when you get a Constant Contact email you know it's a Constant Contact email."

Parekh adds that while Insight committed the entire $250 million -- which represents nearly 10% of the firm's latest fund -- it expects to syndicate out part of the round to other interested investors. He declined to say if the deal gives Insight a control position, but did acknowledge that the round values Campaign Monitor higher than the reported $270 million to $300 million that IBM (IBM) recently agreed to pay for rival email marketing company Silverpop.

Sign up for Dan Primack's daily email newsletter on deals and deal-makers:

  • How would Insight Venture Partners manage ISS conflicts?

    Insight Venture Partners is nearing deal to buy proxy adviser ISS. But how would it handle conflicts of interest?

    FORTUNE -- Insight Venture Partners reportedly is in pole position to acquire Institutional Shareholder Services, the influential proxy advisor that is being auctioned off by current owned MSCI Inc. (MSCI) for approximately $300 million.

    If successful, it will be interesting to see what types of firewalls Insight erects to prevent conflicts of interest MORE

    - Mar 12, 2014 12:50 PM ET
  • Drilling Info raises $165 million

    Big money for energy exploration in the cloud.

    Drilling Info, a big data company focused on the oil and gas exploration industry, today will announce that it has raised $165 million in new financing. Part of the proceeds will be used to buy out existing shareholders, while deal lead Insight Venture Partners will hold a majority ownership position.

    Joining Insight on the deal were Battery Ventures and Eastern Advisors Private Fund. Vaquero Capital MORE

    - Mar 5, 2012 7:05 AM ET
  • Twitter investor nears final close on big new fund

    Insight Venture Partners, the New York-based late-stage and growth equity firm whose portfolio includes Twitter, recently told the SEC that it had closed on approximately $1.05 billion for its seventh fund (kudos to Connie for noticing it first).

    The firm isn't commenting, natch, but a source tells me that this only represents a first close. A second close is expected later this quarter, on a bit more than the $1.25 billion MORE

    - Feb 2, 2011 10:08 AM ET
  • Twitter investor sees larger deals ahead

    Insight Venture Partners, a private equity firm whose investments include Twitter and ExactTarget, is back in the fundraising market. Not for a general vehicle - that would be silly, since it hasn't even called 60% of the $1.25 billion it raised in 2007 - but rather for a co-invest vehicle that would support larger investments.

    No huge surprise that Insight is doing this, considering that it also had a co-invest sidecar to its prior fund. MORE

    - Sep 15, 2010 1:38 PM ET
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by VIP.