Squarespace has raised $300m in a funding round that gives the website building and hosting company a $10bn valuation, putting it squarely into the decacorn club.
The funding round comes after Squarespace filed to go public with the Securities and Exchange Commission in January.
The New York-based company said it would use the influx of cash to “advance Squarespace’s growth initiatives”.
“We’re thrilled to welcome our new investors as we continue scaling our product suite in service of our customers around the world,” said Squarespace founder and CEO Anthony Casalena in a short statement posted Tuesday.
The round includes new investors Dragoneer, Tiger Global, D1 Capital Partners, Fidelity Management & Research Company, funds and accounts advised by T. Rowe Price Associates, Inc. and Spruce House. It means these late investors will be able to grab a slice of the proceeds from the initial public offering or direct listing.
It also attracted previous investors Accel and General Atlantic. In 2010 Accel co-led a $38.5m Series A round. A $40m round in 2014 and a $200m secondary round financed by General Atlantic in 2017. Following that round, it was valued at $1.7bn.
Squarespace’s core business is providing a Software as a Service (SaaS) platform that allows customers to create websites using pre-built templates. Users can drag and drop elements to create customised layouts based on these existing designs. It has since expanded into ecommerce by providing hosting for online stores.
The company reached $1m in revenue in 2006 while Casalena was still the company’s only employee. In 2016 the WordPress rival said it surpassed one million hosted websites. Casalena told Forbes that his operation had revenues of “half a billion” and was “profitable nowadays” in 2019.