Yammer Raises $85 Million, Leading To Total Of $142 Million
Yammer, the service that is known as the Twitter-for-enterprise, has raised $85 million in funding, which brings them to a total of $142 million. This is Yammer’s fifth round of funding. DFJ Growth led the investment. New investors Meritech Capital, Khosla Ventures, and Capricorn Investment Group joined in this round. The existing investors that also participated include Charles River Ventures and Founders Fund. Randy Glein of DFJ Growth will be joining Yammer’s board of directors.
Yammer saw their sales triple in the last year as demand for upgrades in features were increased. Their user base jumped to more than 4 million users. Due to the growth, plenty of venture capitalists wanted to get their piece of the Yammer pie. Yammer had already raised a new round of funding last year from investors such as U.S. Venture Partners and Social+Capital Partnership. Yammer started raising their new round in January and they had term sheets from investors within 2 weeks.
Yammer CEO David Sacks said that the company is not in a rush for an IPO. They plan on using the funding to add employees. They plan on having about 500 employees by the end of the year. Yammer plans on launching a multimedia ad campaign starting Thursday.
[Source: WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry