Automattic raises $160 million at $1.16 billion valuation
Automattic, the parent company of WordPress, has raised $160 million in funding from several investors, including Insight Venture Partners, True Ventures, Tiger Global Management, Iconiq, Chris Sacca, and Endurance. This round of funding values Automattic at $1.16 billion. The last time that Automattic raised institutional funding was a $12 million round in 2008.
On the secondary market, Automattic raised $51.7 million in May 2013 and $75 million in September 2013. Interestingly, the $1.16 billion valuation is around the same amount that Yahoo! spent to acquire social blog company Tumblr last year. Automattic plans to use the funding for growing the business, expanding its employee base, and increasing marketing.
“WordPress is in a market as competitive as it has ever been, especially on the proprietary and closed side. I believe WordPress will win, first and foremost, because of its community — the hundreds of core developers and large commercial companies, the tens of thousands of plugin and theme developers, and the millions of people who build beautiful things with WordPress every day. Automattic is here to support that community and invest the full strength of our resources to making WordPress a better product every day, bringing us closer to our shared mission of democratizing publishing. But a majority of the web isn’t on an open platform yet, and we have a lot of work ahead of us,” said Automattic’s founding developer Matt Mullenweg in a blog post.