Optimizely Raises $28 Million In Series A

Posted Apr 11, 2013

Optimizely  is an A/B testing company that has raised $28 million in Series A funding led by Benchmark Capital.  New investor Bain Capital Ventures participated in this round with existing investors Battery Ventures, InterWest Partners, and Google Ventures.  Through the funding, Peter Fenton (Benchmark) has joined Optimizely’s board of directors.

Optimizely currently has 68 employees and will be expanding into 35 countries across 9 languages.  Optimizely started by going through the Y Combinator startup accelerator program in October 2010.  Optimizely currently has a revenue run rate in the “double digit millions” and their annual revenue growth rate between March 2012 and March 2013 was over 400%.  The company is cash flow positive.

The company was co-founded by former Google product managers, Dan Siroker and Pete Koomen.  Siroker was the Director of Analytics during the Obama 2008 presidential campaign.  His team on the Obama campaign relied on A/B multivariate testing to maximize volunteers, donations, and e-mail sign-ups.

The A/B testing features built into Optimizely includes drag and drop elements to see what works best.  Optimizely is going to allow website owners to personalize their websites for individual users.  Optimizely already allows companies to test different versions of a website on certain types of users so it will be able to quickly set up a broader range of websites for all of the users on a website based on demographics or the type of device.