ContactMonkey, a leading platform for creating, sending, and tracking internal communications through email, has announced a successful Series A funding round that raised $55 million. The investment was led by Updata Partners, a venture capital firm. The significant funding signals investor confidence in ContactMonkey’s profitability and potential. Notably, ContactMonkey was bootstrapped until this point, making this investment all the more remarkable.
Key Takeaway
ContactMonkey secures $55 million in a Series A funding round to expand its email software for internal communications. The platform offers robust features, user-friendly design, and powerful engagement analytics, setting it apart from competitors. Its success demonstrates the increasing demand for effective internal communication tools in the remote work era.
Meeting the Communication Needs of the Remote Work Era
Braden Snyder, a partner at Updata, believes that ContactMonkey is filling a critical void in the market with its robust and user-friendly solution. As companies continue to seek effective ways to engage and retain talent, ContactMonkey offers a powerful platform for communicating with employees in a meaningful way. In the age of remote work, companies must find innovative avenues to connect with their staff, and ContactMonkey empowers such communication.
ContactMonkey’s founder and CEO, Scott Pielsticker, has stated that the newly raised funds will be utilized to expand into international markets and double the size of the company’s 80-person team. Special attention will be given to strengthening ContactMonkey’s sales and marketing departments. Pielsticker emphasizes that the decision to raise funds was driven by the significant market demand for internal email platforms. ContactMonkey is confident that it is well-positioned to meet this widespread demand.
A Platform Designed for Seamless Internal Communication
Prior to launching ContactMonkey, Pielsticker founded Blueback, a successful London-based taxi company. It was during this time that he recognized the clear demand for a platform that could help businesses engage employees through email. With this insight, the mission of ContactMonkey became to create a beautifully designed and user-friendly product that revolutionizes internal communications. The platform seamlessly integrates with popular email clients like Outlook, Gmail, and Teams, as well as SMS and human resources information systems such as Workday and ADP.
ContactMonkey offers features that enable companies to orchestrate effective internal communication, including company announcements, alerts, and updates. The platform provides engagement analytics, allowing users to build segmented employee lists, gather feedback, and track metrics such as click-through rates, open rates, and read rates. This data-driven approach sets ContactMonkey apart from other email communication tools, which lack insights into engagement and often lack enterprise-level security.
Competing in the Market and Ensuring Future Growth
While there are other players in the market for managing internal emails, such as Staffbase and Mailchimp, Pielsticker believes that the significant investment from Updata positions ContactMonkey as a strong competitor. ContactMonkey currently serves approximately a thousand customers, and Pielsticker notes that their customer base is steadily growing. The COVID-19 pandemic has further increased the need for effective communication with remote workers and the maintenance of company culture. ContactMonkey is confident that this significant investment will provide them with the necessary resources to navigate any potential market challenges that may arise in the future.
