iContact

iContact is the largest provider of email marketing software and services to small and mid-sized companies. (www.techcrunch.com) Based in Durham, NC, the company enables companies to create, send, and track email newsletters, surveys, autoresponders. Last year, the company raised $40mn in Series B funding from JMI Equity, which brought the company’s total funding to $53.3Mn. Among iContact’s 65,000 customers are non-profit and political organizations seeking to manage their database of members and communicate with their donors or constituents. The new investment was used for sales and marketing and product development. This investment demonstrates the increasing power of email marketing providers and the investment community’s confidence in this business area. We should see this sector becoming more competitive and saturated in the next few years.