Business tools have gone completely virtual over the past 20 months due to the Covid-19 pandemic, and today a startup whose electronic documents platform has played a big role in supporting this change announces a big fundraising in the wake of huge growth. . PandaDoc, which allows users to create, share and sign official documents online, has closed a Series C that the company confirms is valuing it at $ 1 billion.
To be clear, PandaDoc does not make public the total amount of funding for this cycle. The company is based in San Francisco, but it has extensive operations in Belarus, where it has been in hot political water – several employees were arrested by authorities over a year ago after publicly protesting against it. the current regime. The lack of disclosure on the size of this cycle is intentional and related to this. From what we understand, this situation is still ongoing.
OMERS Growth Equity and G Squared are co-leading this Series C, and Altos Ventures, Rembrandt Venture Partners, One Peak Partners and the venture capital arm of Microsoft M12 are also participating.
Prior to that, PandaDoc had raised around $ 36 million and its valuation was around $ 255 million, according to data from PitchBook. The sharp rise in valuation with this round can also be seen as a marker of the size of the Series C.
Today, PandaDoc – which competes with DocuSign, Eversign, DocSend, GetAccept and others – already provides a range of services to users in many different verticals. The content ranges from creating and collecting electronic signatures and payments around contracts, proposals and forms to invoices; and PandaDoc users are also quite diverse, including construction, education, healthcare and professional services companies – some 30,000 customers in total. The plan will be to double the growth of this current business and integrate more features and use cases.
“We plan to broaden and deepen in areas where we already play,” said Mikita Mikado, CEO and co-founder of PandaDoc, in an interview with TechCrunch. Its contract management product is one of the most popular already on the market, and PandaDoc claims its electronic signature solution is one of the top three in terms of ubiquity. “We will continue to compete in these areas, but at the same time, we plan to go global this year and invest in localization and international growth. “
This follows on from an already strong business. PandaDoc’s customers are currently spread across some 130 countries, and over the past year, its user base has grown by 80%, with revenue increasing by 63%. (The company’s business model is based on a freemium model, where the basic electronic signature is free – notably, an adjustment made at the start of the pandemic, and perhaps one of the reasons why this is the ‘one of the top three eSignature solutions today – and the additional features and usage are priced at $ 19 / mo, $ 49 / mo, and enterprise-wide “Let’s Talk” tiers.)
The “Let’s Talk” component is important as part of this investment. Small and medium-sized businesses are the bread and butter of the business, but investors also see an opportunity to sell in the market, greatly expanding the functionality it offers to customers.
“As a leader in the SME segment, we believe the company is uniquely positioned to challenge current incumbents with a dynamic, full-stack product that goes far beyond the electronic signature,” said Larry Aschebrook, Managing Partner by G Squared, in a press release. . “The management team is one of the best we have seen, and we look forward to supporting their creative and effective approach to this growing space. “
Mikado puts it differently: “The more workflows we can automate and achieve over time, the better. “
PandaDoc’s widening window of opportunity is a sign of the times.
Covid-19 precipitated a huge amount of so-called ‘digital transformation’: Organizations that in the past did a lot more work in physical environments were essentially, overnight, urged to move all of this into digital and virtualized formats. .
While this certainly saw companies making larger infrastructure and operational changes, it also played out at a more immediate service level. Specifically, everyday documents such as documents that people had long relied on in physical formats were still being created, shared and made official, but now it all had to be done in a digital format: this ushered in a great wave of business for companies like PandaDoc.
The company got its start, Mikado said, with B2B sales, “but we’ve started getting requests from organizations that have other use cases that aren’t in the same bucket, like schools. , government institutions and health organizations trying to rationalize their employees, eg integration.
It is in part because of this trend that investors are swarming around enterprise technology. The other main reason in this case is that PandaDoc turned out to be one of the solutions that generated a lot of interest.
“We are proud to have led this new investment in PandaDoc, a highly innovative company shaping the future of documents, through its robust all-in-one document automation platform,” said Mark Shulgan, Managing Partner and Director of OMERS. Growth actions. “PandaDoc is a market leader in document automation and its solutions enable businesses to increase efficiency, reduce costs and accelerate growth. We are delighted to support Mikita Mikado’s ambitious vision and look forward to supporting him and his team in this future evolution.