E-Marketer ExactTarget Gets $70 Mil. In VC Funding

moneyEmail marketing provider ExactTarget said Wednesday that three venture-capital firms have infused it with $70 million in capital. It has withdrawn its application to go public.

ExactTarget also said it added more than 250 new clients and upped sales by 40% in the first quarter, though it did not provide a revenue figure. Clients that reached agreements in the quarter include the Minneapolis Star Tribune, Pier 1 and SkyMall. U.S. News & World Report and Gannett have also utilized the company's services to help integrate traditional and online marketing efforts.

The company said the funds amount to "a similar level" of funding to what it expected to raise in its IPO, which it announced it was pursuing in December 2007. The three investors are Battery Ventures, Scale Venture Partners and Mantagu Newhall.



CEO Scott Dorsey said the company has been profitable for three straight years, but "we know a significant amount of market opportunity remains both domestically and internationally" and the $70 million will help accelerate growth. The company said it will announce the location of its first international office in the next 30 days.

ExactTarget has pulled its application to go public on the NASDAQ in the face of difficult market conditions. Fellow email service provider Constant Contact's stock was trading in the $16 range Wednesday, down from a 52-week high of $21.24, but up from a low of $10.32.

Battery Ventures' Michael Brown, who will join the board of directors, said, "ExactTarget is enjoying a lot of momentum and has the right ingredients to continue to dominate a large and growing market."

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