Act-On, a Beaverton, Oregon–based provider of marketing automation software, today announced it has secured $42 million in its latest round of funding from Technology Crossover Ventures and several previous investors in the company. This round follows two successful years for Act-On (3X growth in 2012, 2.5X growth in 2013) and brings the total raised for the 6-year-old company to $74 million.
Act-On CEO Raghu Raghavan said that the company will use the investment to expand its sales and development teams, open new offices, and beef up its own marketing efforts.
Currently most of Act-On's customers are small and midsize companies; on G2 Crowd, 83% of Act-On reviewers reported using the product at a company with 1,000 employees or fewer. For these deals, Act-On competes with a slew of fellow up-and-coming marketing technology companies. In larger deals, Act-On squares off against enterprise vendors Salesforce, Adobe, and Oracle that have built up large marketing suites through acquisitions. Raghavan explained that his company's enterprise strategy is different: “We’re coming at the enterprise bottom-up. We tend to penetrate enterprise one division at a time.”
Raghavan also described marketing automation as "a greenfield market with only five percent penetration," further indication that the company is focused on growing at its own pace and carving out a niche in the market.
Act-On on G2 Crowd
Act-On started out as a High Performer on the inaugural Grid℠ for Marketing Automation in July 2013 and moved to a Leader in the Winter 2013 release. Current rankings of marketing automation products on the Grid are based on more than 800 reviews from marketing professionals.
Act-On now has more than 70 reviews and the third-highest customer satisfaction score among products on the Grid℠.
98% of Act-On reviewers said they think the product is headed in the right direction, above the average for all marketing automation products on the Grid of 86%.
Among the features rated highest by Act-On users are campaign management (84% rate of satisfaction) and lead management (90% rate of satisfaction).
Act-On users say:
"We wanted to simplify our emails templates, make it easier for marketing managers to create emails, and have better insight into what our prospects were doing after they received our emails. Act-On has allowed us to do this and so much more." Casey Scott, Marketing Manager, Professional Publications Inc.
"Act-On has not only served as an essential marketing tool to help us increase brand awareness and lead generation, but it has also helped the sales team prospect, prioritize and upsell better because of the system's capabilities and the information available to them through the Salesforce integration." Erika Schonberg Alves, Marketing Director, XCM Solutions
Act-On reviews offer a look at how users feel about the product. For a closer look at how Act-On ranks in the market based on these reviews, see where Act-On stands on the live Grid℠ for Marketing Automation, and compare Act-On to the other Leaders on the Grid℠.