Email marketing startup ConvertKit raises $1.8m from large group of angel investors
Marketing, The Web App Challenge | July 7th, 2016
ConvertKit, an email marketing company for professional bloggers, has just announced they closed a funding round of $1.8 million from a large group of angel investors. While a traditional angel round may include up to 20 investors, this round was far over-subscribed with over 6,500 investors participating. This new funding will be used to expand the growth, engineering, and customer success teams.
Instead of equity these investors—commonly referred to as “customers”—are given access to the ConvertKit software product each month.
This revolutionary new model of small monthly investments makes it accessible to investors who may not have tens or hundreds of thousands of dollars on hand. Rather than deal with wire transfers, ConvertKit accepted credit card payments through the payment processing startup Stripe.
“With a beautiful product and 15-20% month over month growth, ConvertKit is in a great position to lead the blogging market…”
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Alright, I can’t continue writing like a generic press release any more. If you haven’t picked up on it already, this is a joke. We didn’t raise funding (Want to know what we did instead? Read this article).
Instead we focused on serving our existing customers, got our expenses under control, and started focusing on profits. You know, like a traditional business.
This post isn’t to brag about what we’ve built or how we’ve accomplished the growth. Instead I just want to say thank you.
Thank you to our customers. We didn’t build the company—you did. $29 at a time you enable us to work each day on the product we love. We get to work remotely from our favorite cities around the world. Working to help bloggers turn pro and make a full-time living from their work.
So as you see blog posts or hear podcast interviews about what I did, or how the ConvertKit team accomplished X, I want you to know your part in it. We couldn’t do it without you taking a bet on a small company trying to change the industry.
The term “angel investor” makes it sound like the investor saved the company. Like an angel came down from heaven. For most investors I think that gives too much credit to their role. The company would have done just fine without them. It’s different with customers. We wouldn’t exist without you.
We’re proud to be independent and customer funded.
Thanks for being a part of the ConvertKit family and enabling us to build what we love.
Seriously, you’re amazing.
Haha! Great article Nathan. You almost had me! I’m so proud to be a customer and look forward to being one for a long time. Keep up the awesome work!
That was so good. I was sad for a moment there. I have a serious crush on this company!
This is hilarious. April Fools… except it’s July.
You had me for a second there.
I’m guessing you and Rob didn’t coordinate this post.
Just Awesome ! And just so true about the reality of the funding. You did raise this money and you raised it from people believing in your product (and in its return value it would give them … in their own business). Customers are Business Angels ! What a refreshing view of what creating a business should be !
Nathan, you’re a great company builder and you have such a sense of humor at the same time. You clearly made my day ! I’m following you since almost the start (way before the web app challenge) and it’s so refreshing to see your growth, your success, your modesty and simplicity at the same time. You made a new voice in the way of building a company, a voice I’m learning a lot from. You’re such an inspiration. I will paraphrase you, but wow, seriously, you’re amazing ! Thanks your Nathan.
Thanks so much to take the time to share all this with us. This is a huge contribution for entrepreneurs (and so much other people) !
I was going to say…this doesn’t sound like the ConvertKit I’ve come to know
Brilliant. Love it, Nathan. Keep up the great work.
Hahaha, love it.
Great article Nathan. You tricked me. Keep up the great work. I love your product. I am a barber by trade and this is the first email system that I have been able to learn how to operate. You really made it so simple. I currently have a few online courses and 3 books that I sell with my automated system. I mainly use my free social media accounts to sell my products. I currently have 2,600 emails, 24k Instagram followers and 5k facebook followers. Thank you for convertkit. Darrell V is an awesome guy. I live in Nashville.
Good one! At first, I thought this was something new that start-ups were doing to raise capital…as I’m usually behind on this stuff.
Devin
Keep up the great work CK!