Acquia raises $8 million series B

I'm very pleased to announce that Acquia has raised an additional 8 million USD in a Series B round of funding. As explained in our press release, the investment was led by our existing investors, North Bridge Venture Partners and Sigma Partners. Combined with our Series A funding, this brings our total funding to 15 million USD.

The Securities and Exchange Commission (SEC) published our filing faster than expected and as a result, some of you may have already heard this news. That will teach us to coordinate things better -- not a big deal, but another lesson learned. Interestingly, there is nothing like a scoop to generate coverage and the funding news was picked up by TechCrunch, Washington Post, The Boston Globe, Mass High Tech, Venture Beat, CMS Wire, Xconomy and many others.

Raising this additional money is no small thing, especially in the current global economy. It is a testament to the hard work and dedication of all the Acquians and the momentum we have achieved.

Series B fundraising

Pitching our investors over Skype. Tom was attending the meeting in person but I couldn't travel because my wife was about to give birth to our son, Stan. Taken with my iPhone.

But how will the money of our series B funding be used, you ask?

First, this new funding lets us accelerate our existing support business. Our support business is performing better than we expected but, of course, there is still a lot of work to do. We'll use the money to grow our support business and to expand the market for Drupal in the enterprise world.

Second, the new funding allows us to complete the strategy that we laid out early in 2009, directly leading to new products like Acquia Hosting, Acquia Gardens and Acquia Training. We'll also be looking to add some new products and services to the Acquia Network as part of our subscription offerings.

My vision for Acquia has always been to offer a unique combination of products, services, and technical leadership that complement and help fuel the Drupal project, and that help Drupal reach its full potential. It is why I started Acquia to begin with, and our Series B investment doesn't change that vision. Expect us to continue to give back to the Drupal community through code, by organizing sprints, through attending and sponsoring events, and more.

Last, the new funding means that I can continue to follow my heart, directing my time, resources and passion toward Drupal and the many people it touches. I have found a joy in participating in Open Source and doing start-ups that I have not found in academia, and that I likely wouldn't have found as a programmer at a local bank. ;)

I'm writing this blog post in San Jose where I'm attending the annual OSCON conference to meet and work with people in the Drupal community, and to educate people about Drupal. It is on days like today that I am reminded of how lucky I am, and of what both Drupal and Acquia enable me to do.

Comments

Tom Geller (not verified):

I suspect the second round got this much attention because -- let's face it -- lots of firms get a first round, but their business doesn't prove itself well enough to get the second. (I'd be interested in seeing statistics on this, actually.) The first round is a guess; the second is a confirmation.

Congrats! I'm especially looking forward to Gardens.

July 21, 2009 - 18:03
Robert Douglass (not verified):

The thing that excites me the most about round 2 is that a LOT of round 1 was spent incognito and building basic structures needed to run the company. We burned a fair bit of money before anybody saw our first product. With round 2 we're hitting the ground running, and from the very first $ we spend it will be towards visible products and community contributions that will make real differences in the way people use, think, and talk about Drupal.

July 21, 2009 - 18:29
Ryan (not verified):

Congratulations, Dries et al! I look forward to seeing how you put the money to good use. : )

July 21, 2009 - 18:48
Caleb G (not verified):

Congratulations on your second round efforts. It's a testament to the promise of things to come for Drupal, Acquia, and all the people across the world who are leveraging Drupal for their own purposes. Drupal's arc is one that is still very early in its ascent!

July 21, 2009 - 19:44
Itkovian (not verified):

Congratulations! That people are willing to keep the level of funding as high, means they are pretty exited about what you are doing, imo. And of course, that they will get a bang for their buck. Great work!

July 21, 2009 - 21:37
Dave Terry (not verified):

Congratulations to the Acquia team on a well-deserved accomplishment. This certainly gives us all in the Drupal community validation that you're headed in the right direction (especially considering how VCs are being as scrupulous as ever with their dollars). I had not caught wind of the announcement before putting this post out, but hope to see continued efforts on the marketing front.

http://www.mediacurrent.com/blogs/why-marketing-drupal-critical

All the best,

Dave
Mediacurrent

July 21, 2009 - 22:35
Jordi BufĂ­ (not verified):

Congratulations!

July 22, 2009 - 09:03
stodge (not verified):

Repeat venture funding confuses me. At what point do businesses plan on becoming self-sustaining and profitable? Guess this question is for Acquia too. I'm really, really happy to see a Drupal based company getting second round funding, but what happens if the funding dries up (no pun intended!)?

July 22, 2009 - 13:51
Robert Douglass (not verified):

When do we become self-sustaining and profitable? As soon as possible :D

With over 200 customers, we would be able to continue operations without extra funding. We wouldn't be able to grow and aggressively create new and game-changing products, though. Thus the choice of whether to seek venture capital or to live on current revenues is a choice of being small and self-sufficient, or the ability to get bigger and move faster. Since Drupal is still working to claim its rightful place as a dominant platform there is more advantage in getting bigger/moving faster as it allows us to be more bold and ambitious in our planning.

(I'm not a decision maker in Acquia - these are my opinions and understandings only)

July 22, 2009 - 20:19

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