Helping entrepreneurs build significant, built-to-last businesses is what we’re all about here at Revolution. That’s what fires us up to come to work every day. Our goal is to invest in big, disruptive ideas that challenge incumbents. We particularly like businesses that level the playing field, empowering millions to do things that otherwise were out of reach.
That’s why this morning, we’re proud to announce Revolution Growth has invested $40 mllion (the fund’s largest investment to date) in Bigcommerce, a global leader in e-commerce.
In just a few short years, Eddie Machaalani, Mitchell Harper, and their team have signed up 35,000 online stores in 65 countries and processed $2 billion in transactions. But that’s barely scratching the surface given the huge potential market. The new funding will enable Bigcommerce to accelerate its growth, including building out their platform, expanding into new verticals and international markets, increasing marketing, and establishing new strategic partnerships.
We like the Bigcommerce recurring revenue subscription model, but are even more impressed with their very high renewal rates and satisfaction scores. (Their Net Promoter Score is one of the highest we’ve ever seen.) But we also like the fact that they enable any entrepreneur, in any industry, located anywhere, to compete with the big e-commerce players. The Bigcommerce platform is robust and scalable, but also easy to use. And it’s inexpensive, as the cost starts at $25 a month. By offering startups Amazon-like e-commerce capabilities, in hours – not months or years – Bigcommerce makes it easy for young businesses with fast growth potential to quickly compete alongside Fortune 500 companies.
For Ted Leonsis, Donn Davis, and myself, Bigcommerce has us feeling a bit nostalgic. America Online helped pave the way for e-commerce – we were part of constructing that original foundation that revolutionized how goods and services were purchased and sold over the Internet. (Indeed, I remember attending conferences in the late 1980s and early 1990s where people vigorously debated whether consumers would ever trust the Internet enough to enter their credit card information!) Through Bigcommerce, we are helping to continue that revolution, only this time we’re leveling the playing field so that any entrepreneur with a smart idea can quickly and inexpensively get to market and compete on the global stage.
What’s more, Bigcommerce is headquartered in Austin, Texas and Sydney, Australia. Our previous Revolution Growth investments in Optoro, Lolly Wolly Doodle, FedBid, Echo360, and Resonate have been in Virginia, North Carolina, or Maryland. We are putting our money where our mouth is, and finding great entrepreneurs outside of Silicon Valley, New York and Boston – where most investors tend to focus. This “Rise of the Rest” trend – due to technological innovation and public policy changes – is helping to usher in job creation, innovation, and economic growth in regions across the country. The Bigcommerce platform will make it even easier for startups anywhere to take root.
I’m excited about Bigcommerce and what it will mean for entrepreneurs across this country and around the world. I’m proud of Mitch, Eddie, and the team for the progress achieved to date. And I’m fired up about what’s possible as we join forces moving forward.