Digital marketing platform Vendasta has raised C$20 million (roughly US$15 million) in new financing led by Colorado-based VC firm Foundry. Vendasta says a key purpose for the new financing is to fuel new acquisitions.
Vendasta has a robust recent history of making acquisitions. In just the past two years alone, the company has acquired the adtech platform MatchCraft and scheduling software firm Calendar Hero. Plus Sales productivity firm Yesware and reviews management platform Broadly.
“Vendasta will continue to acquire software companies that help to build our product portfolio so that we can be a one-stop shop for SMBs and the companies that help SMBs select and implement their tech stack. The company started in sales and marketing software and has gradually been extending to different verticals,” Eric Clark, Vendasta’s Chief Corporate Development Officer told Localogy Insider.
Acquisition Criteria
Clark told us that Vendasta will focus on acquisitions that either add needed technology and/or customers. Vendasta works via a network of resellers. The Saskatchewan-based software company’s reseller network of agencies, media companies, managed services providers, and others currently numbers more than 60,000. This reseller network brings in more than 5.5 million SMB customers.
“Vendasta will continue building or buying software in order to be the only technology solution an SMB needs to run their business. We have a strong preference for acquiring companies with a substantial SMB customer base, offering products that complement our existing portfolio and can be easily resold to our current customers. We also prioritize companies that have established relationships with numerous channel partners, including agencies, media companies, telcos, MSPs, and more.”
As a result of its investment, Foundry Partner Brad Feld will join Vendasta’s board.
Feld added a little color to the acquisition angle. He believes Vendasta is in a target-rich environment.
“We’ve gotten to know Vendasta over the past year through their acquisition of two of our portfolio companies. We believe they have built the most compelling platform in the market for selling and delivering B2B software to SMBs,” Feld said in a statement.
“Today, there are thousands of B2B SaaS companies whose growth has slowed while they are sub-scale. We believe Vendasta is a natural consolidator of these companies.”
