DocuSign gets $85 million more in investments
The electronic signature company has raised $210 million in funding overall. It plans to use the new infusion to support growth and expansion into international markets.
Seattle Times business reporter
Electronic-signature company DocuSign has raised an additional $85 million in funding, almost doubling last year’s financing round and bringing total funding to $210 million, the company announced Tuesday.
DocuSign, founded in Seattle but now headquartered in San Francisco, offers a cloud-based service that lets customers send documents to recipients, who can electronically sign and return them, rather than having to print and scan the documents.
The new money will be used for continued growth and international expansion, Chief Financial Officer Mike Dinsdale said in an interview.
“Currently, only 5 percent of our business is international,” he said. “But we are opening an office in Brazil and we are looking to expand into Japan this year sometime. There is a lot of room for growth — they are doing the exact same transactions as we do here in the U.S.”
This round of funding was led by undisclosed institutional investors. As DocuSign gets closer to a potential initial public offering, Dinsdale said the company depends less on venture investors. Some past investors, including Google Ventures, SAP Ventures, Comcast Ventures and Ignition Partners, also participated.
“All the people we focused on in this round were people who believe in this company and can see it 10 years down the line,” Dinsdale said.
He would not expand on a timeline for an IPO except to say DocuSign is evaluating that possibility every couple quarters. He also declined to disclose the company’s valuation, but The Wall Street Journal reported it as $1.6 billion.
Since DocuSign was founded in 2003, it has expanded nationally and globally, adding an office in Chicago, London and Sydney, as well as moving its headquarters from Seattle to San Francisco in 2012. Of the current 700 employees, 350 are still in the Seattle office.
DocuSign saw widespread use initially in the real-estate world, and it is still the official electronic signature provider for the National Association of Realtors. But real estate has dropped to DocuSign’s third-largest customer, behind financial services and insurance, Dinsdale said.
With more than 95,000 companies as customers and 40 million users worldwide, revenues are growing at more than 70 percent year-over-year, Dinsdale said. He declined to disclose specific sales information, but said he expects the company to be at cash flow positive in the next couple years.
The company’s only real competitor is Adobe’s EchoSign, which Dinsdale said focuses more on the midmarket but is also strong in the insurance industry.
This round of funding follows February’s announcement of a partnership with Microsoft to bring DocuSign to more than 1 billion Microsoft Office users worldwide.
“We are becoming a verb. You think about people saying ‘Google it,’ and ‘FedEx it to me,’ and those roll off the tongue the same way,” Dinsdale said. “We are changing the way business is run globally and we are literally becoming a verb.”
Coral Garnick: 206-464-2422 or firstname.lastname@example.org. On Twitter @coralgarnick