Press Releases | September 10, 2014
Elastic Path Raises CDN$5.35-Million led by BDC Venture Capital
Company reinventing ecommerce for today’s customer-obsessed global brands
Vancouver, B.C. (Sept. 10, 2014) – Elastic Path Software Inc., an ecommerce company helping the world’s biggest brands generate more revenue, announced it has secured CDN$5.35-million in equity investments led by BDC Venture Capital IT Fund, with participation from Yaletown Venture Partners and individual investors. The company will use the funds to continue driving innovation for its patent-pending enterprise commerce products.
Mobile and Millennials Shaping New “Experience-Driven” Commerce
“The last few years have seen a real shift from ecommerce to experience-driven commerce,” said Harry Chemko, CEO of Elastic Path. “Brands have been caught off guard with the buying power of Millennials, how they shop and use technology, and how quickly they will switch to a competitor if they have a poor experience. Today, empowered consumers have high expectations when it comes to shopping. They want brands to tell engaging stories. They expect brands to iterate highly personalized offers fast, and in every setting, products must be easily added to the shopping cart. Our platform enables all this and more, influencing the most fickle of customers to stay loyal and spend more.”
Trillions at Stake: E-Commerce Platforms Top Technology Shopping Lists
According to Forrester Research, e-commerce sales in North America alone are expected to top US$370-billion by 2017. However, purchases influenced by the web or a digital experience will account for a startling US$1.8-trillion. With mobile commerce growing year over year by 48% and Millennials projected to make up 75% of the workforce by 2025 , ecommerce platforms, content management systems and mobile technology are at the top of the technology shopping lists for many chief technology officers and chief marketing officers.
Technology Power in the Hands of Marketers
In 2013, Elastic Path helped 200 customers generate US$6.5-billion in sales using its technologies. The company’s platform unlocks powerful ecommerce capabilities previously in the domain of the IT department and puts it in the hands of marketers, allowing merchandising offers, split testing and bundling to be created in minutes instead of months, without impacting the security, data and scalability of the backend systems.
“Unlike the larger, legacy ecommerce providers, Elastic Path’s platform was built from the ground up to integrate seamlessly with core business functions that previously existed in silos,” said Andrew Lugsdin, partner at BDC Venture Capital IT Fund. “This allows marketing to have a single view of the customer, make highly personalized offers and have that offer automatically reflected in sales, accounting, customer service and logistics systems. No one else has been able to do this as effectively and elegantly.”
Top Industry Recognition
Earlier this year, Elastic Path was recognized for the third consecutive year by Gartner as a sample vendor for Digital Commerce and Commerce Experiences in its Hype Cycle, Marketing report (July 2014) and in the IDC MarketScape: Worldwide Digital Commerce 2014 vendor assessment report (August 2014). IDC conducted a rigorous analysis of top vendors in the global digital commerce market, and positioned Elastic Path as a major player based on both its capabilities and strategy.
About BDC Venture Capital IT Fund
The BDC Venture Capital IT Fund is a $150-million fund with offices in Vancouver, Toronto, Ottawa, Montreal and Calgary, with strong links to Silicon Valley. The investment focus is on early stage, high growth companies with passionate and visionary entrepreneurs in the Enterprise, Internet and Mobile sectors. The fund has invested in many successful companies including Radian6 (acquired by Salesforce), Opalis (acquired by Microsoft), Bycast (acquired by NetApp), Q1 Labs (acquired by IBM), and Layer 7 (acquired by CA Technologies). The IT Fund is part of BDC Venture Capital, which has more than $1 billion under management and more than 25 years of investing experience in IT, health and energy/clean technology companies, as well as venture funds. Find out more at www.bdc.ca/vcitfund or follow us on Twitter
About Yaletown Venture Partners
Yaletown Venture Partners invests in emerging-growth companies in Canada and US Northwest that develop technologies for the intelligent enterprise and sustainable infrastructure. With offices in Vancouver, Calgary and Seattle, Yaletown is led by a team that brings together industry relationships and more than 120 years collective experience building and financing technology companies. Founded in 2002, Yaletown is backed by leading institutional investors and a network of successful technology entrepreneurs, executives, and angel investors and has $140M under management. Find out more about Yaletown and our portfolio of companies at www.yaletown.com.
About Elastic Path
Elastic Path helps the world’s biggest brands generate billions in revenue using its ecommerce technologies. The company’s software also seamlessly brings omnichannel ecommerce, subscriptions, and enhanced connectivity right into Adobe Experience Manager, the leading content management platform – enabling companies to deliver a complete customer experience that maximizes engagement and conversion. Elastic Path has more than 200 customers, including Google, Virgin Media, LVMH, Western Union, TeliaSonera, Kiabi, and Motability. The company has 150 employees in Vancouver, Canada and the UK. For more information, visit www.elasticpath.com/company/about-us
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