Enterprise E-Commerce Leader Elastic Path Raises $10M in Growth Funding
Equity investment led by Yaletown Venture Partners and BDC Venture Capital IT Fund
Vancouver, B.C. (October 29, 2015) -- Elastic Path Software Inc., an enterprise commerce company helping the world’s biggest brands generate higher revenue through innovative omnichannel experiences, announced it has secured CDN$10 million funding led by Yaletown Venture Partners and the BDC Venture Capital IT Fund. The funds will be used to grow the company’s Software-as-a-Service revenues, deepen investment in partner channels and continue driving technology innovation for its recently patented commerce platform. To date, the company has helped their customers generate $40 billion in sales using its digital commerce technology.
E-Commerce Sales Continue To Rise: Spending on E-Commerce Technology Doubles
Today, online retailing is going through an unstoppable shift toward providing customers with true continuity in service, according to Harry Chemko, CEO of Elastic Path Software.
“Our customers are telling us that omnichannel service is no longer an option for doing business, it’s a requirement,” says Chemko. “This is forcing companies to rethink their current marketing and customer service strategies. Buyers want the ability to shop from one channel to the next and assume the brand will recognize their preferences and actions. It’s no longer about offline or online, in-store or e-commerce - it’s simply the new expectation of business, and commerce.”
According to eMarketer, ecommerce sales will hit 9.0% of total retail sales this holiday season, or $79.40 billion, up from 8.3% share last year. They also predict that by the end of 2016, 25.0% of all retail e-commerce sales in the US will take place via mobile devices.
To accommodate this ongoing rise in sales, companies are increasing their spending on e-commerce technology. According to Forrester Research, the spending will almost double from $1.2 billion in 2014 to just under $2.1 billion in 2019. On average, companies will upgrade their commerce platforms every five or six years through 2019, as opposed to seven years or more before 2014.
"Changing consumer preferences in online buying are forcing retailers to adopt new technologies in order to extract maximum value from their brands and sales channels,” says Mike Satterfield, general partner at Yaletown Venture Partners. “Elastic Path’s Commerce platform is winning customers because it enables e-commerce innovation including future integrations, while tying into a business’s legacy technology systems."
In the last year Elastic Path has focused on securing a number of key partnerships, primarily digital marketing agencies and enterprise systems integrators, to streamline its sales and marketing channels and provide technical support on a global basis.
“You can’t grow by doing everything yourself,” says Andrew Lugsdin, partner at BDC Venture Capital IT Fund. “Elastic Path has created a strong and viable partner ecosystem that will allow the company to scale, using less resources internally, yet having a laser-focused partner that generates results for each industry or vertical that makes sense to pursue."
About BDC Capital IT Venture 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 @BDC_Capital.
About Yaletown Venture Partners
Yaletown Venture Partners invests in emerging-growth sustainability innovation and intelligent enterprise technology companies in Canada and the US Pacific Northwest. With offices in Vancouver, Calgary and Seattle, Yaletown is led by a team that brings together industry relationships and more than 130 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. Find out more about Yaletown and our portfolio of companies at www.yaletown.com.
About Elastic Path
Elastic Path has helped the world’s biggest brands generate $40 billion in revenue with its patented ecommerce technologies. The company’s enterprise commerce software integrates seamlessly with marketing clouds and back-end systems to provide today’s demanding shoppers a highly personalized and unified buying experience – whether they shop online or offline, using desktop or mobile and reached through their email or social networks. Elastic Path leverages a strong partner network including Adobe, Amazon Web Services (AWS), MRM//McCANN, PwC, SapientNitro and more, to serve global customers who seek flexibility, agility, and innovation in their commerce transactions. Customers include DeVry, Garmin, Lifeway, LVMH, McGraw-Hill Education, Time Inc., Virgin Media, and Wine.com.br.