DocuSign Raises Another $47.5M
DocuSign, a well-funded provider of software that captures and transmits electronic signatures, has raised nearly $47.5 million in additional financing to pay for continued growth.
The investment, which puts total financing in DocuSign above $100 million, was led by Kleiner Perkins Caufield & Byers. Accel Partners, Comcast Ventures, and SAP Ventures also invested in the round, along with an unnamed “global institutional investor.” Kleiner Perkins investment partner Mary Meeker is joining the company’s board.
Previous investors include Ignition Partners, Frazier Technology Ventures, Scale Partners, and Sigma Partners.
DocuSign’s software is used by businesses or governments that need to have secure signatures on documents: Insurers, law enforcement, law firms, sales teams, and more. The company claims to be the leader in its market, saying that its products capture “seven of 10 electronic signatures.”
The company doesn’t report its revenues, but did say last year that it had recorded three straight years of revenue growth. DocuSign now says it has 1.4 million “paying users,” including companies like American Airlines, Cisco, and Toyota.
DocuSign, founded in 2004, also now lists its headquarters as San Francisco—the company had been based in Seattle, where it still has offices. That seems at least partly tied to last year’s hiring of Keith Krach as CEO. Krach, a San Francisco Bay Area entrepreneur, had previously been DocuSign’s chairman.
DocuSign is an interesting case, having run through three CEOs in less than two years. Krach replaced Steve King, who took the top job in January 2010. King had replaced Matthew Schiltz. That obviously gave the impression that something was not quite right at DocuSign, but this fresh investment shows more people banking on the company than ever before.
The sector is competitive, with software behemoth Adobe acquiring competitor EchoSign last summer. When it put Krach in the CEO’s job, DocuSign noted that he’d taken previous company Ariba public and would help DocuSign navigate higher growth.
DocuSign had previously raised in the neighborhood of $60 million over its lifespan, including a $27 million round in December 2010. The new SEC filing from DocuSign indicates the current round could expand to about $56 million. That’s a lot of money for a Seattle-bred company, although competing in San Francisco turns things up a notch.