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Constant Contact Announces $15 Million in Funding; Greylock Partners Joins Current Investors to Fund Growth Opportunities.


WALTHAM, Mass. -- Constant Contact(R) (www.constantcontact.com), the leading email marketing service for small businesses, associations, and nonprofits, today announced that it is closing a $15 million round of venture capital- led financing. This round of funding is being led by new investor, Greylock Partners, who committed $10 million. An additional $5 million is being provided by the Company's existing investors, including Commonwealth Capital Ventures, Hudson Ventures, Longworth Venture Partners, and Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite.  Venture Partners. Constant Contact will use the proceeds to fund its current and future growth opportunities.

Launched in 1998, Constant Contact helps small businesses and organizations build lasting customer relationships through professional email communications. Using the web-based ASP solution, Constant Contact's current 65,000 customers - from retail, restaurants, and spas to business services, consultants, nonprofits, and associations - can create and send professional email newsletters, announcements, promotions, and more to build customer loyalty and generate repeat business.

"Our phenomenal growth in the past few years has shown the important role email marketing plays in the growth and success of thousands of small businesses and organizations across the U.S.," said Gail Goodman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Constant Contact. "While we have been operating cash flow Operating cash flow

Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.
 positive for the past two years, this additional capital provides us a tremendous opportunity to gain significant market share and expand our reach, given the readiness of the small business market."

"Given the size of the small business market - more than 25.8 million small businesses in the U.S. alone - there is a huge opportunity for companies that can effectively reach this market," said Bill Kaiser, partner, Greylock Partners. "Constant Contact has successfully reached and impacted thousands of small businesses and organizations and this is reflected in their rapid growth."

With more than 65,000 customers today, Constant Contact has achieved significant growth in recent years. In 2005, Constant Contact doubled its customer base from 25,000 to 50,000 and saw an 84 percent increase in revenue. In addition, the Company experienced a two-year revenue growth of 231 percent between 2003 and 2005. To support this current and future growth, Constant Contact plans to hire an additional 50 people in 2006, bringing the total workforce to more than 200.

About Constant Contact

With more than 65,000 customers, Constant Contact(R) is the leading email marketing service for small businesses, associations, and nonprofits. Constant Contact is a web-based email Web-based email or webmail is a term referring to an e-mail service intended to be primarily accessed via a web browser, as opposed to through an application such as Microsoft Outlook or Outlook Express, Mozilla's Thunderbird or Apple's Mail.  marketing solution that enables small organizations to easily create and send professional email newsletters, promotions, announcements and more with no technical expertise required. Designed and priced for SMBs, Constant Contact is affordable, easy-to-use and includes a free 60-day trial at: www.constantcontact.com. The service is marketed through over 1,500 Business Partners and more than 100 marquee channel partners including American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses.  OPEN, AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Corel, FTD FTD Financial Times Deutschland (German sister newspaper of the Financial Times)
FTD Frontotemporal Dementia
FTD Fitted
FTD Federal Tax Deposit
FTD Flight Training Device
FTD Fastest Time of the Day
, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Interland, Network Solutions, Register.com, Website Pros and Yahoo Search Marketing See Yahoo! Search Marketing. . Constant Contact is a founding member of the Email Service See Internet e-mail service.  Provider Coalition (ESPC ESPC Energy Savings Performance Contract
ESPC Equality State Policy Center
ESPC Edinburgh Solicitors Property Centre (Scotland)
ESPC E-Mail Service Provider Coalition
ESPC European Space Power Conference
), a group formed to fight spam while protecting the delivery of legitimate email. Constant Contact is funded by Greylock Partners, Morgan Stanley Venture Partners, Commonwealth Capital Ventures, Longworth Venture Partners, and Hudson Ventures. For more information, please call 781-472-8100.

About Greylock Partners

Founded in 1965, Greylock Partners is one of the world's leading venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed
5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1]
. Over the past 41 years, Greylock has funded and helped build several hundred successful companies. The Greylock approach uniquely puts the entrepreneur first, with Greylock working as an invited guest in a highly supportive yet consultative way to help entrepreneurs build market-leading companies. Companies Greylock has funded include Ascend Communications, CheckFree, Continental Cable, Decru, DoubleClick, Internet Security Systems, Ikanos, Legato, Millennium Pharmaceuticals, Openwave, Red Hat, RightNow Technologies, Tellabs, Trilogy and Wily Technology. Greylock's offices are located in the Boston area and in Silicon Valley. For more information, please visit www.greylock.com.

Roving, Roving Software, Constant Contact, the Constant Contact Logo, Do-It-Yourself Email Marketing, The smart way to reach your customers, Email Marketing Made Easy, Email Marketing 101, Email Marketing Diva, Email Marketing Hints & Tips, and SafeUnsubscribe are trademarks or service marks or registered trademarks or service marks of Roving Software Incorporated d/b/a Constant Contact. All other company and product names may be trademarks or service marks of their respective owners.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Comment:Constant Contact Announces $15 Million in Funding; Greylock Partners Joins Current Investors to Fund Growth Opportunities.
Publication:Business Wire
Geographic Code:1USA
Date:Jun 30, 2006
Words:708
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