Open source marketing automation platform Mautic picks up $5M Series A and a new CEO from Applause
Following a $600,000 seed investment earlier this year, G20 Ventures and Underscore.VC have redoubled their support for Mautic by adding another $5 million to close the Series A funding round, announced on Tuesday. The announcement came with the news that the company will be getting a new CEO a the end of 2016 in the shape of Matt Johnston, current Chief Marketing and Strategy Officer at Applause.
Mautic is a marketing automation platform with an open source twist. Marketing automation platforms are used by marketers to simplify the process of creating and running marketing campaigns. Incoming CEO Matt Johnston told Geektime that such platforms allow marketers to “build personalized website flows” based on visitors’ behavior, “launch customised or progressive website landing pages”, “create tailored automated” email campaigns, and nurture leads “intelligently” to generate more sales.
Mautic claims that their advantage over incumbent competitors like Eloqua, Marketo and HubSpot is the fact that their tech is open source. Cofounder and CTO David Hurley explained to Geektime that at just over two years old, Mautic’s open source project does not “carry around massive legacy code” of 10+ year old competitors who as a result face speed and “compatibility issues”. He says that this allows Mautic to integrate new features much quicker, with 12 major releases a year, compared to 2. Their open architecture also allows for integrating “with other parts of the marketing stack more easily and readily”, where these integrations can come “from Mautic, from the customer who wants it, or from the community at large.”
The increased investment was described in a company statement as being “based upon significant traction with customers and Mautic’s open source community.” The funds themselves will be dedicated to growing the engineering team and product suite, as well as investing in broadening support for the “rapidly growing customer base”, and programs for their open source community. Bill Wiberg, co-founder of G20 Ventures, noted that there has been a “real lack of innovation in the enterprise segment” of what he terms the “massive” marketing automation market. He continued, adding that, “Mautic’s open source approach has enabled them to rapidly mature an enterprise-grade solution, and leap ahead of the incumbents in terms of functionality and pace of innovation.”
Incoming CEO Matt Johnston will join David Hurley on the founding team, following his move from software testing services platform Applause at the end of 2016. Founded in 2007, Applause has raised over $115 million in funding to date. Johnston’s role at the company involved leading the company’s marketing, community management, partner channel, and company strategy. “Adding Matt, with his track record of growing community-driven startups into major disruptive forces, is a great win for Mautic,” said co-founder and CTO David Hurley.
Mautic is headquartered in Boston, with an office in Raleigh. Founded in 2014 by David Hurley as an open source project, the company launched its major enterprise product earlier in 2016. The company reports upwards of 50,000 downloads of the open source version, over 20,000 companies using the free hosted version, and thousands of contributing developers.
The numbers sound good, and so does the concept. The test for Mautic will be to what extent their open source advantages will allow them to better the competition at scale.