Moz Announces $10 Million Financing Round to Build on Momentum of New Products

Posted by SarahBird

Greetings, Moz Community!

We’ve been very busy at Moz. In keeping with my tradition, I’ll tell you what we’ve been up to in excruciating detail in my upcoming 2015 Year in Review post (next week).

But first, some big news! Moz closed a $10 million Series C round of financing yesterday. We’ve got great VC partners in Foundry Group and they are ponying up the entire round.

Unlike Jack Donaghy, my leadership mentor, I’m buzzing with excitement. I have ambitious goals for Moz and it feels fantastic to get more support on our journey.

[The Aspiration]

The fundamental relationship between organizations and their current and potential customers is changing. New marketing disciplines are emerging to take advantage of exciting changes in how we learn, communicate, make friends, and conduct business. Moz was founded to help marketers capitalize on these shifts.

We are helping people understand and grow their digital influence, and using ours to spread TAGFEE. We’re helping organizations transform how they market to be more Transparent, Authentic, Generous, Fun, Empathetic, and Exceptional. People have higher expectations about how businesses will interact with them, and less patience for dated and inauthentic approaches.

My dream is that Moz will be a force for good in marketing and in our communities. I’m passionate not just about what we do, but about how we do it. And I’ve got great investors, like Foundry, who feel the same.

We want to build beautiful software that customers love and that consistently delivers value. We want to be an inclusive place that helps you learn and build something greater than you can build alone. We also want to share what we have with the communities around us. After all, we’re all in this together, one way or another.

[The Struggle]

We’ve soared and stumbled along the way. Sometimes within the same day. It’s exhausting and exhilarating simultaneously. Entrepreneurship is not for the faint of heart.

Late 2013 and early 2014, in particular, tested our mettle. We struggled through a brutal product launch and a bunch of scaling challenges. We made mistakes large and small, a few of which we’re still working to resolve.

In the immortal words of Jack Donaghy, management legend, “Business doesn’t get me down; Business gets me off.” We tortured ourselves for lessons, questioned and gave up old dogmas, and began transforming ourselves into an even greater company.

[The Transformation]

At the time of our Series B, we had a single SAAS product and an API. We ended 2015 with a portfolio of FIVE products and another big project on the way. In 2015, we invested in building new products, new engineering platforms, and retiring tech debt. We’re not slowing down in 2016. We’re building on our momentum.

Moz Local growth is burning up!

Moz Local makes it fun and painless for brick-and-mortar businesses in the US and UK to grow their digital influence. After a mere 21 months, Moz Local has already generated an impressive $5.7 million USD in its lifetime (cash, not revenue). Moz Local revenue grew over 400% last year alone! We’re currently helping over 60,000 business locations manage their information across the web.

In November 2015, we released a major update to Moz Local that shows how a business location is performing over time and compared to its competitors. We’re also making it easier for businesses to manage their Google My Business profiles. The new features are in beta now and will be available for purchase in February.

If you haven’t played with Moz Local yet, start by checking to see if your business’s information is accurate.

Introducing our newest addition: Moz Content

We’re hoping to replicate Moz Local’s success by launching more standalone tools.

For example, our recently launched Moz Content helps marketers understand and improve their content marketing efforts. This product is powered by a proprietary Moz API to identify keywords and topics interesting to their audience. We’re still very early in this newborn product lifecycle and we’re shipping updates regularly. Since December, over 28,500 marketers have performed ~22,000 content audits and 44,000+ content searches. Usage continues to climb as we add features and polish to our brand-new product.

If you haven’t yet, give Moz Content a whirl.

[The Money]

This round of financing allows us to build on the momentum we’ve started by growing our new product lines, and kicking Moz Pro and Moz Local up a notch.

In the year ahead, we’ll use the money for growth initiatives, like marketing, experimenting our way to product/market fit, and adding sales and account management folks.

If you’re really into the funding details…

Our pre-money valuation was $120 million. We did about $38 million in revenue for 2015. For reference, our 2012 Series B pre-money was $75 million. We’ve carried forward the same basic terms from the last round (1x liquidation and non-participating preferred). Foundry is contributing the entire $10 million. (Thanks, Foundry!)

Brad Feld, whom we love, is stepping off of the board, and Seth Levine (also from Foundry) is stepping on. I’m getting to know Seth and I’ve enjoyed all my interactions with him. He’s TAGFEE, deeply experienced, and passionate about Moz. He’ll be a great addition to the board. I like to think of this as gaining Seth, rather than losing Brad; they are both still on Team Moz.

Thanks for your support!

I want Moz to be a company that customers and employees love. I want to create something lasting and meaningful.

We have an ambitious mission. We help organizations transform the way they market to match how people want to engage, learn, and shop. Although I’ve been working on it since 2007, we’ve still got a long way to go, because the target is always moving. Happily, we’re invigorated by big challenges.

We’ve got strong momentum heading into 2016, and I appreciate Foundry’s continued support. Moz is an exceptional company, and we plan on keeping it that way.

I’m also grateful for this TAGFEE team. Mozzers are optimistic, courageous, creative, and committed. We’ve been accused of being cult-like, and I’m proud of that. And thank you to everyone in the Moz community for cheering us on. We endeavor to serve you.

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