IContact, a rapidly growing provider of email marketing software that says it is unprofitable by design so it can continue to invest in its business,
has raised $5 million in venture fundsing from North Atlantic Capital. The company says it isn't not too worried about the impact of an economic slowdown.
"We'll probably do one more round in the first quarter of 2009, for $10 million," company spokesman Chuck Hester says confidently, adding that unlike so many businesses that are struggling to grow revenues, "It has been the opposite for us."
"In times like these, companies need to stay in touch with their customers," he says. iContact, formed in 2003, last year raised $5.25 million from Updata Partners in a Series A round, offers companies an inexpensive way to reach their customers and promote their products, Hester says. Although the company does not say how close it is to profitability, it says it will generate estimated sales this year of $15 million. Over the past eight months, as the economy went south, iContact grew its customer base by 10,000 to a current total of about 35,000. -- Andrea Orr
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