Squarespace, the popular web publishing platform, has raised $38.5 million in a first round of funding led by Index Ventures and Accel Partners. This is the first outside investment for Squarespace, which was started seven years ago and has been profitable since its first year in business. Founder Anthony Casalena says that won’t change, but the new cash will let the company be “much more aggressive” in building out its platform, which is currently used by “tens of thousands” of websites and blogs.
Squarespace charges $8 a month for a basic package, which includes one gigabyte of storage and more than 60 “professional designed” website templates users can choose from. The company also has more expensive packages geared for businesses, which include additional storage and features. It competes with offerings from both Automattic’s WordPress and Six Apart’s TypePad. Both of those companies have raised their own outside rounds.
The company didn’t provide us with a revenue figure, but in 2009, when it made Inc.’s list of the fastest-growing private businesses in America, it said it had generated $2.2 million in sales in 2008, up from $270,000 three years before. In a blog post earlier this year, Casalena said the company’s customer base had doubled in size over the previous year.
In addition to Index and Accel, Getty Images CEO Jonathan Klein also participated in the round. Klein, Index’s Dominique Vidal, and Accel’s Andrew Braccia are all joining Squarespace’s board.