Comments on: Infusionsoft rakes in $54M to automate marketing for small businesses

By: Michael Babich (CEO of RocketStart.me)

Michael Babich (CEO of RocketStart.me) — Fri, 18 Jan 2013 19:38:21 +0000

Yep. Totally agree. We also focus on SOHO & SMB and create now a marketing platform. It is great market to enter.

By: Michael Babich (CEO of RocketStart.me)

Michael Babich (CEO of RocketStart.me) — Fri, 18 Jan 2013 19:31:30 +0000

Based on U.S. Census Bureau Data, WorldBank estimates and SMB Group estimates there are:

- SOHO (1-4 empl, no commercial location) – 136M worldwide / 16.5M in the US.
- Small (1-99 empl, commercial location) – 65M worldwide / 6.53M in the US.
- Medium (100-999 empl) – 705K worldwide / 99.9K in the US.

27M sounds a little overestimated.

By: brettfogle

brettfogle — Mon, 14 Jan 2013 07:09:12 +0000

What is also interesting is that 95% of their users that we talk to are frustrated and unhappy with InfusionSoft’s technology. It’s confusing, and has earned them the nickname ‘ConfusionSoft’ among users and potential users. So we have decided to enter the marketplace as a competitor for this reason.

By: Luc

Luc — Tue, 08 Jan 2013 05:12:59 +0000

Where are they getting the 27million small businesses? They might want to check the numbers again sounds a bit too high.

By: Barb Darrow

Barb Darrow — Mon, 07 Jan 2013 16:40:37 +0000

i don’t always believe stats but i do believe there are tens of millions of small businesses in this demographic (25 and fewer employees, $100K+ in annual revenue) so at least in terms of market target Infusionsoft is interesting. This is also a very large round of funding and i think VC interest in a company warrants an investment that big, it’s worth pointing out.

By: Jim

Jim — Mon, 07 Jan 2013 15:26:20 +0000

Here is why I find knowing about VC funding to be valuable.

I’m always looking for upcoming companies to invest in. VC funding can be an important indicator of companies intentions long term as many VC funded companies will ultimately try and go public. I put many of these companies on my watch list so if they look like they will have a good IPO I can be involved.

In looking for products for myself and my business VC funding can be an indication of potential life span of the product. No one wants to build their business around a product that won’t be around very long. A big influx of money like this in my opinion improves the odds that the company will be around for several more years and that they will continue to work on and support their product.

Also despite what you may think VC firms tend to expect some traditional performance when investing in a company. Your comment peaked my interest so I did a little research on Infusionsoft. A quick web search for “Infusionsoft revenue” shows $26 Million in revenue in 2011 and a search for “Infusionsoft customers” shows 8,000 customers in 2011 with 3000 new customers being added that year. I would assume that 2012 has been a similar if not better year given this investment.

By: Alan

Alan — Mon, 07 Jan 2013 13:12:05 +0000

You make it sound like fundraising is the objective, as opposed to customers. I’d be more impressed if Infusionsoft generated $1M in profit, grew revenue and customers by 200%, or any other true measurement of how their business was really doing. So what a PE group gives them money to do advertising. Yawn.