Yext Inc., which helps businesses manage information on websites such as Yelp Inc. and Facebook Inc., has raised $50 million in funding that values it at $525 million, according to people with knowledge of the matter.
The financing for the New York-based startup was led by Insight Venture Partners and included existing investors Marker LLC, Institutional Venture Partners and Sutter Hill Ventures. Yext, which has raised a total of $116 million, was last valued at $270 million in a 2012 funding.
Yext’s decision to take private funding follows turbulence for business software companies in the public market. Marketo Inc., which makes software to automate marketing, is down 40 percent so far this year. Cloud-storage provider Box Inc. is waiting until market conditions improve to hold an initial public offering , people familiar with the situation have said.
“You raise money when you’re in a position of strength, in order to be sustainable for the long run,” Howard Lerman, chief executive officer of Yext, said in an interview.
A Yext representative declined to comment on the company’s valuation.
Yext plans to use the new capital to expand in Canada, Germany, the U.K. and Australia, as well as to develop more products to generate profits by 2015, Lerman said. The company, which plans to go public at some point, projects revenue of $55 million this year, up from $34 million last year.
Yext, which introduced its technology in 2011, lets businesses store their data in one place and automatically send any updates to many websites. That means if a store’s hours or address changes, the owner doesn’t have to manually input the information into multiple pages. Yext makes money by charging customers for the software that syncs up their data across websites.
To contact the editors responsible for this story: Pui-Wing Tam at email@example.com Ben Livesey