HootSuite Gets $165 Million to Expand Social-Media ToolsDouglas MacMillan
HootSuite Media Inc., a developer of software used to manage social-networking activity, has raised $165 million from investors in one of the largest venture capital deals in North America this year.
Insight Venture Partners led the second financing round, which also included Accel Partners and OMERS Ventures, Vancouver-based HootSuite said in a statement today. Terms of the investment weren’t disclosed.
HootSuite plans to use the funds to add more than 100 employees in the next six months and expand to new markets including Asia and Latin America, Chief Executive Officer Ryan Holmes said in an interview. The investment will also help HootSuite build its business without seeking funds via an initial public offering, he said.
“I personally would love to take this company to an acquisition or an IPO,” Holmes said. “That being said, my goal right now is building an amazing business. I think this raise takes some of that pressure off.”
The company is also in talks to make at least two acquisitions, Holmes said, declining to name the targets.
HootSuite has almost doubled in size, to 300 employees, in the past year as it adds tools to help businesses manage their presence on Facebook Inc., Twitter Inc. and other social sites.
The financing is the third-biggest venture deal for a North American technology company this year, behind the $200 million investment in mobile-device management company AirWatch LLC and online bulletin board Pinterest Inc., according to data compiled by Bloomberg.