SurveyMonkey Raises $250 Million in Funding to Fuel Deals

SurveyMonkey Inc., an online questionnaire service, raised $250 million in funding in an investment round that will help it pursue acquisitions and let employees and existing shareholders sell some of their stock.

The financing values the company at about $2 billion, according to a person with knowledge of the matter, who asked not to be named because the number isn’t being made public. New participants include institutional funds and accounts managed by T. Rowe Price Group Inc., Morgan Stanley and Baillie Gifford & Co., with previous investors Tiger Global Management LLC, Google Capital and SurveyMonkey Chief Executive Officer Dave Goldberg also taking part, according to a statement today.

The company will spend $75 million on acquisitions and use the remaining $175 million to buy back shares from employees and investors, Goldberg said in an interview. He declined to comment on the company’s initial public offerings plans.

SurveyMonkey, founded in 1999, helps businesses gauge customer satisfaction, schedule events and conduct employee reviews through online surveys. The new funding will help the company step up acquisitions to expand its corporate business, Goldberg said today in an interview.

“We are now looking at other opportunities in the enterprise space,” Goldberg said. “We are used by every Fortune 500 company. We think there’s more opportunities for us to sell directly to companies.”

The Wall Street Journal earlier reported SurveyMonkey’s valuation as close to $2 billion.

Tiered Pricing

The Palo Alto, California-based company, which has been profitable since its foundation, has a free product for asking as many as 10 questions, as well as three tiers of paid subscriptions costing $228 to $780 a year.

An investor group led by Spectrum Equity Investors acquired SurveyMonkey in 2009 and appointed Goldberg CEO. The company today said it has more than 20 million customers, and logs more than 2 million survey responses daily.

In January 2013, the company raised almost $800 million at a valuation of about $1.35 billion, in a funding round led by Goldberg and Tiger Global.

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