Townsquared Funding Reaches $16.4 Million with Series B
Sierra Ventures and Intuit lead Townsquared funding
We are excited to announce we’ve secured $11.05 million round of Series B funding, especially because this funding is led by top-tier international venture capital firm Sierra Ventures and Intuit, the leading provider of business and financial management solutions for small businesses. Additional investors include Jocelyn Goldfein, former Engineering Director at Facebook and former VP of Engineering at VMware, and Pravin Madhani, Angel Investor. Our Series B round brings the total amount of funding we’ve received to $16.4 million.
We are thrilled and proud to have Tim Guleri joining David Hornik of August Capital, Co-Founders Rohit Prakash and Nipul Patel on Townsquared’s Board of Directors. Tim brings his extensive experience with startups and strategic partnerships and will help us navigate development and strategic planning.
We’ve established a strong national presence since first launching the online community, with a 115 percent increase in membership over the last year, across nearly 500 small business neighborhoods. And this September, we’re officially expanding that community to the unique neighborhoods of Portland, Oregon.
A portion of the new Townsquared funding is earmarked for expanding into five to ten additional cities across the country, like Boston, Chicago, Austin, D.C., Los Angeles, Miami, and more. As Rohit, our CEO noted, “The focus of Townsquared has always been on hyper-locality and achieving density within a market. This is why we’ve strategically selected our launch markets and focused on expansion within them rather than launching quickly into new cities.”
We’ll continue to focus on hyper-locality, devoting resources to expanding into additional neighborhoods in each city with an emphasis on community involvement. And, of course, we’ll continue to partner with local police departments, merchants’ associations, city small business offices, and chambers of commerce to support cross-information sharing, and community safety.
Sierra Ventures was a natural partnership for us because they value our mission to shift economic forces in favor of small and local businesses. “We decided to invest in Townsquared because of the company’s unique capabilities to connect and help small businesses across the world,” said Tim Guleri, Managing Director at Sierra Ventures. “We are always looking for large markets where software can create disruptions and entrepreneurs who execute to such opportunities. The multibillion dollar small business market has tremendous opportunity yet is lacking a common communication and resource platform.”
We’re especially excited to join forces with Intuit, one of the few companies that has really changed how small businesses operate for the better. As Andrew Westergren, Intuit’s Chief Strategy and Corporate Development Officer explained, “Our support for Townsquared is rooted in our common goal of helping small businesses succeed in their local community. At Intuit we help 4.5 million small businesses and believe the power of the network effect helps them win together. Townsquared is continuing to show success in providing small businesses with the myriad of resources they need to thrive and better their local communities.”
“In some of our neighborhoods,” Rohit explained, “Townsquared has as much as 70 percent of the local merchant population participating, as well as local government, police departments and business organizations. Our Series B funding round and the addition of these respected investors, will help us continue this success as we expand nation-wide and help the small businesses that play an important role in our communities and the nation’s economy.”
But the celebrations don’t stop with the Townsquared funding news! We’re also delighted to announce our new VP of Product, Andy Bryson. Andy is formerly the Director of Product Management and Growth at SurveyMonkey, where he built their Growth team, leading viral growth initiatives that resulted in the doubling of users to over 30 million. Andy was also responsible for international SEO as well as infrastructure and growth initiatives that resulted in over 40 percent international business growth. Here at Townsquared, Andy will lead the product vision and definition of our online and mobile community. He’ll oversee a team of product managers, designers, and data scientists that aim to help small business owners across the country connect, collaborate and share resources.
The funding will keep us expanding as a team. We’re planning to grow by 60 percent over the next year, with additional hiring planned in engineering, product, and city management. Check out our open positions!
Thousands of small businesses across the country have joined the online network to connect and collaborate with fellow small business owners. There are bustling Townsquared communities in San Francisco, Oakland, New York, and Seattle.