New Funding Announced For WordPress Parent Company
The parent company of WordPress, Automattic, has announced through a blog post by CEO Matt Mullenweg, that the company has managed to raise $160 million in investment funding to allow the company to grow and develop further.
This is the first investment that has been put into the company since 2008, and considering that WordPress powers around 20 percent of sites on the internet this is pretty astonishing in itself.
Matt Mullenweg said: “This is obviously a lot of money, especially considering everything we’ve done so far has been built on only about $12M of outside capital over the past 8 years.”
It was only last year that he said: “Automattic is healthy, generating cash, and already growing as fast as it can so there’s no need for the company to raise money directly — we’re not capital constrained.”
But he has now admitted that this statement was wrong: “I was wrong, but I didn’t realize it until I took on the CEO role in January. Things were and are going well, but there was an opportunity cost to how we were managing the company toward break-even, and we realized we could invest more into WordPress and our products to grow faster.
He added: “Also our cash position wasn’t going to be terribly strong especially after a number of infrastructure and product investments this and last year. So part of my 100-day plan as CEO was to figure out what new funding could look like and we found a great set of partners who believe in our vision for how the web should be and how we can scale into the opportunity ahead of us, though it ended up taking 110 days until the first close. (Our other main areas of focus have been improving mobile, a new version of WP.com, and Jetpack)
With the new investment comes renewed hope for the future of Automattic and for WordPress: “WordPress is in a market as competitive as it has ever been, especially on the proprietary and closed side. I believe WordPress will win, first and foremost, because of its community — the hundreds of core developers and large commercial companies, the tens of thousands of plugin and theme developers, and the millions of people who build beautiful things with WordPress every day.
“Automattic is here to support that community and invest the full strength of our resources to making WordPress a better product every day, bringing us closer to our shared mission of democratizing publishing. But a majority of the web isn’t on an open platform yet, and we have a lot of work ahead of us.”
The future for WordPress is looking more exciting than ever and all WordPress users will be waiting to see just what the people at Automattic can come up with next!