Today LeadPages announced it has raised a $27 million Series B round, led by Drive Capital with participation from Foundry Group and Arthur Ventures.
LeadPages allows a user to create a custom landing page, all backed by a suite of digital marketing tools designed to drive conversion rates on the page. Since the company launched in January 2013 they have worked with over 35,000 customers and increased overall conversion rates by 400 percent.
This round follows a $5 million Series A in 2013, and brings LeadPages’ total funding to $38 million dollars. While the company won’t release its post-funding valuation, similar website-creation companies have been recently valued anywhere from $500 million (Squarespace and Weebly) to one billion dollars (Wix).
While competitors like Squarespace and Weebly also make it easy to put up a quick landing page, neither pays much attention to conversion rates. By making conversion a priority, LeadPages has a competitive advantage among customers who want to build a website with the sole purpose of capturing sales or signups.
The company even allows users to sort templates by estimated conversion rate, a feature that is unique to LeadPages. Other features include A/B testing and SMS campaigns, both of which are tools tailored to a user wanting to optimize conversion rates.
The company has been cash-flow positive since its inception, but plans to spend this funding on expanding their engineering and sales teams, as well as possibly making a few strategic acquisitions.
This funding also coincided with the company launching LeadPages Corporate, an enterprise-level version of LeadPages. Additionally, LeadPages announced it is launching its own user conference, Converted, which will take place in October in Minneapolis.