Jun 28, 2022
Salesforce-Backed Front Valued at $1.7 Billion in Funding Round
Bloomberg News
,(Bloomberg) -- Customer communication software maker FrontApp Inc. is now valued at $1.7 billion after receiving $65 million in financing led by Salesforce Ventures and Battery Ventures. This new round roughly doubles the $859 million valuation that the company raised at in 2020, according to data provider PitchBook.
The San Francisco-based business has nearly 8,000 customers in over 100 countries. Its email and customer support software is used by Shopify Inc., Airbnb Inc. and Lyft Inc.
Co-founder and Chief Executive Officer Mathilde Collin started the company in Paris, where the company retains an office. Front now has more than 250 employees, according to its website.
Sequoia Capital, an existing investor in Front, participated in the round because of the company’s strong growth and because its product is needed even more in a downturn, said Bryan Schreier, a partner at the firm. “As companies brace for more economic uncertainty, customer relationships are more important than ever,” he said.
At a time when fewer growth-stage companies are seeking financing due to a broader industry correction, Collin said that she feels it is actually a good time to raise capital because the expectations are “healthier” than the sky-high valuations companies raised funds at last year. She said she “chose not to raise” in 2021 because she was “pretty uncomfortable with how high the multiples were.”
Collin is thinking about the long term, with the possibility that Front could seek an initial public offering someday. “I think we could go public someday for sure,” she said.
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