The digital note taking company Evernote has raised $70 million in its fourth round of funding ahead of its $1 billion IPO valuation, venturebeat is reporting. The private financing was led by Meritech Capital and CBC Capital.
According to the Evernote company blog, the money is not needed for operational cost, but to build a financial infrastructure that will help them remain "innovative and durable." they plan to use the money to "ramp the speed of product improvements, expand internationally, and make future strategic acquisitions."
Evernote CEO Phil Libin says "I am both proud and humbled (if you don’t think this combination is possible, try raising $70 million) that some of the world’s best late-stage investors have decided to help Evernote in our quest. Together with the exceptional guidance we’ve been getting all along from our existing investors — Sequoia Capital, Morgenthaler Ventures, Docomo Capital, and others — this new expertise will help us achieve our next level of success."
Evernote is a note taking software that allows you to upload notes, pictures, and files to their cloud and access them on your mac or PC at home, or your mobile phone on the run. Evernote's apps are all free, but they do offer a premium service at $5 a month, or $45 a year. The premium service features larger uploads and offline access. They have close to 30 million users, with 25% of them using the paid service.
This recent round of funding has brought Evernote's total to $166 million. Since their last round of funding in July, they have made four acquisitions. This current round could lead to more. Lipin hopes it also leads to more users, MAUs and new users have tripled since July.
In an Interview with TechCruch, Lipin ruminates on their current business model, and the reason behind all the heavy funding: “We want as few things as possible to change at the IPO. I don’t what it to be disruptive or a goal, but just a step along the way. We’re focusing 100% of our energy into making the product better. The most important thing is that you trust us, and use Evernote for the rest of your life. Because if you do, we can get the revenue out you. We don’t have to squeeze it out. That’s why the unit economics work so well and the business model is so profitable and attractive”