DesignCrowd, an Australian online design company has raised $10 million in funding. The investors were Perennial Value Management, Alium Capital, Ellerston Capital, Regal Funds Management and CVC.
SYDNEY, Australia, February 2 2021 – Online design company DesignCrowd has raised $10m to help drive the growth of its new product BrandCrowd and further expand its team.
The $10m pre-IPO fundraising came from five investors: Perennial Value Management, Alium Capital, Ellerston Capital, Regal Funds Management and CVC. The new investors will join existing DesignCrowd backers Starfish Ventures and AirTree Ventures with this latest fundraising taking DesignCrowd’s total capital raised to over $22m.
This capital raise follows a period of strong growth for the business, which saw net revenues grow 54% year-on-year, last financial year.
The company’s recent growth has been primarily driven by the success of its new DIY design tool on BrandCrowd (www.brandcrowd.com) — which helps entrepreneurs and small business owners make logo designs and other related designs, such as business cards or social media designs, for new or existing businesses.
The launch of the new product on BrandCrowd has allowed the company to enter into the DIY design market and develop a SaaS business model – helping it expand beyond the design marketplace business model which DesignCrowd has historically focused on.
Having been in development for two years and growing at around 100% year-on-year, BrandCrowd’s new DIY design product is generating meaningful subscription revenues for the company. In the past 12 months, BrandCrowd attracted over 5 million signups with over 50% of its revenue coming from the USA.
Alec Lynch, Founder & CEO of DesignCrowd, said: “Online DIY design is a large, global and fast-growing market – and our new DIY design product on BrandCrowd has allowed us to successfully expand into this market. Over the last 2 years, BrandCrowd has driven significant revenue growth for us – which continued last year despite the global pandemic. BrandCrowd has also allowed us to develop a subscription business model for the first time to sit alongside our existing DesignCrowd marketplace business.”
The new capital will be primarily used to invest in product development, an expanded team and marketing that will help drive the growth of the business further and, in particular, help drive the growth of its new BrandCrowd product. The addition of pre-IPO investors also helps position the company up for a potential ASX IPO in the future.
Lynch added: “The additional capital we’ve raised will allow us to make further investments in our team and our product – particularly BrandCrowd – which we believe will drive further growth in 2021 and beyond. In addition to the capital, we’re also delighted to welcome a number of new investors aboard who will support the next phase for the company.”
Rajeev Gupta, Partner Alium Capital, said: “Alec and the leadership team have built a fast growing and global technology business, that is providing its users with access to world class design. With BrandCrowd’s global growth opportunity, recurring revenue nature and complimentary positioning with the core DesignCrowd business, we are excited to invest and support the next growth phase.”
Founded in 2007, DesignCrowd is an online design company that aims to help people everywhere launch their dream business or creative idea, by providing access to the best designs and design talent in the world.
DesignCrowd operates two websites: DesignCrowd.com and BrandCrowd.com.
DesignCrowd.com is a marketplace that helps businesses crowdsource graphic, logo and web design from designers around the world. BrandCrowd.com is a DIY design tool with a SaaS business model, that allows entrepreneurs and small business owners to make logo designs and other related designs, such as business cards or social media designs, for new or existing businesses.