VistaPrint Closes $52 Million Financing, To Help with CIM Development
Wednesday, November 10, 2004
LEXINGTON, Mass.--Nov. 9, 2004-- VistaPrint, the leading graphic design agency and printer serving the small business and consumer markets, announced today that it has completed a $52 million Series B equity financing round principally led by prominent venture capital firms Highland Capital Partners and HarbourVest Partners. The funding came in two tranches, with $30 million received in August 2003 and $22 million recently received, bringing to a close the total investment of $52 million. Nigel Morris, co-founder and former president and chief operating officer of Capital One Financial Services, also contributed to the financing. VistaPrint is deploying the proceeds primarily for the construction of new, state-of-the-art, computer integrated manufacturing (CIM) facilities in both Europe and North America that will reinforce and enhance the company's demonstrated ability to re-engineer and standardize the manufacturing of short-run, full-color printing. Funding will also be earmarked for technology development, for further international market penetration, and for expansion of service centers necessary to leverage, grow and support VistaPrint's graphic design service agency and its customer support capabilities. VistaPrint, which has been profitable since mid-2001, has processed more than 6.5 million orders since launching in May 2000 and currently produces more than 10,000 unique print orders per day. The company has experienced a compounded annual growth rate of more than 90% over the past four years and enjoys gross margins that are more than two times greater than the industry average for commercial printers. "Armed with our patented technology, VistaPrint is revolutionizing the graphic design and short-run, full-color printing industries," stated Robert Keane, chairman, president and chief executive officer of VistaPrint. "We offer our customers free graphic design services and incredibly low prices on high-quality printing, but our gross margins still exceed 50% due to our massive volume and our proprietary workflow automation and software technologies. You can see why Highland Capital Partners and HarbourVest Partners are as confident in our growth prospects as we are." Paul Maeder, founder and managing general partner of Highland Capital Partners, stated, "We were particularly impressed by VistaPrint's front-to-back-end process integration and automation in a sector that traditionally has been defined by one-off, craft-based processes. They have 'productized' both the graphic design and the manufacturing of short-run, full-color printing and they continue to be the only supplier with the technology and system scalability to serve this huge market in this manner."