San Diego-based GoSite, a software company that builds modern online products for small businesses, has raised a $16 million Series A round after seeing record growth during the global pandemic.
Founder and CEO Alex Goode launched GoSite in 2013 as a website design company, building web pages for small businesses. Since then, GoSite has evolved into a global platform for small businesses that traditionally operate offline.
GoSite is now operating in all 50 states, and has rapidly grown its team to 250 employees in San Diego. The company has partnered with more than 6,000 merchants, and has accumulated “thousands” of paying clients.
This is the first institutional round for the 7-year-old startup. The financing round was led by San Diego-based Longley Capital with participation from Stage 2 Capital, Ankona Capital, Serra Ventures and SaaS Ventures.
The funding will be used to expand its national footprint, hire talent and further develop its products and services for small businesses, according to the company.
GoSite serves as a 360 platform, with the ability to design and maintain website presences, respond to reviews and receive messages from customers. It includes payment features among others tools.
Over the last decade, the company has capitalized on growth of traditionally offline businesses — such as landscapers, hair salons and auto repair shops — moving to a greater online presence.
GoSite saw a significant uptick of new users once the government issued stay-at-home orders in March.
“In the last 12 months, we have grown by 180% with a large uptick in new customers,” said Goode. “We also saw a 70% jump in new customer acquisition throughout the first few months of COVID. We’ve been forecasting this digital transformation for the small business industry for a long time. Fortunately we were well positioned to be the platform that small businesses could use to transfer their business online.”
Over 30M SMBs
Today, there are more than 30 million small businesses in the U.S. alone, and hundreds of millions of small businesses globally. Many are facing difficult challenges due to the coronavirus but GoSite is helping these businesses weather the storm.
GoSite’s software integrates with all the major consumer platforms including Yelp, Facebook, Google Maps and Alexa — essentially all platforms where consumers find local businesses in the digital world.
In addition, the software offers products like payments and invoices, making it easier for merchants to transact business online and with mobile devices.
The company charges small businesses a monthly subscription to use their tools, ranging from $50 to $250 per month depending on what the client needs. Goode said the company is bringing in multi-millions in annual revenue, but didn’t disclose the amount.
There are many players offering similar tools or platforms including Clover Go, San Diego-based SOCi, and Square. However, GoSite is confident it is well positioned within its industry.
“From a competitive standpoint, GoSite is heads-down focused on listening and understanding its customers’ needs, and using that to steer future product decisions and future roadmap,” said Goode.
Earlier this year, GoSite received Comparably’s coveted national rankings for both best company culture and best CEO. Other recognition includes top diversity in the workplace and best places to work for women.
“Since day one, we’ve always tried to build a very diverse and inclusive company and culture,” said Goode. “It’s built into our values and foundation as a company. It’s really exciting, even throughout COVID, for us to continue to build a great team and a great culture here.”
Saunak Shah, Tech Coast Angels deal lead for GoSite, said he was impressed with the startup’s ability to build upon its success and navigate through the current pandemic.
“GoSite is a feel-good story for small startup companies with Alex and his team showing how great leadership, strategy and execution can work in perfect harmony to navigate through the current pandemic,” said Shah. “They’ve seen record revenue the past few months by helping small businesses survive with an e-commerce strategy, and this latest investment round shows that great companies and leaders can be successful in any environment.”
Frank Auger also recently stepped up to become GoSite’s chief customer officer. Auger will lead GoSite’s customer experience and expand its global footprint. Formerly, Auger served as chief information officer at Hubspot, a publicly traded company and leading growth platform.
Headquartered in Mission Valley, the company more than doubled its space last year to a 20,000-square-foot office. GoSite also plans to add more tech jobs in 2021, specifically within product, engineering and marketing.