WordStream Receives $6M in Series B Funding Led by New Investor Egan-Managed Capital

WordStream, an Internet marketing software company, has secured $6 million in series B financing from Egan-Managed Capital, a new investor in the company that led the round, and was joined by existing investor Sigma + Partners. The company will use the funding for continued growth and expansion of its search marketing tools for search engine optimization (SEO) and pay-per-click (PPC) advertising. WordStream also appointed Frank Andrasco, a Partner at Egan-Managed Capital, to its board of directors. Since the company’s launch in early 2009, WordStream has grown from four founding employees to more than 35, and already more than 500 businesses worldwide rely on WordStream software to help power their PPC and SEO marketing efforts. Andrasco, a Partner at Egan-Managed Capital and a new member of the WordStream Board of Directors, says “I’ve followed WordStream closely since its initial funding 18 months ago and have been delighted with their pace of product innovation and the growth in their customer base. I’m looking forward to joining with Sigma and the WordStream management team to help build a company that can make the power of search marketing accessible to small and medium-sized businesses.”

Paul Flanagan, a Managing Director at Sigma Partners and a member of the WordStream Board of Directors, says “We’re thrilled to have Egan join us in backing WordStream. We find SaaS business models a very attractive investment opportunity, and WordStream is a particularly compelling SaaS company because of the high degree of product innovation and the simple, powerful nature of their tools.”