Evernote, the digital note-taking company has raised $70 million in its fourth round of funding, earning the company a $1 billion valuation. The round was led by Meritech Capital and CBC Capital, with participation from funds and accounts managed by T. Rowe Price Associates, Inc., Harbor Pacific Capital, Allen & Company, and several other investors.
The money will enable the company to grow its user base in new regions and make strategic acquisitions.
Yet Evernote’s CEO Phil Libin admitted on his blog that the company really didn’t need the money.
“…we took this financing not because we need the money to fund operations, but because we see building our financial infrastructure to be a crucial component of remaining an innovative and durable company,” Libin said. “…Most importantly, we wanted to have the resources on hand to ensure that we don’t get distracted by anything for the next several years; whatever happens in the economy or the market, we can stay 100 percent focused on building the best products and providing the best user experience.”
Plus, the valuation is a nice jewel if the company should follow plans to go public.
Evernote’s digital note-taking products are designed to help you remember everything. The app allows you to save everything from text to pictures to video to other files in the cloud, accessible from any desktop or mobile device. Offering a freemium model, the company charges for premium services, starting at $5 per month for larger upload capacity and offline accessibility.
Based in Mountain View, Calif., the company tripled its customer base in the past year to over 30 million users. More than 25 percent pay for the service. It has acquired four companies in the past year. This latest round of funding brings the company’s total investment to $166 million.
“They’re already the greatest productivity tool introduced in the past decade, and they’re only getting started,” said Craig Sherman, managing director of Meritech Capital. “The company is perfectly positioned to actively enter new verticals, new categories and new regions. I’ve been a devoted Evernote user since they launched and we’re thrilled to be a part of Evernote’s next stage of growth.”