Document automation platform PandaDoc raised $30 million in Series B extension funding in preparation to take on the $25 billion eSignature industry pioneered by DocuSign and Adobe Sign, founder Mikita Mikado told Crunchbase News.
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The San Francisco-based company enables users to create, deliver and manage their teams’ quotes, proposals, contracts and other sales collateral.
The idea for PandaDoc came from a document automation tool Mikado started in 2011 called Quote Roller. It was launched in Belarus and grew to 3,000 customers, he said.
“We realized that we were building a small thing for a small market, and if we were to turn things around, we would be building a big thing for a big audience,” Mikado said. “We decided to take a big risk and moved to Silicon Valley.”
One Peak Partners led the round with participation from Microsoft’s Venture Fund, Savano Capital Partners, European Bank for Reconstruction and Development and David Sipes. As part of the investment, Sipes, former RingCentral COO, will join PandaDoc’s board of directors.
The extension is in addition to the $15 million raised in PandaDoc’s original Series B round in 2017, according to Crunchbase data. In total, the company has raised $50 million since its inception in 2011.
With this new funding, the company is poised to take on its competitors, Mikado said. He cited differentiations such as PandaDoc’s free option, as well as its capabilities to support transactional document workflows.
“Those are just the tip of the iceberg for us, there is so much that precedes the signing piece, and that is where we are the best,” he added. “We went for more funding because the market is immense, and if we play our cards right, we have a great chance to be a winner.”
The company is also expanding to new businesses, such as education and health care. PandaDoc already has more than 20,000 paid customers using its platform—that number doubled from the past year—and added more than 50,000 users after launching its free tool in March 2020 in response to COVID-19.
PandaDoc has 350 employees and is planning to hire across the business in its offices in San Francisco, Minsk, Belarus, St. Petersburg, Florida, and Manila, Philippines, Mikado said.“There are a variety of new industries where we will invest,” he said. “We will continue to grow our free customer base, and we see continued success with our enterprise customers, such as Autodesk. While we started in the SMB market, we are seeing massive adoption within the mid market and enterprise companies.”