Real Time Communications Industry News

TMCNet:  Austin-based Spredfast raises $18 million for expansion

[February 05, 2013]

Austin-based Spredfast raises $18 million for expansion

Feb 05, 2013 (Austin American-Statesman - McClatchy-Tribune Information Services via COMTEX) -- As more corporations use social media to interact with customers, they're realizing they need a way to manage the process.

That trend is driving growth at Austin-based Spredfast, which sells software that lets companies manage their efforts across multiple social media sites including Facebook, Twitter, LinkedIn and YouTube.

The company, which signed 100 new customers in the past year including AT&T, Caterpillar and Starbucks, said Tuesday it has raised $18 million to accelerate development and expand its workforce.

Spredfast has 110 employees, up from about 60 a year ago. It plans to add another 50 employees this year, and is currently hiring in development, sales and marketing.

To accommodate its expansion, the company is moving in May to larger downtown offices at 200 W. Cesar Chavez from its current space at 412 Congress Ave.

The lead investor in the funding round was Boston-based OpenView Venture Partners, with participation from Austin Ventures and California-based InterWest Partners. Spredfast, founded in 2008, has raised a total of $33.6 million.

Spredfast's software lets clients manage campaigns and conversations across a wide range of social media outlets and blogging platforms. Rather than going to each social site, Spredfast lets users publish and monitor social activity from one central platform.

CEO Rod Favaron said companies are investing in Spredfast's tools because the way they are using social media is changing.

"It used to be you'd put up a Facebook page and listen to what people were saying about your brand. Now it's a place where you have conversations," he said. "People don't pick up the phone and call you if they have a problem, they Tweet it, and they expect a thoughtful response." Spredfast has 250 customers, including Starbucks, Whole Foods, Warner Brothers and T. Rowe Price. The company doesn't disclose financial information, but Favaron said revenue grew 400 percent in 2012 compared with the year before.

Favaron said Spredfast corporate customers have anywhere from 100 to 1,000 social accounts, which are managed by multiple employees often spread around the world.

"It gets complicated pretty quickly when you're launching products and holding events and answering questions for every product at the same time," he said. "We let you do all of your commenting and interacting from one place, while capturing audit trails of everything that happens." The company's competitors include big players like and Oracle Corp., as well as a dozen smaller players including Hootsuite of Vancouver and Hearsay Social of San Francisco.

Adam Marcus, managing director at OpenView Venture Partners, said Spredfast is well positioned as businesses focus on engaging with their customers.

"Companies are no longer concerned with Likes, but rather with building real customer engagement and value across their social networks," he said in a written statement. "We believe Spredfast has built the only true enterprise-class product to help the Fortune 1000 manage this important channel." ___ (c)2013 Austin American-Statesman, Texas Visit Austin American-Statesman, Texas at Distributed by MCT Information Services

[ Back To Real Time Communications's Homepage ]

Featured Videos

GenView Real Time Session Manager Demo

Session-based VoIP and rich media services such as video can place unique demands on the network.


Contact GENBAND about the SPiDRâ„¢ WebRTC Gateway by clicking here.

A videoconference that calls you

On the busiest of days, who has time to stop and search for that bridge information, to have to dial or hope the link works...only to wait for the chairperson to arrive?

Call Grabber Demo

Move calls seamlessly between phones, soft clients and mobile devices at the push of a button.

Hosted Unified Communications

GENBAND's Hosted Unified Communications is a SMART OFFICE™ solution that enables voice over broadband to Business users, providing flexible migration from legacy services, supporting full regulatory features, and offering advanced services.

Featured Whitepapers

Is Your Network Ready for the Internet of Everything?

The telephone industry is undergoing a dramatic transformation that began with the introduction of IP-based data networks in the early 1990s and then with Voice over Internet Protocol (VoIP) in the late 1990s, and it now includes all forms ofvoice, video, and messaging communications.

Building a Secure and Scalable Multimedia IP Exchange

As fixed and mobile operators increasingly move to IP-based networks, the complexity required to interconnect these networks grows dramatically. Faced with increasing competition from all corners and constant challenge to grow revenues, operators are struggling with the variety and disparities in partner and customer networks.

How Carriers Can Optimize for LTE Roaming

Connectivity between mobile network operators (MNO) in 4G LTE is much more complex than it was in legacy networks.This complexity is primarily due to the change in focus. LTE is not a voice-focused roaming environment, but rather a datacentric environment.

Featured Case Studies

CASE STUDY: Real Time Communications Made Easy Via The Mobile Web

HubRTC offers the world's first WebRTC communication as a service to small and medium businesses, combining browser-based voice, video and messaging over WiFi that works on personal computers and Android smartphones and tablets. Their basic and premium solutions work with existing PBX applications servers, and support rich feature sets including voice mail and visual voice mail, audio and video conferencing, all for a fraction of the cost of old fashioned "phone systems." They have combined their Real Time Communications experts with software, devices and accessories, and cloud platforms to deliver a true office-on-the-run.

CASE STUDY: TW Telecom Accelerates Market Adoption of SIP Trunking Services

tw telecom is one of the top three largest providers of Business Ethernet in the US, connecting approximately 20,000 commercial buildings and third-party data centers to its national fiber network.

CASE STUDY: Embedding Real-Time Communications Into Digital Interactive Publishing Platforms

X-Factor Communications (XFC) is a premium provider of easy-to-use, interactive digital media software and services delivering single point publishing of Mass Notifications, advisories, emergency messages, rich informational content and advertising to any connected device.

Featured Webinars

WebRTC Applications for Service Providers using GENBAND'S SPiDR Gateway

GENBAND's SPiDR WebRTC Gateway provides an intelligent bridge between SIP/IMS based VoIP networks and the open ecosystem of the Internet. WebRTC holds great promise to revolutionize the nature of our daily communications. But what should you, as a service provider, be doing today to take advantage of this movement?

Best Practices in Deploying Hosted IP Telephony

Speaker: Sara Hughes and Mitch Layman

LTE, How Can You Accelerate The Payback? Diameter Signaling Controller

Speaker: Ashish Jain - Director Solutions Marketing