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Sprout Social scores $40.5 million in latest round of funding

Social media marketing firm says it will use the money to expand its platform.

Amy Gesenhues on December 21, 2018 at 2:02 pm

Social media marketing platform Sprout Social announced on Wednesday it had received a new round of funding in the amount of $40.5 million from Goldman Sachs, bringing its total capital to $103.5 million.

What this means for marketers

Sprout Social’s platform provides an array of social marketing tools, including social media listening, analytics and social management. The company also offers customer care services and advocacy solutions. With this latest round of funding, Sprout Social will be able to further position itself as a leader among social media marketing tech solutions.

“The Sprout team has built a remarkable company, evidenced not only by their performance but their focus on culture, quality and their customers. Since our initial investment in 2016, Sprout has continually demonstrated their ability to lead and transform this category through best-in-class technology, tremendous leadership and their customer-centered approach,” said Jason Kreuziger, a representative of the Merchant Banking Division for Goldman Sachs.

Currently, Sprout Social has more than 25,000 customers worldwide. A year ago, Sprout acquired Simply Measured, a move that helped the company expand its social analytics offerings. Sprout Social says the additional $40.5 million will allow it to further accelerate business growth and expand its platform — making it an even more formidable competitor against companies like Hootsuite, SocialFlow, Sprinklr and MomentFeed.

“In many ways, social is still in its infancy, and we’re fortunate to help so many great customers navigate this evolving set of challenges,” said Sprout Social CEO Justyn Howard.

More on Sprout Social

In 2014, Sprout raised $18 million dollars in series B funding, an investment that allowed the company to increase its workforce to 100 employees. Two years later, it raised $42 million dollars in funding.
Sprout’s client list includes top brands like West Elm, Adidas and Evernote. It is also an official marketing partner for all major social platforms, including Facebook, Instagram, Twitter, Pinterest and LinkedIn.
Based in Chicago, Illinois, Sprout currently employees 500 people worldwide.

About The Author

Amy Gesenhues

Amy Gesenhues is Third Door Media's General Assignment Reporter, covering the latest news and updates for Marketing Land and Search Engine Land. From 2009 to 2012, she was an award-winning syndicated columnist for a number of daily newspapers from New York to Texas. With more than ten years of marketing management experience, she has contributed to a variety of traditional and online publications, including MarketingProfs.com, SoftwareCEO.com, and Sales and Marketing Management Magazine. Read more of Amy's articles.