Tailor Brands raises $50 million, led by GoDaddy, for small businesses
The company is used by 700,000 new businesses each month and has raised a total of $70 million
Israeli online platform for brand design, Tailor Brands, has raised $50 million in a Series C funding round led by GoDaddy, an American internet registrar and web hosting company. Additional participation came from OurCrowd as well as existing investors Pitango Growth, Mangrove Capital Partners, Armat Group, Disruptive VC, and serial entrepreneur Richard Rosenblatt. The latest round brings its total funding to $70 million.Following the Covid-19 pandemic, Tailor Brands expanded from an AI-powered logo maker into a SaaS platform that provides a range of design, branding, and marketing services for small businesses. In 2020, it became more important than ever for local stores to set up a digital presence and ‘storefront’ online, and its platform can help them design a logo, create social media content, and more.
“Once we started to really track the explosive growth of small businesses as a result of Covid, we knew that Tailor Brands could provide real value for these business owners in a fun and engaging way by removing many of the hurdles that come with establishing and marketing a new business, including consolidating all of the needed services in one place, enabling business owners to free up valuable time to focus on other important aspects of growing their companies,” said Yali Saar, CEO and co-founder of Tailor Brands. “We are thrilled to have this vote of confidence from GoDaddy and our other investors as we continue on our growth trajectory with Tailor Brands’ unique position in the growing SMB economy.”The company uses machine learning to scale and improve branding options for users. Its proprietary human-computer guidance and design concepts can provide designs in minutes and is used by 700,000 new businesses each month.
“GoDaddy is empowering everyday entrepreneurs around the world by providing all of the help and tools to succeed online,” added Andrew Morbitzer, Vice President, Corporate Development at GoDaddy. “We are excited to invest in Tailor Brands - and its team - as we believe in their vision. Their platform truly helps entrepreneurs start their business quickly and easily with AI-powered logo design and branding services.”GoDaddy has more than 20 million customers and 7,000 employees, helping business owners secure their website domains and host online sites for their companies. Tailor Brands intends to use the funding from GoDaddy by increasing its investment into R&D to expand its capabilities offered on its platform and improve its marketing efforts. Tailor Brands was founded in 2015 by Saar, Tom Lahat (CDO), and Nadav Shatz (CTO). It last raised funding in 2018 with a $15.5 million Series B and is based in New York and Tel Aviv.