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Leading Web Site Building and Hosting Service Thrives in Hard Times
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Menlo Park, Calif. (July 30, 2002) — Homestead Technologies Inc., the leading provider of Web site building software and services, today announced a $5.4 million investment from Institutional Venture Partners, Meritech Capital, Draper Fisher Jurvetson and other previous investors. The Series E investment will be used to expand the company's marketing and product development efforts.
One year ago, Homestead announced a transition from a free, sponsorship based business to a subscription service. While many initially considered the move risky, one year later Homestead has already exceeded its pre-subscription quarterly revenue, with over 85% of the company's revenue now coming from the new subscription services. The company continues to enjoy accelerating growth in its subscriber base while constantly releasing new services and upgrades to its widely praised service.
"Very early on, Homestead recognized that the industry was changing and advertising would not sustain the company long term. The company's quick and decisive actions helped it thrive during these difficult economic times," said Tim Haley, Partner at Redpoint Ventures. "Furthermore, by fulfilling a critical need for small businesses, non-profits, clubs and families alike, Homestead is creating a strong long-term business."
In the past 12 months, Homestead has strengthened its product lead by constantly improving its software while integrating new, innovative marketing services. It is this product quality, as well as a dedication to its customers and the customer experience, that has enabled the company to make a successful transition from a free service to a thriving, fee-based business.
"Homestead's industry leading service was tremendously successful in attracting 12 million members when it was free," said Paul Madera, Managing Director at Meritech Capital Partners. "Now the company has proven that high quality products and superb customer experience can attract paying customers on the Internet."
"This round of funding is a tremendous endorsement of our business, and will not only carry us through to profitability, but allow us to grow our business more aggressively," said Justin Kitch, CEO of Homestead. "Today, investors are only funding companies that have fundamentally sound businesses, expanding markets, and superior products. We are grateful to be in a position where we have all three key ingredients."
About Homestead
Homestead Technologies Inc. offers the leading Web site building service that provides consumers with a complete, non-technical way to build and maintain an Internet presence on their own. Homestead offers a complete package of website creation software, ad-free world-class hosting, extensive e-commerce capabilities, and comprehensive marketing services to professionals, small businesses, non-profits, clubs, families and hobbyists. Homestead's award-winning SiteBuilder software, included with every Homestead membership, has remained the industry leader and one of the Internet's most popular software offerings by combining tremendous ease-of-use with unlimited power, functionality, flexibility and scalability. More than 12 million registered members have built customizable Web sites using Homestead's services, with hundreds more joining each day. The company is based in Menlo Park, California and its services are available at www.homestead.com.
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Homestead is a registered trademark, and Homestead Personal and Homestead Professional are trademarks of Homestead Technologies Inc., Menlo Park, CA. All other product or company names are used for information or identification purposes only and may be trademarks of their respective owners.
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