DuckDuckGo Raises $100M in Secondary Investment - Growth Surge

DuckDuckGo Secures Further Investment and Expands Privacy Focus

The momentum in privacy technology continues to build. Search engine DuckDuckGo recently announced a significant financial boost, receiving over $100 million in “mainly secondary investment” from a diverse group of investors late last year.

Investor Lineup and Funding Details

Among the investors participating in this funding round are Omers Ventures, Thrive, GP Bullhound, Impact America Fund, and Brian Acton, the co-founder of WhatsApp. Additionally, Tim Berners-Lee, the inventor of the World Wide Web, Freada Kapor Klein, a VC and diversity activist, and entrepreneur Mitch Kapor also contributed.

This secondary investment provided an opportunity for early employees and investors to realize value from their equity holdings, while simultaneously strengthening DuckDuckGo’s financial standing.

Strong Financial Performance

DuckDuckGo reports that its business is thriving, having been profitable since 2014. Currently, the company’s revenues exceed $100 million annually, reducing the need for frequent external funding.

The last venture capital raise occurred in 2018, securing $10 million after being actively courted by Omers Ventures, who encouraged the investment to support growth initiatives, particularly internationally.

Key Growth Metrics

Over the past year, DuckDuckGo’s applications have been downloaded more than 50 million times – a substantial increase compared to all previous years combined.

Monthly search traffic has risen by 55%, and market share data suggests DuckDuckGo has achieved the No. 2 position for search engines on mobile devices in several countries, including the U.S., Canada, Australia, and the Netherlands (according to StatCounter/Wikipedia).

The company estimates its user base to be between 70 and 100 million, based on market share estimates, download figures, and national surveys.

Anticipated Growth in Europe

An upcoming change to Google’s Android choice screen in Europe, mandated by regulators, is expected to further enhance DuckDuckGo’s position in the region.

This shift will require Google to present users with alternative search engine options when setting a default, creating a favorable environment for privacy-focused alternatives like DuckDuckGo, which benefits from strong brand recognition.

Marketing Expansion

DuckDuckGo plans to increase its marketing efforts in Europe and other regions. Recent campaigns in the U.S. included billboard, radio, and television advertisements in 175 metro areas.

A significant portion of the secondary funding will be allocated to growth marketing, capitalizing on increasing public awareness of online privacy, tracking, and intrusive advertising.

Apple's Influence and the Rise of Privacy Awareness

Apple’s recent implementation of features informing iOS users about third-party app tracking and providing options to opt-out has also contributed to heightened privacy awareness, supported by Apple’s own advertising campaigns.

Crafting a compelling marketing message around privacy has become easier than ever, reflecting the advancements in usability and accessibility within the privacy tech sector.

Future Product Development

DuckDuckGo aims to become a widely recognized name for simple privacy protection. The company is expanding its “all-in-one privacy bundle” with new features.

These include an email protection tool, slated for beta release in the coming weeks, designed to enhance user privacy without requiring a new email address.

Furthermore, app tracker blocking for Android devices will be available in beta later this summer, offering greater transparency into app activity. A desktop version of its mobile app, intended as a primary browser, is planned for release before the end of the year.

The Trend Towards Privacy Bundles

A growing trend in privacy tech involves companies leveraging their established reputation in one area to offer a comprehensive suite of privacy tools.

ProtonMail, now known as Proton, exemplifies this approach, providing end-to-end encrypted email, cloud storage, a calendar, and a VPN, all under a unified privacy-focused brand.

Continued development and mainstream adoption are anticipated as privacy technology continues to gain momentum.