PandaDoc Reaches $1B Valuation with Series C Funding

The Rise of Virtual Business Tools and PandaDoc's $1 Billion Valuation

Over the past 20 months, the COVID-19 pandemic has driven a complete transition to virtual business tools. A startup instrumental in facilitating this shift, PandaDoc, is now announcing a substantial funding round following significant growth.

PandaDoc Secures Series C Funding

PandaDoc, a platform enabling users to create, distribute, and digitally sign documents, has finalized a Series C funding round. The company confirms this round values it at $1 billion.

While the precise funding amount remains undisclosed, this decision is intentional. It is linked to ongoing political sensitivities surrounding the company’s operations in Belarus, where several employees faced arrest after protesting the current government.

Investment Details and Key Participants

OMERS Growth Equity and G Squared are jointly leading this Series C investment. Altos Ventures, Rembrandt Venture Partners, One Peak Partners, and Microsoft’s venture fund, M12, are also participating in the round.

Previously, PandaDoc had secured approximately $36 million in funding, with a valuation around $255 million, as reported by PitchBook data. The considerable increase in valuation signifies the scale of this Series C round.

Expanding Services and Market Position

PandaDoc currently offers a comprehensive suite of services to businesses across diverse sectors. These include e-signature collection, payment processing for contracts, proposals, forms, and invoices.

The company serves a broad customer base, encompassing over 30,000 businesses in industries like construction, education, healthcare, and professional services. The focus will be on expanding existing business and integrating new functionalities.

Global Expansion and Product Development

“Our strategy centers on broadening and deepening our presence in existing markets,” stated Mikita Mikado, CEO and co-founder of PandaDoc, in an interview.

PandaDoc’s contract management solution is already highly regarded, and the company asserts its e-signature offering ranks among the top three in terms of widespread use. “We will continue to compete in these areas while simultaneously pursuing global expansion and investing in localization efforts this year.”

Strong Growth and Business Model

PandaDoc’s customer base spans 130 countries, and the company has experienced 80% user growth in the last year. Revenues have increased by 63% during the same period.

The company operates on a freemium model, offering basic e-signing capabilities for free – a change implemented at the pandemic’s onset. Additional features and increased usage are available through tiered subscriptions at $19/month, $49/month, and customized enterprise plans.

Focus on Enterprise Solutions

The enterprise-level tier is crucial in the context of this investment. While small and medium-sized businesses (SMBs) form the company’s core clientele, investors recognize the potential for growth in the enterprise market through expanded feature sets.

Investor Confidence and Future Outlook

“As a leader within the SMB market, we believe the company is uniquely positioned to challenge established players with a comprehensive, full-stack product extending beyond just e-signatures,” commented Larry Aschebrook, managing partner at G Squared.

“The management team is exceptional, and we are eager to support their innovative and efficient approach in this rapidly evolving landscape.”

Mikado emphasizes the importance of automation: “The more workflows we can automate and refine over time, the better the outcome.”

The Impact of Digital Transformation

PandaDoc’s expanding opportunities reflect the broader trend of “digital transformation.”

The pandemic compelled organizations to rapidly shift from physical to digital operations. This necessitated the digitization of traditionally paper-based processes, creating significant demand for companies like PandaDoc.

Expanding Use Cases and Market Traction

Initially focused on B2B sales, PandaDoc is now receiving requests from diverse organizations, including schools, government agencies, and healthcare providers seeking to streamline processes like employee onboarding.

This trend has attracted investor attention to enterprise tech, and PandaDoc has demonstrated substantial traction as a leading solution.

Investor Statements and Support

“We are proud to lead this new investment in PandaDoc – a highly innovative company shaping the future of documents through its robust, all-in-one document automation platform,” stated Mark Shulgan, managing partner and head of OMERS Growth Equity.

“PandaDoc is a leader in document automation, enabling businesses to enhance efficiency, reduce costs, and accelerate growth. We are excited to support Mikita Mikado’s vision and assist his team in this continued evolution.”