Tailor Brands Raises $50M to Simplify Small Business Launch

Tailor Brands Secures $50 Million in Series C Funding

Tailor Brands, a company specializing in automated branding and marketing solutions for small businesses, announced Thursday the completion of a $50 million Series C funding round.

Investment Details

GoDaddy spearheaded the investment as a strategic partner. Additional participation came from OurCrowd, alongside existing investors including Pitango Growth, Mangrove Capital Partners, Armat Group, Disruptive VC, and Richard Rosenblatt, founder of Whip Media. Since its founding in 2015, Tailor Brands has accumulated a total of $70 million in funding.

Andrew Morbitzer, vice president of corporate development at GoDaddy, stated the company is dedicated to empowering entrepreneurs globally with the necessary tools for online success. He expressed enthusiasm for investing in Tailor Brands and its team, recognizing their vision to facilitate rapid and effortless business launches through AI-powered logo design and branding services.

Company Evolution

Tailor Brands initially gained recognition at TechCrunch’s Startup Battlefield in 2014. Its previous funding round, a $15.5 million Series B in 2018, was primarily focused on AI-driven logo creation.

Currently, the company, with headquarters in New York and Tel Aviv, is developing a comprehensive, all-in-one SaaS platform. This platform aims to provide small business owners with the design, branding, and marketing resources needed for both launching and scaling their operations, all within minutes, according to Yali Saar, co-founder and CEO of Tailor Brands.

User Growth and Expansion

Over the last year, Tailor Brands has experienced significant user growth. The company is currently adding approximately 700,000 new users each month, seeking assistance during the initial stages of business setup.

Notably, the company observed a 27% increase in new business incorporations in 2020, coinciding with the expansion of the creator and gig economies, as Saar explained.

The platform now supports over 30 million businesses. Tailor Brands began monetizing its services at the close of 2019 and has since demonstrated substantial revenue growth, achieving triple-digit annual increases.

Future Plans

The newly acquired funding will be allocated to research and development (R&D), expanding the team size, and enhancing platform capabilities. Potential acquisition opportunities are also being considered.

Saar indicated that Tailor Brands is positioned to utilize the extensive data collected on small businesses to offer proactive guidance, effectively functioning as a “consultant” to assist customers in navigating their business’s future steps.

The company’s objective is to emulate platforms like WeChat, providing a complete ecosystem where users can manage all aspects of their business without needing to leave the platform. Users are increasingly seeking a comprehensive suite of tools, driving this expansion of product offerings.