Billion Dollar Unicorns: Squarespace Is Willing To Wait Patiently For An IPO

Market reports suggest that there were more than two billion websites online as of December 2017. The growth in the websites is attributed to the increasing presence of Content Management Systems (CMS) that allow people and organizations to build websites easily without having to truly code. The CMS market is dominated by Wordspace, which accounts for nearly 60% of the sites published. Joomla is a distant second with under 7% market share. But there are several other smaller players that are delivering robust growth within the space. One such player is New York-based Billion Dollar Unicorn Squarespace.

Squarespace’s Offerings

Squarespace was founded in 2003 in the dorm room of Anthony Casalena at the University of Maryland. The idea behind setting up Squarespace came to Anthony when he designed a website for himself and realized that tools that he used to edit the website could come in handy for several others as well. Anthony raised seed funding from his father and invested in servers to set up Squarespace.

Squarespace helps businesses and individuals create and maintain their websites. From a dorm room, the company has grown to a team of nearly 800 employees who are supporting millions of websites.

Squarespace’s Financials

Squarespace earns revenues through a monthly subscription fee for hosting and web publishing services. For individuals, the company charges $12 per month and grants the user access to computer and mobile enabled web pages, galleries, and blogs. Users can also see their website metrics and access a 24×7 support for their issues. For businesses, Squarespace’s product is priced at $18 per month and it gets them Google email, integrated e-commerce, and several premium features such as a mobile information bar, announcement blocks, and several integration capabilities.

The company’s product has seen rapid adoption. While it is no way close to WordPress, the service accounts for 1.5% of the websites published as of December 2017 with nearly 9,800 of them ranking amongst the top one million. Some of its customers include names like Lyft and Wired.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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