DocuSign closes mega venture deal with $233 financing round

The latest in a string of mega venture deals is DocuSign, which on Tuesday announced a $233 funding round that will fuel the company’s global expansion.

DocuSign, a San Francisco tech firm that makes software to add legally compliant and secure electronic and digital signatures to documents, said the round was led by Brookside Capital and Bain Capital Ventures, and included institutional investors Wellington Management and Generational Investment Management.

The $233 million round values the company at $3 billion and brings total funding since the company’s 2003 founding to more than $440 million. The valuation is slightly less than double the $1.6 billion market cap at which DocuSign took its last round, an $85 million Series E, more than a year ago.

“The DocuSign team has built an incredible business,” said Nick Kukrika, a partner at Generation Investment Management. “This is exactly the type of company we try to find.”

DocuSign aims to replace the paper-and-pen aspect of business transactions, which remains largely in the signature process.

“This slows business, delays results, and creates … unnecessary costs from printing, faxing, scanning, and overnighting documents to transact business,” the company said. “It shouldn’t be this way. It doesn’t have to be this way.”

DocuSign is available in 43 languages and its customers include more than 100,000 companies in 188 countries. With this new funding, DocuSign says it plans to expand its international presence, creating a global network to support cross-border business transactions.

DocuSign’s funding is the latest in a string of whopper-sized funding rounds. Also on Tuesday, San Carlos-based MarkLogic, a software platform for big data, announced a $102 million Series F, led by investor Gary Bloom, and firms Sequoia Capital, Tenaya Capital and Northgate Capital, all repeat investors. And NerdWallet, the San Francisco consumer financial education and research startup, raised $64 million in its first round of venture funding. The round values NerdWallet in the mid-hundred millions, Reuters reported.

This extends a fund-raising tear that began last week, when San Francisco lending startup Affirm announced it raised $275 million in debt and equity; San Francisco-based software firm Zenefits reported closing $500 million round at a $4.5 billion valuation; and social sharing site Pinterest revealed it had raised $186 million to close out a $553 million round and would allow employees to sell a portion of their stock. And then there is Uber, which reportedly is in talks to raise $1.5 billion to $2 billion, valuing the company at $50 billion or higher.

Image: Logo from DocuSign

 

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