DocuSign raises $85m, bolsters secure transactions services
Digital signing firm DocuSign announced Wednesday that the company has secured $85m in a recently held funding round consisting mainly of institutional investors. The company, which recently inked an agreement with Microsoft to integrate digital signing throughout Office 365, said it will use the funds to tighten its grip on the digital transaction management market and expand its service’s capabilities.
DocuSign is by no means the first digital signing (or ‘e-signing’) company to hit enterprises (it competes with EchoSign, acquired by Adobe in 2011), but it has enjoyed reasonable success in the space. The company has 95,000 companies signed up to use the service, and claims 40,000 unique users are joining the service each day.
Rather than shipping bulky, complex software that layered policies and certificates on top of proprietary productivity software, which held some early digital signing trailblazers back, DocuSign opted to embed its offering in a range of cloud services that include most of the leading cloud storage players (Google Drive, Box, Dropbox, OneDrive).
The company also recently announced that its digital signing service will be embedded throughout Office 365, a big win for DocuSign given the enterprise IT incumbent still dominates productivity applications in enterprises, and adding further fuel to rumours that the company will go public later this year.
Gordon Payne, chief operating officer of DocuSign said users require digital signing services that work across existing line-of-business processes and enterprise-wide systems if they are going to be of use. That said, the Microsoft deal gave DocuSign access to over a billion productivity application users.
“We have the opportunity to change the way business is done for companies large and small,” said Keith Krach, chairman and chief executive officer of DocuSign.
“Our latest round of financing positions us to help more customers around the world keep business digital with DocuSign as the catalyst for their digital transformations. Our goal is to be a long-term sustainable company that provides value to our customers, partners, employees, and investors for many years to come.”
The recent funding brings the company’s total take since its founding in 2003 to $210m.
In addition to the recently secured funding the company also announced that it is pivoting into security solutions, offering a new security appliance that claims to implement “bank grade” security measures for digital transactions. It gives highly regulated customers encryption key management capabilities and makes digital transactions behind enterprise firewalls auditable, a key area of interest for CIOs.
“Bank of America partnered with DocuSign in the development of this new feature which provides tremendous flexibility to realise the benefits of DTM while maintaining compliance within the Bank’s existing customer agreements, security policies, and regulations that a pure SaaS solution couldn’t have offered,” said Scott Coleman, senior vice president, technology innovation portfolio, Bank of America.